Tulip Siddiq resigns as Treasury minister

UK Treasury Minister Tulip Siddiq has resigned amid pressure from an anti-corruption investigation in Bangladesh. This followed questions about her relationship with the aunt of the ousted Bangladeshi prime minister last year, and she had proactively reported herself to the prime minister’s standards advisor, Sir Laurie Magnus.

Sir Magnus stated that he “found no evidence of any impropriety,” but that Siddiq’s failure to be more alert to the “potential reputational risks” of her relationship with her aunt was “regrettable.” Siddiq stated that continuing in her role would be a “distraction” for the government, but she maintained that she had done nothing wrong. Prior to announcing her resignation, Siddiq had become embroiled in a second investigation in Bangladesh.

Conservative leader Kemi Badenoch said the prime minister had “prevaricated and dragged his feet” to protect her. Sir Keir Starmer, in his letter accepting Siddiq’s resignation, stated that the “door remains open” for her. Siddiq had served as Economic Secretary to the Treasury, with responsibilities including tackling corruption in UK financial markets. Last month, she became embroiled in an investigation alleging that her family had siphoned off up to £3.9 billion from infrastructure spending in Bangladesh.

Her aunt is former Bangladeshi Prime Minister Sheikh Hasina, leader of the Awami League, who went into exile after being ousted last year. Siddiq, the Labour MP for Hampstead and Kilburn, has been under scrutiny for her use of properties in London linked to allies of her aunt. One flat in King’s Cross was reportedly gifted to her by an individual linked to the recently ousted Bangladeshi government. In 2022, Siddiq denied that the flat was a gift, insisting that it was purchased by her parents, and threatened legal action against a newspaper to stop publication of the story. Labour sources later told the newspaper that the flat was gifted to Siddiq by a property developer allegedly linked to her aunt.

After Siddiq reported herself to the standards watchdog, Sir Magnus spent eight days investigating the allegations. In his letter, he said that Siddiq “acknowledged that, for a considerable period, she was not aware of the source of the ownership of her flat in King’s Cross, despite having at the time signed a land registry transfer form relating to the gift.” He said that the MP “remained of the view that the flat was gifted to her by her parents, who had purchased it from the previous owner.” This led to the public being “inadvertently misled” about the identity of the donor of the flat, Sir Magnus added. Sir Magnus stated that it was an “unfortunate misunderstanding” that led to Siddiq publicly correcting “the source of her ownership” after becoming a minister.

“Due to a lack of records and the passage of time, I have unfortunately not been able to obtain full reassurance in relation to all the matters reported in the media concerning UK properties,” Sir Magnus said in his letter. “However, I have found no evidence that Ms Siddiq and/or her husband acted improperly in the ownership or occupation of the London properties that have been the subject of media attention.” “Similarly, I have found no indication of any unusual financial arrangements involving the Awami League (or its affiliates) or Bangladesh in Ms Siddiq’s ownership or occupation of the relevant properties.” “Furthermore, I have found no evidence that the financial assets disclosed to me by Ms Siddiq and/or her husband were derived from any unlawful source.”

In Bangladesh, an anti-corruption investigation is ongoing into a series of allegations made by Bobby Hajjaj, a senior political opponent of Siddiq’s aunt, Hasina. Court documents seen by the BBC show Hajjaj accusing Siddiq of helping her aunt inflate the price of a new nuclear power plant in Bangladesh in 2013 by helping her broker a deal with Russia. She attended the signing ceremony for the power plant and was photographed with Russian President Vladimir Putin. Sir Magnus said that Siddiq “explained the context of that visit” as being simply to “join family and enjoy city tour opportunities afforded by her aunt’s formal visit as head of state.” He said that Siddiq made it clear that she “was not involved in any intergovernmental discussions between Bangladesh and Russia, nor did she have any official role.” “I accept this at face value,” he said, “but it should be noted that the visit may form part of the Bangladeshi investigation.”

Sir Magnus added that Siddiq was “a prominent member of one of the leading families in Bangladeshi politics,” which “exposed her to accusations of impropriety arising from her association.” “Given the nature of Ms Siddiq’s ministerial responsibilities... it is regrettable that she was not more alert to the potential reputational risks to her and to the government arising from her close family connections to Bangladesh,” he said. Sir Keir Starmer said in his letter to Siddiq that he was “sadly” accepting her resignation and thanked her for her “dedication” during her time as a minister. He said that Sir Magnus had assured him that “he had found no breach of the ministerial code of conduct, nor any evidence of financial impropriety on the part of [Siddiq].” Sir Keir's Holborn and St Pancras constituency neighbours Tulip Siddiq's Hampstead and Kilburn seat. Both were first elected as MPs in 2015 and have maintained a close working relationship.

Labour MP Emma Reynolds has been appointed as the new Economic Secretary to the Treasury to replace Siddiq. Reynolds first became an MP in 2010 but lost her seat in 2019. After a period as managing director at a financial and professional services lobbying firm, she returned to parliament in the 2024 general election. Prior to her resignation, Siddiq had become embroiled in a second investigation in Bangladesh. An “First Information Report” has been filed by the Bangladesh Anti-Corruption Commission, which has been seen by the BBC. The document names Tulip Siddiq as part of allegations against Sheikh Hasina and her government. The Anti-Corruption Commission accuses Siddiq of helping her mother, Rehana Siddique, influence Hasina to “abuse her power to obtain a plot of land in the high-value diplomatic zone of East Purbachal New Town.” The document states that Rehana Siddique “concealed her ownership of the property in the Dhaka city RAJUK area.”

Regarding Tulip Siddiq, the document states: “Ms Tulip Rizwana Siddiq… using her special power, directly influenced and assisted the former Prime Minister of the People’s Republic of Bangladesh, Ms Sheikh Hasina… in influencing her abuse of power, as the highest government official and public servant, in criminal breach of trust, and through her, influencing public servants in charge of project allocation.” A spokesperson for Tulip Siddiq said: “There is no evidence to support these allegations. Tulip Siddiq has not received any contact about this matter and completely denies these claims.”