A Conservative minister will face no further action over accusations of Islamophobia, Rishi Sunak has announced.
The prime minister’s ethics adviser Sir Laurie Magnus said it was not possible to determine whether Mark Spencer made comments about Tory MP Nusrat Ghani's faith during a 2020 government reshuffle.
Mr Sunak said the investigation had been “an unsatisfactory experience for both ministers involved”.
But the prime minister’s adviser Sir Laurie criticised "shortcomings" in minister Mark Spencer's response to her Islamophobia allegations.
He should have "taken more care" over a series of tweets in which he "implied without evidence" that a previous investigation "had considered and dismissed Ms Ghani's concerns", Sir Laurie said.
Last year Tory MP Nusrat Ghani said that when she lost her job as a transport minister she had been told that her “Muslimness” had been raised as a problem.
She accused Boris Johnson’s Downing Street of holding her to a “higher threshold of loyalty than others because of my background and faith”.
In an interview with The Sunday Times, she said: “It was like being punched in the stomach.”
“I felt humiliated and powerless. I was told that at the reshuffle meeting in Downing Street that ‘Muslimness’ was raised as an ‘issue’, that my ‘Muslim women minister’ status was making colleagues uncomfortable and that there were concerns that I wasn’t loyal to the party as I didn’t do enough to defend the party against Islamophobia allegations.
“When I challenged whether this was in any way acceptable and made clear there was little I could do about my identity, I had to listen to a monologue on how hard it was to define when people are being racist and that the party doesn’t have a problem and I needed to do more to defend it.
“It was very clear to me that the whips and No 10 were holding me to a higher threshold of loyalty than others because of my background and faith.”
In his report, ethics adviser Sir Laurie said: “Despite a review of considerable evidence, it has not been possible to draw a clear picture of what was discussed between Mr Spencer and Ms Ghani during two meetings which both agree took place on 4th and 23rd March 2020. These discussions are central to the allegations made.
“Ms Ghani and Mr Spencer have differing accounts of these meetings, with different recollections of what was said. Each has provided evidence (including some contemporaneous notes) to support their respective accounts, but given the differing evidence presented to me, I am not able to conclude with sufficient confidence what was or was not said at these two meetings.”
In a letter responding to his advisor, Mr Sunak said: “I am glad that you have examined this dispute so thoroughly. I take seriously the need to treat others with respect and to avoid any suggestion of prejudice.
“As you say, this has been an unsatisfactory experience for both Ministers involved. But in the absence of clear evidence, it would not be right to take further action. I have spoken to both Ministers and encouraged them to heed your advice to pull together in the finest tradition of public service.”
Angela Rayner, Labour's deputy leader, described the prime minister’s approach as “toothless”.
"It's taken three years for a broken system to reach this unsatisfactory conclusion.
"After all the denials, Mark Spencer was found to have misled the former prime minister and the public but still considered fit to be a minister by Rishi Sunak.
"Today's report is damning for the Conservative Party. Even now, they have still not come up with or adopted a definition of Islamophobia after their own whitewash investigation into institutional Islamophobia failed to consult a single Muslim member.
"Despite promising integrity, professionalism and accountability at every level, Rishi Sunak has kept the rotten, toothless ethics regime of his predecessors and failed to set a standard that the public would expect."
In a statement, Ms Ghani said: "Sir Laurie's report is very clear that my evidence was credible and 'consistent'. I'm relieved that the report acknowledges that the previously denied 4th March 2020 meeting did take place and was central to the matter, as well as that Twitter statements were published 'without evidence'.
“There is no criticism or doubt expressed regarding my version of events. Others will have to explain the report noting the 'omissions', 'shortcomings’, 'incomplete information', 'inaccurate briefings' and claims 'implied without evidence' in their actions and story.
“We all serve at the Prime Minister's choosing and there is no shame in a political career ending. But to be told your faith and identity is the reason for it cannot be acceptable in any way.
“The impact of being told this was devastating and my motivation in pursuing the complaint was to ensure it wasn't buried, but that it ended with me so that no other colleague would have to endure anything similar.
“I would like to thank the Prime Minister and Sir Laurie for publishing the report after three years. As I said last year, my party is better and bigger than this whole sorry episode which has only been bearable due to the support of so many Conservative colleagues.”