Louise Haigh has resigned as transport secretary after it emerged she pleaded guilty to a fraud offence a decade ago.
Downing Street has named justice minister Heidi Alexander as her replacement.
Haigh has admitted telling police in 2013 she had lost her work mobile phone in a mugging, but later found it had not been taken.
She was given a conditional discharge by magistrates, following the incident which happened before she became an MP.
Haigh’s is the first resignation from Sir Keir Starmer’s government and the 37-year-old said her appointment as the “youngest ever” female cabinet minister “remains one of the proudest achievements of my life”.