Louise Haigh quits as transport secretary over phone offence
The decision came after reports on Thursday revealed that Louise Haigh had pleaded guilty in 2014 to providing false information to police.
In a resignation letter released by Downing Street, Haigh, 37, stated she did not want to become a distraction for the government. (Photo: Getty Images)
By EasternEyeNov 29, 2024
LOUISE HAIGH resigned as the transport secretary on Friday after admitting to a past criminal offence committed before her time as a member of parliament.
Her resignation marks the first by a cabinet minister under Keir Starmer's Labour government since the party won the general election in July.
The decision came after reports on Thursday revealed that Haigh had pleaded guilty in 2014 to providing false information to police.
In 2013, she incorrectly reported her work mobile phone as stolen during a mugging but later found the device and failed to notify authorities.
Media outlets said she admitted to a fraud charge in court and was subsequently discharged without further action.
In a resignation letter released by Downing Street, Haigh, 37, stated she did not want to become a distraction for the government.
"I remain totally committed to our political project, but I now believe it will be best served by my supporting you from outside government," she wrote.
Starmer thanked Haigh for her contributions, particularly in advancing plans to return the country's railways to public ownership. "She made huge strides" in this area, Starmer noted.
Haigh had been overseeing the contentious HS2 high-speed rail project, which faced setbacks after key sections were cancelled by the previous Conservative government due to cost concerns. She also led efforts to renationalise struggling rail services, a policy approved by parliament last week.
Starmer's administration previously saw the departure of his chief of staff, Sue Gray, in October following significant media attention on her appointment.
UK life sciences sector contributed £17.6bn GVA in 2021 and supports 126,000 high-skilled jobs.
Inward life sciences FDI fell by 58 per cent from £1,897m in 2021 to £795m in 2023.
Experts warn NHS underinvestment and NICE pricing rules are deterring innovation and patient access.
Investment gap
Britain is seeking to attract new pharmaceutical investment as part of its plan to strengthen the life sciences sector, Chancellor Rachel Reeves said during meetings in Washington this week. “We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters.
Recent ABPI report, ‘Creating the conditions for investment and growth’, The UK’s pharmaceutical industry is integral to both the country’s health and growth missions, contributing £17.6 billion in direct gross value added (GVA) annually and supporting 126,000 high-skilled jobs across the nation. It also invests more in research and development (R&D) than any other sector. Yet inward life sciences foreign direct investment (FDI) fell by 58per cent, from £1,897 million in 2021 to £795 million in 2023, while pharmaceutical R&D investment in the UK lagged behind global growth trends, costing an estimated £1.3 billion in lost investment in 2023 alone.
Richard Torbett, ABPI Chief Executive, noted “The UK can lead globally in medicines and vaccines, unlocking billions in R&D investment and improving patient access but only if barriers are removed and innovation rewarded.”
The UK invests just 9% of healthcare spending in medicines, compared with 17% in Spain, and only 37% of new medicines are made fully available for their licensed indications, compared to 90% in Germany.
Expert reviews
Shailesh Solanki, executive editor of Pharmacy Business, pointed that “The government’s own review shows the sector is underfunded by about £2 billion per year. To make transformation a reality, this gap must be closed with clear plans for investment in people, premises and technology.”
The National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold £20,000 to £30,000 per Quality-Adjusted Life Year (QALY) — has remained unchanged for over two decades, delaying or deterring new medicine launches. Raising it is viewed as vital to attracting foreign investment, expanding patient access, and maintaining the UK’s global standing in life sciences.
Guy Oliver, General Manager for Bristol Myers Squibb UK and Ireland, noted that " the current VPAG rate is leaving UK patients behind other countries, forcing cuts to NHS partnerships, clinical trials, and workforce despite government growth ambitions".
Reeves’ push for reform, supported by the ABPI’s Competitiveness Framework, underlines Britain’s intent to stay a leading hub for pharmaceutical innovation while ensuring NHS patients will gain faster access to new treatments.
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