Tulip Siddiq, MP for Hampstead and Highgate, has stepped down as a Treasury minister following scrutiny over her connections to her aunt Sheikh Hasina’s ousted political movement in Bangladesh.
The resignation comes after growing controversy surrounding alleged financial dealings and land allocations linked to her family during Sheikh Hasina's 20-year tenure as Prime Minister of Bangladesh.
In her resignation letter to Labour leader Sir Keir Starmer, Siddiq maintained she had "not breached the ministerial code" but stated that remaining in her post would be "a distraction from the work of the government."
Downing Street announced that Emma Reynolds, MP for Wycombe, will replace Siddiq as Treasury minister. Torsten Bell will take Reynolds’ former role in the Department for Work and Pensions.
Ethics inquiry clears Siddiq but raises concerns
Last week, Siddiq referred herself to Sir Laurie Magnus, the prime minister's adviser on ministerial interests. Magnus concluded that while Siddiq had not violated the ministerial code, it was "regrettable" that she had not been "more alert to the potential reputational risks" posed by her close family ties.
His review of her financial affairs and property ownership found no evidence of impropriety. In his response, Sir Keir praised Siddiq for making the "difficult decision" to resign and emphasised that she left with "no breach of the ministerial code and no evidence of financial improprieties." He assured her that "the door remains open" for future contributions to the party.
Allegations of financial misconduct
The controversy surrounding Siddiq centres on allegations raised by political opponent Bobby Hajjaj. He accused Siddiq of brokering a £1 billion inflated deal for a nuclear power plant in 2013, allegedly benefiting her family through offshore networks. Documents obtained by the BBC reportedly link Siddiq to the transaction, though she has categorically denied any involvement.
Additionally, Siddiq is under investigation in Bangladesh for alleged misuse of influence to secure land allocations for her family in Dhaka's diplomatic zone. The Anti-Corruption Commission (ACC) in Bangladesh claims Siddiq pressured Sheikh Hasina into granting the land, accusations her supporters dismiss as baseless.
Wider implications for Labour
Siddiq’s resignation has reignited scrutiny over Labour’s ties to the Awami League, Bangladesh’s former ruling party. Critics, including anti-corruption advocates, have called for greater transparency, highlighting allegations of corruption and human rights abuses under the Awami League’s regime.
Social media posts and campaign materials suggest a close relationship between Labour and the Awami League, with Bangladeshi supporters playing a notable role in Labour's electoral victories. These revelations have led to calls for the party to reexamine its associations with the Awami League.
Siddiq, who had been Labour’s City minister with responsibility for illicit finance and corruption, is best known for her campaign to secure the release of her constituent Nazanin Zaghari-Ratcliffe, detained in Iran for six years.
