UKDespite Labour’s commitment to ethical governance, the Siddiq episode reveals gaps in its approach to managing perceived conflicts of interest
The Labour government has faced its second high-profile resignation after Tulip Siddiq, the economic secretary to the Treasury, stepped down over allegations surrounding her family ties and property acquisitions. While Siddiq was cleared of breaching the ministerial code, she acknowledged that her continued presence in the role could prove a distraction for the government’s agenda.
This development raises questions about the government’s handling of ethics—an area it had promised to reform and champion. Despite Labour’s commitment to ethical governance, the Siddiq episode reveals gaps in its approach to managing perceived conflicts of interest.
A Pledge to Uphold Ethics
In the lead-up to the 2024 general election, Labour’s leader Keir Starmer positioned ethics as a cornerstone of his party’s agenda, criticizing the previous Conservative government for lapses in integrity. Labour promised to implement a new ethics and integrity commission to ensure higher standards across public office. While the government has since introduced a more robust ministerial code, the ethics commission remains absent, signaling incomplete progress on these promises.
The government’s commitment to transparency faced its first major test in November with the resignation of Transport Secretary Louise Haigh. Haigh stepped down following revelations about a decades-old conviction—an issue Starmer had been aware of prior to her appointment. By enforcing her resignation, Starmer set a precedent for high ethical standards, yet the protracted handling of Siddiq’s case has raised eyebrows about consistency.
Siddiq Maintains Innocence
The controversy surrounding Siddiq stemmed from allegations about her links to properties in London and her family’s connections to Bangladesh’s former ruling party. Sir Laurie Magnus, the prime minister’s adviser on ministerial standards, concluded that Siddiq had not violated the ministerial code. However, he noted that she should have been more “alert to potential reputational risks” tied to her familial associations.
Siddiq defended her actions, stating she had disclosed all relevant information about her family and personal interests when appointed in July. However, critics argue that the appearance of a conflict of interest should have been identified and addressed earlier, raising concerns about the government’s internal vetting processes.
Missed Red Flags
The ministerial code explicitly states that ministers must avoid both actual and perceived conflicts of interest. Given Siddiq’s disclosures, questions linger about why these potential issues were not flagged before her appointment. Reports suggest that Siddiq and Starmer share a close working relationship, but critics caution that personal loyalty should not outweigh the necessity for impartial oversight.
Ethical Leadership Under Scrutiny
Siddiq’s resignation adds to a series of challenges for Starmer’s government. Earlier controversies, such as the summer’s “freebie-gate” scandal, have fueled perceptions that Labour’s ethical compass may not be as robust as promised. Having criticized the previous administration for its ethical failings, Labour’s own missteps could undermine its credibility.
The handling of Siddiq’s case underscores the importance of proactive governance. If Labour is to maintain public trust, it must demonstrate a more consistent and transparent approach to upholding ethical standards. As the government navigates these challenges, Starmer faces mounting pressure to fulfill his pledge of restoring integrity to public office.
Allegations against Siddiq
The Labour MP has been under the scanner for using three properties in London linked to Hasina’s allies. One of the properties was given to her by a person connected with the now-ousted Bangladesh government, reports the Financial Times. However, in 2022, Siddiq denied that the flat was a gift and insisted that her parents had brought it for her. Back then, she threatened the Mail on Sunday with legal action.
The other properties in question are a £2.1 million house in north London, currently rented by Siddiq and owned by businessman Abdul Karim Nazim, an executive member of her aunt’s Awami League party’s UK branch, and a property in Hampstead that Siddiq was registered at. It was transferred to her then-teenage sister in 2009 by lawyer Moin Ghani, who has represented Hasina’s government.
The Labour MP was also named last month in an investigation into claims that her family was involved in brokering a 2013 deal with Russia for a nuclear power plant in Bangladesh in which large sums of money were embezzled. According to reports, up to £3.9 billion (Rs 41 crore) from infrastructure spending in Bangladesh was siphoned off “in collusion with Russian officials”.
Siddiq was a councillor in the London Borough of Camden at the time. She was present during the signing ceremony and even pictured with Putin. However, she explained that it was a social visit, where she joined her family and enjoyed “the tourist access… facilitated as a result of her aunt’s official visit as head of state”.
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