Sue Gray has resigned as Keir Starmer’s chief of staff after a controversial three-month tenure, saying “intense commentary” around her position “risked becoming a distraction”.
The former civil servant said she had accepted a new role as the prime minister’s envoy for the regions and nations.
The move, just weeks ahead of the Autumn Budget, comes after Gray fielded criticism within Starmer’s inner circle that she wielded too much power in Downing Street and had alienated some colleagues.
It emerged last month that her taxpayer-funded salary was £3,000 more than the prime minister’s.
Gray said in a statement on Sunday: “Throughout my career my first interest has always been public service. However in recent weeks it has become clear to me that intense commentary around my position risked becoming a distraction to the government’s vital work of change.
“It is for that reason I have chosen to stand aside, and I look forward to continuing to support the prime minister in my new role.”
Starmer commented: “I want to thank Sue for all the support she has given me, both in opposition and government, and her work to prepare us for government and get us started on our programme of change.
“Sue has played a vital role in strengthening our relations with the regions and nations. I am delighted that she will continue to support that work.”
Downing Street announced five appointments on Sunday, with Starmer’s chief adviser and former Labour general election campaign director Morgan McSweeney replacing Gray as chief of staff.
McSweeney was the leading architect of Labour Together, an influential Starmerite think-tank which became a vehicle for moderate Labour politicians to help oust Jeremy Corbyn.
Downing Street’s political director Vidhya Alakeson and director of government relations Jill Cuthbertson have been appointed Starmer’s deputy chiefs of staff.
Elsewhere, director of the Downing Street policy unit Nin Pandit has become Starmer’s parliamentary private secretary, while James Lyons, formerly of TikTok, will lead a new strategic communications team.
Number 10 said changes to Starmer’s team were to “strengthen his Downing Street operation ahead of marking his first 100 days in office”.
The shake-up underscores the intense pressure on Starmer to put an end to infighting among Labour advisers and shore up his public image.
Starmer has suffered a sharp decline in his personal ratings since winning the election. An Opinium poll published last month revealed his approval score had fallen 45 points since July and dropped below that of Tory leader Rishi Sunak.
A Conservative Party spokesperson said on Sunday that the new government had “been thrown into chaos” and “engulfed” by scandal.
“Sue Gray was brought into deliver a programme for government and all we’ve seen in that time is a government of self-service,” they added. “The only question that remains is who will run the country now?”
Gray became a household name for leading an inquiry into the Partygate scandal that contributed to Boris Johnson’s resignation.