Minister Louise Haigh quits after fraud offence revealed

Reuters Louise Haigh, who has bright red hair and is wearing a blue coat, seen outside BBC Broadcasting HouseReuters
Haigh said she was "sorry" to leave the Cabinet "under these circumstances"

Louise Haigh has resigned as transport secretary after it emerged she pleaded guilty to a fraud offence a decade ago.

Downing Street has named justice minister Heidi Alexander as her replacement.

Haigh has admitted telling police in 2013 she had lost her work mobile phone in a mugging, but later found it had not been taken.

She was given a conditional discharge by magistrates, following the incident which happened before she became an MP.

Haigh's is the first resignation from Sir Keir Starmer's government and the 37-year-old said her appointment as the “youngest ever” female cabinet minister “remains one of the proudest achievements of my life”.

UK Parliament Headshot of Heidi Alexander, who has shoulder-length grey hair and wears a navy blazer and a mint green top.UK Parliament
Heidi Alexander has been appointed transport secretary

The new transport secretary, Heidi Alexander, returned to the Commons for a second stint as an MP in July this year after standing down in 2018.

She spent more than three years as London’s deputy mayor for transport under Sadiq Khan and was also deputy head of Transport for London.

News of Haigh's conviction emerged on Thursday evening, in reports by the Times and Sky News.

Haigh issued a statement giving her version of the 2013 incident, which happened when she was working as a public policy manager for insurance company Aviva.

She had reported a "terrifying" mugging in London to police and told them her work mobile phone had been among items stolen, but later found the handset in a drawer at home.

Turning on the phone "triggered police attention", she said, she was called in for questioning and advised not to comment by her solicitor, before the matter was taken to magistrates' court for making a a false report to police.

Haigh said: "Under the advice of my solicitor I pleaded guilty – despite the fact this was a genuine mistake from which I did not make any gain."

Magistrates handed down a conditional discharge - the "lowest possible outcome" - six months before becoming an MP in the 2015 general election.

However, the Times claims this row relates to more than one mobile phone being stolen or going missing.

The BBC understands Haigh was unaware of any investigation by her former employer, Aviva, involving more than one mobile phone, as reported by the newspaper.

Aviva is not commenting on the story.

Disclosure

On Friday, Haigh sent a resignation letter to Sir Keir, saying she did not want to become a distraction and Labour would be "best served by my supporting you from outside government”.

In response, Sir Keir said Haigh had made “huge strides” as transport secretary to take the rail system back into public ownership, and thanked her for her work.

Whitehall sources told the BBC the transport secretary declared her spent conviction to Sir Keir when he appointed her to his shadow cabinet in 2020, when the Labour Party was in opposition.

She did not tell the government's propriety and ethics team about it when she became a member of the cabinet after Labour won July's general election.

She believed it was sufficient to have disclosed her spent conviction to Sir Keir when Labour was in opposition, the BBC has been told.

But Downing Street has refused to say what Sir Keir knew about Haigh's conviction before stories about it appeared in the media on Thursday evening.

Questioned for 25 minutes by reporters, the PM's official spokesman would say only that Sir Keir had accepted Haigh's resignation after "further information" emerged.

Spent convictions remain on an individual's criminal record for life, but they do not have to reveal them in job applications, under the Rehabilitation of Offenders Act.

A Conservative Party spokesman said: “Louise Haigh has done the right thing in resigning. It is clear she has failed to behave to the standards expected of an MP.

"In her resignation letter, she states that Keir Starmer was already aware of the fraud conviction, which raises questions as to why the prime minister appointed Ms Haigh to Cabinet with responsibility for a £30bn budget?

"The onus is now on Keir Starmer to explain this obvious failure of judgement to the British public."

'Rogue operator'

Haigh was responsible for one of the government's flagship policies, the re-nationalisation of the country's rail network under Great British Rail.

However, she was also the first cabinet minister the PM publicly rebuked, over remarks about P&O Ferries last month.

Haigh described P&O Ferries as a "rogue operator" and urged people to boycott the company, sparking a row with the ferry company's parent operation DP World.

When it threatened to boycott a major investment summit in response, Sir Keir said Haigh's comments were "not the view of the government".

Born in 1987 in Sheffield, Haigh studied politics at Nottingham University and law at Birkbeck, University of London.

She worked as a shop steward for the union Unite and as a Metropolitan Police officer in London's Lambeth borough before entering politics.

She has been the MP for Sheffield Heeley since 2015, and held a number of shadow ministerial and shadow cabinet roles before becoming transport secretary when Labour won the election nearly five months ago.