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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 £30bn budget?
"The onus is now on Keir Starmer to explain this obvious failure of judgement to the British public."
Ms Haigh appeared before Camberwell Green Magistrates Court after officers referred her case to the Crown Prosecution Service.
She pleaded guilty to fraud by misrepresentation and said that she regretted remaining silent on advice from a solicitor while being interviewed by officers who detected her work phone being switched on.
The incident allegedly cost the now Labour MP her job as a public policy manager at Aviva.
But despite her insisting this was a 'genuine mistake', at least two sources suggest the Transport Secretary wanted to be upgraded to a newer phone being rolled out in the company at the time.
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