Siddiq was adamant she had ‘done nothing wrong’ and was cleared by the parliamentary watchdog, independent adviser on ministerial standards, finding she did not breach the ministerial code.

Emma Reynolds, Labour MP for Wycombe has replaced Siddiq at the Treasury as economic secretary with responsibility for the City and the anti corruption brief. She moves from the Department of Work and Pensions where she held a dual brief for DWP and HMRC.

Although the watchdog cleared Siddiq, in a three page letter the watchdog chair Sir Laurie Magnus stated: ‘A lack of records and lapse of time has meant that, unfortunately, I have not been able to obtain comprehensive comfort in relation to all the UK property-related matters referred to in the media.

‘However, I have not identified evidence of improprieties connected with actions taken by Ms Siddiq and/or her husband in relation to their ownership or occupation of the London properties that have been the subject of press attention.’

Siddiq provided ‘considerable background information’ on the tax treatment and funding arrangements, but Sir Laurie did say ‘in light of the age of the transactions’ some of the information was ‘not available’.

Siddiq has confirmed she will ‘continue to support in any way I can from the backbenches’ but will be replaced by Emma Reynolds,.

Sir Laurie Magnus conducted the independent review into the finances and living arrangements of Siddiq, ‘both present and historic’, said Siddiq.

In a letter to Starmer, Siddiq said: ‘My family connections are a matter of public record, and when I became a minister I provided the full details of my relationships and private interests to the government. After extensive consultation with officials, I was advised to state in my declaration of interests that my aunt is the former prime minister of Bangladesh and to rescue myself from matters relating to Bangladesh to avoid any perception of 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.’

Although being found innocent of breaching the Ministerial Code, Siddiq said that ‘continuing in my role as economic secretary to the Treasury is likely to be a distraction from the work of the government.’

Prime minister Keir Starmer said he had accepted Siddiq’s resignation ‘with sadness’, adding: ‘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.’

MP Torston Bell has taken over Reynolds' brief as minister for pensions with some Treasury responsibilities. The economist was elected at the July general election and before going into politics was chief executive of the Resolution Foundation. economist.

‘I have done nothing wrong’, says Treasury minister | 7 Jan 2025

Sir Laurie Magnus letter

Exchange of letters between the Prime Minister and Tulip Siddiq MP - GOV.UK