Hitachi blow as Louise Haigh quits as Transport Secretary

Louise Haigh walked away from her job as Transport Secretary after it emerged she pleaded guilty to a criminal offence related to incorrectly telling police that a work mobile phone was stolen in 2013.

Swindon South MP Heidi Alexander, Sadiq Khan's deputy transport mayor in London between 2018-2021. has been appointed in her place.

Ms Haigh said that she was mugged in London and gave police a list of stolen possessions, including a work phone when she reported the incident.

She said she later found the phone was still in her house.

In a letter to Sir Keir Starmer she said: “I should have immediately informed my employer and not doing so straight away was a mistake.

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“I appreciate that whatever the facts of the matter, this issue will inevitably be a distraction from delivering on the work of this government and the policies to which we are both committed.”

It is understood the incident was disclosed to Sir Keir when she joined the shadow cabinet.

The government has always said it is "committed" to keeping the factory open, and when she was shadow Transport Secretary Louise Haigh famously said that it could be saved "with the stroke of a pen". 

After she had moved into her role she said:  “I am committed to protecting rail manufacturing in the UK and developing a long-term strategy to secure the industry's future.

“Unlike the Conservatives, this Labour Government won’t sit on our hands. We are working at pace with Hitachi to safeguard jobs and the future of the site at Newton Aycliffe.

“And we’ll put an end to the boom and bust cycle in rail manufacturing – delivering a new dawn for the sector.”

Over 700 jobs still hang in the balance at the factory in Newton Aycliffe, months after the manufacturer first raised concerns of an impending production gap between contracts.

There have apparently been months of talks around a solution, but little has been said publicly. But Louise Haigh's appointment had given the whole situation a fresh impetus.

But the new revelations about her past made her role unsustainable - despite the fact that  Keir  Starmer has lost one of the most effective members of his new team.

Keir Starmer at Hitachi (Image: CHRIS BOOTH)

Ms Haigh pleaded guilty in court over the incident on the advice of a solicitor and magistrates gave her the “lowest possible outcome”, she said in a statement. It is understood that it was a fraud offence and that the conviction is now spent.

It has transpired that Ms Haigh’s employer at the time launched an investigation after she said that company mobile phones had been stolen or had gone missing on repeated occasions, the Times reported.

She was working for insurance giant Aviva at the time of the incident, according to the reports.

Ms Haigh has been Sheffield Heeley MP since 2015 and held a number of shadow ministerial and shadow cabinet roles before becoming Transport Secretary when Labour won the election in July. Before she entered politics she spent time as a special constable.

Sir Keir said in his reply to Ms Haigh that she had made “huge strides” as Transport Secretary to take the rail system back into public ownership through the creation of Great British Railways and investing £1 billion into vital bus services.

“I know you still have a huge contribution to make in the future,” he added.

Heidi Alexander campaigns with then Shadow Chancellor Rachel Reeves at the last local elections (Image: PA)

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 £30 billion budget?

“The onus is now on Keir Starmer to explain this obvious failure of judgment to the British public.”

But for Hitachi the focus will be entirely on the effect of the resignation on the future of the plant. The loss of Louise Haigh just as things were looking more positive is certainly a setback, but the Prime Minister will be keen to deal with it as quickly and effectively as possible, so bringing in Heidi Alexander with that same refreshed impetus and perhaps a brief to deflect attention with some quick results could even end up being a pre-Christmas plus for Hitachi.

A spokesman for the company declined to comment on the latest situation.