Tulip Siddiq resigns as Treasury minister

Tulip Siddiq, the UK Treasury minister, has resigned amid mounting pressure over a corruption investigation in Bangladesh. This follows questions about her links to the aunt of Bangladesh's ousted prime minister last year, which she had proactively reported to the prime minister’s ethics advisor, Sir Laurie Magnus.

Sir Magnus stated he had “found no evidence of impropriety,” but it was “regrettable” that Siddiq was not alert to the “potential reputational risks” arising from her links to her aunt. Siddiq stated that continuing in her current role would be a “distraction” for the government, but maintained that she had done nothing wrong. Before her resignation announcement, Siddiq's name had surfaced in a second investigation in Bangladesh.

Conservative leader Kemi Badenoch stated that the prime minister had “prevaricated and delayed in protecting her.” In a letter accepting Siddiq's resignation, Sir Keir Starmer stated that her “door remains open.” Siddiq had served as the Economic Secretary to the Treasury, responsible for combating corruption in UK financial markets. Last month, she was caught up in an investigation alleging her family had misappropriated up to £3.9 billion from infrastructure spending in Bangladesh.

Siddiq's 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 also faced scrutiny over the use of a London property linked to allies of her aunt. Sir Magnus spent eight days investigating the allegations after Siddiq reported herself to the standards watchdog. In the letter, Sir Magnus stated that Siddiq “acknowledged that for a considerable period, she was unaware of the source of the ownership of her flat in King's Cross, although she signed the Land Registry transfer form relating to the gift at the time.”

He also stated that the MP “remains of the view that the flat was gifted to her by her parents, having been purchased by them from the previous owner.” Sir Magnus added that this led to the public being “inadvertently misled” on the issue of the flat’s donor. Sir Magnus stated this was an “unfortunate misunderstanding” which led to Siddiq “publicly correcting the source of her ownership after she became a minister.” Sir Magnus stated in the letter: “Due to a lack of records and the passage of time, I am, unfortunately, unable to obtain full reassurance on all matters relating to the UK property that have been reported in the media.”

Sir Magnus also stated in the letter: “However, I have found no evidence of any impropriety on the part of Ms Siddiq and/or her husband in respect of the London properties they own or have occupied, which have been the subject of media attention.” “Equally, I have found no indication that any unusual financial arrangements involving the Awami League (or its affiliated organisations) or the government of Bangladesh were involved in respect of the properties that Ms Siddiq has owned or occupied.” “Furthermore, I have found no evidence that the financial assets disclosed to me by Ms Siddiq and/or her husband have derived from any illicit means.”

In Bangladesh, a corruption investigation is underway following a series of allegations made by Bobby Hajjaj, a senior political opponent of Siddiq’s aunt Hasina. Court documents seen by the BBC show that Hajjaj accused Siddiq of helping her aunt to inflate the price of a new nuclear power plant in Bangladesh in a deal with Russia in 2013. She attended the signing ceremony for the plant and was photographed with Russian President Vladimir Putin. Sir Magnus stated that Siddiq “explained the context” of that visit, which was “simply to reunite with family and to take advantage of the city tours offered to her aunt as part of her official visit as head of state.”

He also said that Siddiq made it clear that she “had no involvement in any inter-governmental discussions between Bangladesh and Russia, nor any official role.” “I accept this at face value,” he said, “but it should be noted that the visit could form part of the Bangladeshi investigation.” Sir Magnus added that Siddiq was a “prominent member of one of the main families in Bangladeshi politics,” which “exposed her to allegations of impropriety by association.” “Given the nature of Ms Siddiq’s ministerial responsibilities…it is regrettable that she was not alert to the potential reputational risks that her close family connections to Bangladesh could pose for her and the government,” he said.

In a letter to Siddiq, Sir Keir stated that he was “sad” to accept her resignation and thanked her for her “dedication” during her time as a minister. He said that Sir Magnus had assured him that “he has found no breach of the Ministerial Code on the part of [Siddiq], nor any evidence of financial impropriety.” Sir Keir's Holborn and St Pancras constituency is adjacent to Tulip Siddiq's Hampstead and Kilburn constituency. They were both 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, before losing her seat in 2019. She returned to parliament in the 2024 general election after a period as managing director at a financial and professional services lobbying firm. Before her resignation, Siddiq’s name had surfaced in a second investigation in Bangladesh. The Anti-Corruption Commission of Bangladesh has filed a “First Information Report,” which has been seen by the BBC. The document names Tulip Siddiq as part of the allegations against Sheikh Hasina and her government. The Anti-Corruption Commission accuses Siddiq of assisting her mother, Rehana Siddiq, in influencing Hasina to “abuse her power to obtain a piece of land in the high-value diplomatic zone of East Purbachal New Town.”

The document states that Rehana Siddiq “concealed her ownership of properties in the RAJUK area of Dhaka city.” Regarding Tulip Siddiq, the document states: “Ms Tulip Rizwana Siddiq… used her special power to directly influence and assist the former Prime Minister of the People’s Republic of Bangladesh, Ms Sheikh Hasina… to influence her abuse of power as the head of the government and public servant, to criminally breach trust, and through her, influence the public servants responsible for project allocation.” A spokesperson for Tulip Siddiq stated: “There is no evidence to support these allegations. Nobody has contacted Tulip Siddiq about this, and she completely refutes the allegations.”