Tulip Siddiq has resigned as a Treasury minister after controversy over links to her aunt’s ousted political movement in Bangladesh.

In a letter to the prime minister, the Labour MP said that while she had “not breached the ministerial code”, it is clear that continuing in her post would be “a distraction from the work of the government”.

Ms Siddiq has been under pressure over allegations about properties linked to her aunt Sheikh Hasina, who was deposed as Bangladesh’s longest-serving prime minister in August.

Ms Siddiq referred herself to the prime minister’s ethics watchdog last week.

In his reply, Sir Keir Starmer said he has accepted her resignation “with sadness”, and added: “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.”

He praised her for making the “difficult decision” to resign nonetheless, and added that “the door remains open for you” going forward.

Downing Street has announced that Wycombe MP Emma Reynolds has been appointed to replace her in the Treasury, and Torsten Bell will take her previous role in the Department for Work and Pensions.

It is alleged that Ms Siddiq lived in properties linked to allies of Ms Hasina.

Ms Siddiq previously insisted she had “done nothing wrong”, although Conservative leader Kemi Badenoch called on Sir Keir Starmer to sack her over the weekend.

Ms Hasina was ousted from office in August following an uprising against her 20-year leadership and fled to India.

Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.

She had been due to join a delegation heading to China last week, but stayed in the UK to fight to clear her name.

Read more:
What are the allegations against Tulip Siddiq?

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.