Why Louise Haigh's Resignation Could Become A Bigger Problem For Starmer

Louise Haigh’s resignation as the transport secretary is raising serious questions for Keir Starmer.

The Labour MP quit suddenly on Friday morning, less than 12 hours after reports of her 2014 fraud conviction emerged.

While the prime minister was quick to draw a line under the issue and appoint a new MP to Haigh’s role, political pundits are still scratching their heads as to what really happened – and what it means for Starmer’s government.

Here’s what you need to know.

Recap: Why did Haigh quit?

Haigh told police in 2013 she was mugged and her mobile phone stolen.

She later discovered it at home and turned on the device, which alerted the police. 

She was then brought in for questioning, and her solicitor told her not to comment during that interview, advice she has since said she regrets following.

Haigh had to appear before the magistrates court in 2014 where she pleaded guilty to fraud.

The court found her guilty but did not impose a punishment, which Haigh said was the “lowest possible outcome”.

Haigh wrote in a letter to the PM that it was a “genuine mistake” where she did not gain anything.

Why might this be a big deal for Starmer?

This is the prime minister’s first cabinet resignation since Labour won the election by a landslide just five months ago.

It remains unclear if Haigh jumped before she was pushed out of Starmer’s government – some commentators have suggester her rapid resignation is another sign of the PM’s now-famous ruthlessness.

Haigh was already under pressure having caused a split in his cabinet a few weeks ago.

She told the press she was still boycotting P&O Ferries over their 2022 mass sackings in October.

However, the company were set to appear at Labour’s landmark business summit just days later.

Now her historic fraud conviction has emerged, critics have asked just how much Starmer knew when he appointed Haigh to his shadow cabinet in 2020.

A Conservative Party spokesperson 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.”

The prime minister’s spokesperson refused to tell journalists just how much Starmer knew about the criminal conviction beforehand.

He said: “The prime minister has accepted her resignation, and she has acknowledged that the issue will inevitably be a distraction on delivering the work of government.”

When further pressed, the spokesperson said: “Following further information emerging the prime minister has accepted Louise Haigh’s resignation.”

He did not say what that new information was, just that he would not “get into individual conversations” and that ministers had to follow the ministerial code.

Asked whether she asked to resign or offered, he said: “She resigned.”

Starmer himself was highly critical of the last government when Boris Johnson was fined over the Covid lockdown breach, He posted on X: “You cannot be a lawmaker and a lawbreaker.”

What does it mean for the transport department?

Haigh was seen a real success story in her role.

The youngest member of the cabinet, she had renationalised rail, brought buses back into public ownership, and secured £1bn investment in buses and £500m in pot holes.

She tried to bring settlements to the HS2 projects, too.

The RMT union leader Mick Lynch even released a statement commending her work this morning, saying: “Louise achieved a great deal during her time as Transport Secretary including laying the foundations for the public ownership of our railways—a landmark achievement that prioritises the needs of passengers and workers over private profit.

“Her vision and dedication have set the stage for a fairer, more efficient, and publicly accountable transport system.”

What happens now?

Starmer will have to do a mini reshuffle, having moved justice minister Heidi Alexander into Haigh’s role.

It is the latest change to the top team Starmer wanted just before the election in July.

Starmer also lost his first choice as chief of staff, Sue Gray, last month amid claims of in-fighting in Downing Street.

And in the summer, both Thangam Debbonaire and Jonathan Ashworth – who were expected to get top cabinet jobs  – unexpectedly lost their seats.