Tulip Siddiq replaced by Emma Reynolds despite ‘no breach of ministerial code’ – as Torsten Bell also joins government

Tulip Siddiq has resigned as a Treasury minister after becoming embroiled in an anti-corruption probe in Bangladesh, being replaced by Emma Reynolds  – despite the Prime Minister saying there had been “no breach of the ministerial code”.

In a statement, Siddiq said she had acted with “full transparency”, adding that she had decided to resign as Economic Secretary to the Treasury as continuing in the role would be a “distraction” from the work of the government.

In a letter to Siddiq, the Prime Minister said: “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.

“I want to thank you for self-referring to the Independent Adviser and for your full co-operation with the establishment of facts. 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.”

It follows Siddiq being named in an anti-corruption investigation by authorities in Bangladesh, where Siddiq’s aunt was previously prime minister. A spokesperson for the MP previously told the BBC earlier this month “no evidence” had been presented over the claims, and Siddiq “totally refutes” the claims.

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In her resignation letter, Siddiq said her family connections “were a matter of public record”.

“After extensive consultation with officials, i was advised to state in my declaration of interests that my aunt is the former Primer Minister of Bangladesh and to recuse myself from matter relating to Bangladesh and 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 Traesury 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.”

Emma Reynolds, Siddiq’s replacement

Reynolds, the MP for Wycombe, was previously an MP between 2010 to 2019, before being elected again in the 2024 general election. She was serving as pensions minister before her appointment.

Meanwhile Torsten Bell, the former head of living standards think tank the Resolution Foundation who became an MP in July, was promoted to fill Reynolds’ spot in the DWP, joining the government for the first time.

One MP told LabourList: “They’re both excellent additions. Emma has a strong background in financial services. I’m really happy they’ve both been appointed.”

It comes on a difficult day for the government, with continued media criticism and speculation over the future of Chancellor Rachel Reeves.

But senior figures will hope the decision draws a line under the media furore over Siddiq, which has dragged on amid further claims as well as criticism from the UK political opposition, particularly given Siddiq’s role overseeing financial conduct.

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