Malu Cursino
Live reporter

Image source, PA Media

Tulip Siddiq's decision to step down from office came after the MP for Hampstead and Highgate was named in an investigation into claims her family had embezzled up to £3.9m in Bangladesh.

Siddiq, whose aunt is the south Asian country's former prime minister, has repeatedly denied any wrongdoing - a claim Prime Minister Keir Starmer's standards adviser Laurie Magnus seems to support.

But in her letter to the prime minister, Siddiq said that while Magnus found she had not breached ministerial rules, continuing in her role "is likely to be a distraction from the work of government".

In acknowledging Siddiq's resignation, Starmer told his former minister he wants "to be clear that the door remains open for you going forward".

For shadow home secretary Chris Philp, the PM was "far too slow to act in this case", while Conservative leader Kemi Badenoch says Starmer "dithered and delayed" in trying to protect Siddiq.

That's it from us, but our political team has all the latest updates on this story for you.

Tulip Siddiq will remain as a Labour MP but has stepped down from her government job as economic secretary to the Treasury - so what does that job actually entail?

Well, it includes a number of responsibilities such as overseeing banking and consumer credit, financial inclusion and capability, and personal savings policy (ISAs, savings, tax, etc).

Also under Siddiq's remit was tackling corruption in UK financial markets - it was this element of the role which prompted particular criticism after she was named in an investigation into claims her family embezzled up to £3.9bn from infrastructure spending in Bangladesh.

Siddiq had held the job since July 2024, when Labour got into power, having previously served as shadow minister to the Treasury while in opposition. As we reported earlier, Wycombe MP Emma Reynolds has been selected as Siddiq's replacement.

Corruption probe difficult for government to move pastpublished at 19:00 Greenwich Mean Time 14 January

19:00 GMT 14 January

Chris Mason
Political editor

For all of the complexities and subtleties of this story, the inescapable crux of it was something even the most polished public relations executive would struggle to add much gloss to - the minister responsible for the government’s anti-corruption drive was named in a corruption investigation.

The MP for Hampstead and Highgate in north London referred herself to the independent adviser on ministerial standards and insisted she had done nothing wrong, but awkward questions continued for her and Keir Starmer.

At last week's Prime Minister's Questions, Starmer said:"Mr Speaker, the Cities Minister acted appropriately by referring herself to the independent advisor. We brought in our new ministerial code to allow ministers to ask to establish the facts and I’m not going to give a running commentary on that."

Today, the adviser, Laurie Magnus, told the prime minister Tulip Siddiq had not broken the Ministerial Code and he had not identified evidence of improprieties. But he added: "I have not been able to obtain comprehensive comfort in relation to all the UK property related matters."

Magnus said she was now exposed to "allegations of misconduct by association" and "it was regrettable that she was not more alert to the reputational risks".

The prime minister and Siddiq spoke by phone today. We are told it was her decision to resign.

And in a warm exchange of letters, Starmer said he accepted her resignation with sadness and "the door remains open to you going forward."

Shadow home secretary Chris Philp has reacted to Tulip Siddiq's resignation, saying Starmer was "far too slow to act in this case".

"The independent advisor's report say there is still a number of unanswered questions about the origin of some of these extremely expensive properties that Siddiq somehow purchased," he says.

Philp, a former Conservative minister, says Siddiq's appointment as a treasury minister "casts doubt on the Prime Minister's judgement" and called for a further investigation into the case.

As a reminder, Siddiq, the Labour MP for Hampstead and Highgate, had referred herself to the PM's standards adviser, Sir Laurie Magnus, but insisted she had done nothing wrong.

Image source, Reuters

As we've been reporting, Emma Reynolds has been appointed economic secretary of the Treasury following Siddiq's resignation.

Reynolds had previously been parliamentary secretary at HM Treasury and the Department of Work and Pensions - a role she took up in July 2024 following the general election.

She was elected as MP for Wycombe in July 2024, having previously been elected three times as MP for Wolverhampton North East between 2010 and 2019.

In 2019, the Wolverhampton North East seat was won by Conservative MP Jane Stevenson.

Posts Reynolds had held while in opposition include shadow minister for housing and shadow secretary of state for communities and local government.

A personal and political blow for Starmerpublished at 18:09 Greenwich Mean Time 14 January

18:09 GMT 14 January

Damian Grammaticas
Political correspondent

For Keir Starmer, this is as much a personal as it is a political blow. Tulip Siddiq was an ally and close friend.

Both entered parliament as Labour MPs in May 2015. They occupied neighbouring constituencies in London. And they knew each other even before being elected.

In recent days, as the questions swirled about her ownership and use of properties in London, he stood by his friend and pick for minister.

His spokesperson told reporters just yesterday he had “full confidence” in her.

Sir Keir’s advisor found no evidence of “improprieties” on her part.

But his opponents are already questioning his judgement in appointing her to be his anti-corruption minister and keeping her in her role until now.

The story attached to Tulip Siddiq's resignation is a complex one involving an anti-corruption investigation in Bangladesh - so let's look at that:

• Siddiq's aunt is former Bangladeshi prime minister Sheikh Hasina, head of the Awami League, who fled into exile after being deposed last year

• There's an ongoing probe in the country - based on a series of allegations made by Bobby Hajjaj, a senior political opponent of Hasina - into claims Siddiq's family embezzled up to £3.9bn from infrastructure spending in Bangladesh

• Court documents seen by the BBC show that Hajjaj accused Siddiq of helping to broker a deal with Russia in 2013 that overinflated the price of a new nuclear power plant in Bangladesh
• A source close to the former minister, whose role included tackling corruption in UK financial markets, described the allegations as "trumped up" and designed to damage her aunt

• Siddiq has also come under intense scrutiny over her use of properties in London linked to her aunt's allies
• But she has denied any wrongdoing - a claim Prime Minister Keir Starmer's standards adviser Laurie Magnus seems to support - and says she decided to resign because of the distraction her staying would cause for the government

Image source, EPA

More now from independent standards adviser Laurie Magnus's letter to Keir Starmer about his probe into Siddiq's affairs.

Reports in recent days have suggested she had lived in London properties linked to allies of Siddiq's aunt Sheikh Hasina, who was ousted last year as Bangladesh's prime minister.

Magnus tells the PM that Siddiq was "unaware of the origins of her ownership of her flat in Kings Cross, despite having signed a Land Registry transfer form, relating to the gift at the time".

He writes that the former treasury minister "remained under the impression that her parents had given the flat to her, having purchased it from the previous owner".

Opponents of Sheikh Hasina in Bangladesh have also accused Siddiq of helping broker a deal with Russia in 2013 that overinflated the price of a nuclear power plant in the country so the money could be distributed to her family.

Referring to a trip to Moscow in 2013 - where Siddiq was pictured alongside Russian President Vladimir Putin and her aunt, Sheikh Hasina - Magnus says the MP "is clear that she had no involvement in any inter-governmental discussions between Bangladesh and Russia or any form of official role".

He adds he accepted this "at face value".

As we reported previously, Tulip Siddiq had referred herself to Keir Starmer's standards adviser, Laurie Magnus.

It's understood Magnus reported back on his investigation today - after which Starmer and Siddiq spoke on the phone. Sources say it was Siddiq's decision to resign.

In his letter to the PM, Laurie Magnus, Starmer's standards adviser, details Siddiq's self-referral to him and "an exercise to establish the facts connected to recent media allegations about Ms Siddiq that are pertinent to her role".

We're looking at that letter now and will bring you key takeaways from it shortly.

Voters "rightly expected better" from the government, a Liberal Democrats' spokesperson says following Tulip Siddiq's resignation.

Sarah Olney says: "It's right Tulip Siddiq resigned, you can't have an anti-corruption minister mired in a corruption scandal.

"After years of Conservative sleaze and scandal, people rightly expected better from this Government".

Image source, UK Parliament/PA

Some reaction now from the leader of the Conservatives: Kemi Badenoch says Keir Starmer "dithered and delayed to protect" Tulip Siddiq.

In a post on X, the Conservative Party leader says: "It was clear at the weekend that the anti-corruption minister's position was completely untenable.

"Yet Keir Starmer dithered and delayed to protect his close friend.

"Weak leadership from a weak prime minister."

In response to Tulip Siddiq's resignation letter below, Prime Minister Keir Starmer tells his former minister he wants "to be clear that the door remains open for you going forward".

In a letter responding to Siddiq, Starmer says he accepts her resignation "with sadness" and thanks her for her "commitment" during her time as economic secretary to the Treasury.

"In accepting your resignation, I also wish to be clear that Sir Laurie Magnus as independent adviser has assured me he found no breach of the Ministerial Code and no evidence of financial improprieties on your part," he writes.

He goes on to thank her for referring herself to the independent adviser, adding: "I appreciate that to end ongoing distraction from delivering our agenda to change Britain, you have made a difficult decision and want to be clear that the door remains open for you going forward."

"Dear Prime Minister,

"Thank you for the confidence you have shown in me in recent weeks.

"I am grateful to your Independent Adviser on Ministerial Standards Sir Laurie Magnus for acting with speed and thoroughness in response to my self-referral, and for giving me the opportunity to share the full details of my finances and living arrangements, both present and historic.

"As you know, having conducted an in-depth review of the matter at my request, Sir Laurie has confirmed that I have not breached the Ministerial Code. As he notes, there is no evidence to suggest that I have acted improperly in relation to the properties I have owned or lived in, nor to suggest that any of my assets 'derive from anything other than legitimate means'.

"My family connections are a matter of public record, and when I became a Minister I provided the full details of my relationships and private interests to the Government. After extensive consultation with officials, I was advised to state in my declaration of interests that my aunt is the former Prime Minister of Bangladesh and to recuse myself from matters relating to Bangladesh to avoid any perception of a conflict of interest. I want to assure you that I acted and have continued to act with full transparency and on the advice of officials on these matters.

"However, it is clear that continuing in my role as Economic Secretary to the Treasury is likely to be a distraction from the work of the Government. My loyalty is and always will be to this Labour Government and the programme of national renewal and transformation it has embarked upon. I have therefore decided to resign from my Ministerial position.

"I would like to thank you for the privilege of serving in your Government, which I will continue to support in any way I can from the backbenches.

"Best wishes, Tulip Siddiq MP"

Image source, PA Media

Emma Reynolds has been appointed economic secretary to the Treasury following Tulip Siddiq's resignation.

Reynolds, 47, an MP for Wycombe, was elected in the 2024 general election.

She served as pensions minister prior to her new appointment.

Tulip Siddiq has resigned as Treasury minister following weeks of questions over her financial ties to her aunt Sheikh Hasina, who was ousted last year as prime minister of Bangladesh.

It comes after she was named in an investigation into claims her family embezzled up to £3.9bn from infrastructure spending in Bangladesh.

The Labour MP for Hampstead and Highgate had referred herself to the PM's standards adviser, Sir Laurie Magnus, but insisted she has done nothing wrong.

She said that whilst Sir Laurie found she had not breached ministerial rules, it was "clear that continuing in my role as economic secretary to the Treasury is likely to be a distraction from the work of government."

Treasury minister Tulip Siddiq resigns after growing pressure over an anti-corruption investigation in Bangladesh.

We'll bring you more on this as we get it.