Louise Haigh has resigned from her position as Transport Secretary, just hours after it was revealed that she had been convicted of fraud related to a missing work phone. Haigh, who has been a prominent figure in Keir Starmer’s shadow cabinet, announced her decision in a letter to the Labour leader, explaining that the controversy surrounding the incident would become a “distraction” from the government’s work.

The resignation follows the revelation that Haigh had pleaded guilty to fraud by false representation in 2014 after an investigation by her former employer, Aviva, into the disappearance of a company phone. According to reports from Sky News and The Times, the investigation by Aviva was supported by a police inquiry into the incident.

In a statement, Haigh clarified the circumstances surrounding the conviction. She explained that while working at Aviva in her mid-20s, she was mugged during a night out and reported the theft to the police, including a work phone. A replacement phone was issued to her, but when she later found her original phone and turned it on, the police summoned her for questioning. Haigh admitted that she made a “mistake” by not informing Aviva immediately that she had found the phone.

In her resignation letter to Starmer, Haigh acknowledged the error and emphasized that the issue would be a distraction from her work in government. “Whatever the facts of the matter, this issue will inevitably be a distraction from delivering the work of this government,” she wrote.

In response to her resignation, Starmer expressed his gratitude for Haigh’s efforts during her time in the cabinet, particularly her work on rail nationalisation. “I know you still have a huge contribution to make in the future,” Starmer said, thanking her for her dedication to Labour’s policies, especially in public transport.

Despite the resignation, Haigh’s conviction has been spent and no longer appears on her record. The incident was disclosed when she was appointed to the shadow cabinet in 2020, although she had never publicly discussed it until now.

The details of the investigation remain somewhat unclear. The Times reported that Aviva had initiated the investigation after Haigh claimed multiple company phones had gone missing or were stolen on previous occasions. According to the newspaper, the police were provided with information on more than one instance, but the criminal charge was specifically related to the missing phone.

However, Sky News cited sources suggesting that Haigh may have falsely reported the theft to acquire a newer model of phone from her employer. A close source to Haigh, however, dismissed this as “absolute nonsense,” maintaining that the incident was an honest mistake.

Haigh, who was the youngest member appointed to Starmer’s shadow cabinet, became the first individual to leave the cabinet following Labour’s election victory in 2024. In her resignation letter, she thanked Starmer for his support and reaffirmed her commitment to the party’s political goals. She also expressed pride in the work accomplished since Labour’s election win, saying, “I am sorry to leave under these circumstances, but I take pride in what we have done.”

Haigh, who has served as the MP for Sheffield Heeley since 2015, was appointed as Shadow Policing Minister under former leader Jeremy Corbyn. In 2020, she took on the Northern Ireland brief before being named Transport Secretary. In her role, she oversaw key government policies, including efforts to nationalise the rail system and secure a pay settlement for striking train drivers earlier in her tenure.

Her resignation follows a recent controversy in which Haigh called for a boycott of P&O Ferries, a move that led to a public rebuke from Downing Street. The company’s Dubai-based owner, DP World, had threatened to pull a planned £1 billion investment in the UK in retaliation.

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