Transport Secretary Louise Hay has resigned after admitting she was a convicted fraudster over claiming a stolen phone.
The 37-year-old Labor Minister had previously said that she was robbed during a “terrifying” night in 2013, and provided police with a list of items missing from her handbag.
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She included her work mobile phone on that list, but discovered “after some time” that it had not actually been stolen.
At the time, Hay worked as director of public policy for insurance company Aviva.
Hay said she regretted the mistake and had pleaded guilty to a crime of misleading police.
This morning the Transport Secretary announced her resignation in a letter to Prime Minister Keir Starmer.
“I should have informed my employer immediately, and not doing so immediately was a mistake,” she wrote.
“I appreciate that whatever the facts of the matter, this issue will inevitably distract from carrying out the work of this government and the policies to which we are committed.
“I'm sorry to leave under these circumstances, but I'm proud of what we did.”
In his response, the Prime Minister wrote: “Thank you for everything you have done to deliver on this government’s ambitious transport agenda.
“You have made great strides to bring our railway system back into public ownership by creating Great British Railways, investing £1 billion in our vital bus services and reducing costs for motorists.
“I know you still have a great contribution to make in the future.”
The Guardian reported that Hay was granted a conditional discharge on charges of fraud by misrepresentation.
She said she was called to speak to police when the work phone was on.
Louise Hay's resignation letter in full
Dear Prime Minister,
As you know, in 2013 I was robbed in London. As a 24-year-old woman, the experience was terrifying.
Immediately afterwards, she reported the incident to the police.
I gave the police a list of my belongings that I thought were stolen, including my work phone.
After some time, I discovered that the phone in question was still at my house.
I should have informed my employer immediately, and not doing so immediately was a mistake.
I appreciate that whatever the facts of the matter, this issue will inevitably distract from the work of this Government and the policies to which we are committed.
I will always be grateful for the support you have given me, and I am very proud of what we have achieved since the election.
Just today, our Bill returning railways to public ownership received Royal Assent and became an Act of Parliament.
This is a once-in-a-generation fix to our railways that will change our country for the better.
The commitment made by our party leaders over decades has finally been implemented.
I'm proud that we have also taken the first steps to get buses back into the hands of passengers and local people, work that will be completed under the Bus Bill when it is drawn up next month.
Being appointed to your Cabinet as the youngest ever woman remains one of the proudest achievements of my life, but none as proud as the steps we have taken to improve the lives of the British people.
I remain fully committed to our political project, but I now believe that project is best served by my support for you from outside government.
I'm sorry to leave under these circumstances, but I'm proud of what we did.
I will continue to fight every day for the people of Sheffield Healy who I was elected first and foremost to represent and to ensure the rest of our platform is fully delivered.
Yours sincerely,
Louise
She said in a statement: “My lawyer advised me not to comment during that interview, and I regret following that advice.
“The police referred the matter to the Crown Prosecution Service and she appeared before Southwark magistrates.
“On the advice of my attorney, I pleaded guilty – despite the fact that this was a genuine mistake from which I gained nothing.”
Sky News quoted sources as saying that Hay submitted the false report to benefit personally and obtain a newer phone from the company.
Two sources claimed that she subsequently lost her job due to the incident.
At the time, Hay worked as a director of public policy at the insurance company Aviva.
She worked for the company between 2012 and 2015, after which she was elected as the MP for Sheffield Healy.
Hay appeared at Camberwell Green Court six months before the 2015 general election where she was elected to Parliament.
In her statement, Hay claimed that the court gave her the lowest possible outcome, which was to discharge her from service.
Her conviction is now considered “sealed.”
She announced her condemnation of Sir Keir Starmer in 2020 after he appointed her as Shadow Secretary of State for Northern Ireland.
Tory leader Nigel Huddleston has criticized the Prime Minister for appointing a convicted fraudster to his cabinet.
He said: “This is extremely worrying information about the person responsible for managing £30bn of taxpayers’ money.
“Keir Starmer has serious questions to answer about what he knew and when the person he appointed as transport secretary admitted to misleading the police.”
An Aviva spokeswoman said she had no comment.
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