Keir Starmer is under pressure from the Tories to sack Tulip Siddiq after the minister was accused of corruption.
Siddiq, the anti-corruption minister, is alleged to have been involved in brokering a deal with Russia for a nuclear power plant in Bangladesh in 2013, with billions of pounds reportedly embezzled in that agreement.
The minister’s aunt, Sheikh Hasina, was the prime minister of Bangladesh for more the 20 years. She was deposed last year and under investigation.
The current Bangladeshi leader Muhammad Yunus has since said the London properties Siddiq uses should be investigated, telling the Sunday Times they should be handed back to his government if acquired through “plain robbery”.
Siddiq is currently responsible for preventing corruption in the UK financial markets as the economic secretary to the Treasury.
She has denied all allegations against her and voluntarily referred herself to the ministerial standards adviser Sir Laurie Magnus, who is conducting a “fact-finding” exercise to see if “further action” is needed.
The prime minister said last week that he still had confidence in her and that he believes she had “acted entirely properly”.
But the Tories say Siddiq still needs to go.
The Conservative leader Kemi Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption. Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Badenoch continued: “The prime minister tried to make a big deal of his commitment to standards and integrity. His weak leadership on Siddiq suggests he is not as bothered by integrity as he claims.”
Shadow chancellor Mel Stride backed his boss this morning, telling Sky News: “It’s going to be really impossible for [Siddiq] to do that job under current circumstances.
“So she should step down, and the prime minister needs to get a grip of that.”
Science secretary Peter Kyle told Sky News this morning that Starmer would follow the advice of the authorities if Siddiq was found to be guilty.
But he said: “I think she’s done exactly the right thing, I think she’s referred herself, that inquiry needs to go through, I think that’s the appropriate way forward.
“I’m giving it all the space it needs to do and I will be listening for the outcome, as the prime minister will.”
Hitting out at the Tories, Kyle said he called for an investigation into then home secretary Priti Patel over allegations of bullying in 2020, adding: “They had to be dragged to that inquiry.
“I gave the inquiry space to go through it, the results came out, she was found guilty, and no action happened.”
He continued: “I think the right way to go through this is to allow the authorities to investigate, we’ve given more powers to those authorities to do independent investigations.
“And you know full well when it comes to Keir Starmer, he will listen to what the authorities say.”
Further pressed on Times Radio, Kyle did not respond directly when asked: “Does the government have full confidence in Tulip Siddiq?”
He said he had “full confidence in the process” and that Siddiq’s situation is “complicated”.
In her letter to Magnus, Siddiq insisted she has done “nothing wrong”.
Siddiq said: “In recent weeks I have been the subject of media reporting, much of it inaccurate, about my financial affairs and my family’s links to the former government of Bangladesh.
“I am clear that I have done nothing wrong.
“However, for the avoidance of doubt, I would like you to independently establish the facts about these matters.
“I will obviously ensure you have all the information you need to do this.”
Siddiq pulled out of a planned trip to China with the chancellor Rachel Reeves so she could be on hand to aid Magnus with his probe.