Gray steps down amid salary controversy and internal tensions, and will take on a new role as envoy for nations and regions.

Sue Gray has resigned from her position as Chief of Staff to Prime Minister Sir Keir Starmer, stating that her presence was becoming a “distraction” to the government’s agenda. Gray, who gained notoriety as the investigator of the Partygate scandal, announced her departure amid growing scrutiny over her salary, which was reported to be higher than Starmer’s, as well as controversy surrounding donations from Labour peer Lord Waheed Alli.

In a statement, Gray expressed her gratitude for the opportunity to contribute to Labour’s efforts in both opposition and government. “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,” she said. Gray will transition to a new role as the Prime Minister’s envoy for nations and regions.

Starmer praised Gray’s contributions and confirmed that Morgan McSweeney, a key figure in Labour’s election campaign, will take over her role. He described the reshuffle as a demonstration of his “determination to deliver.”

Gray’s resignation comes as tensions within Downing Street have reached a boiling point, particularly over issues of salary and personnel contracts following the recent election victory. Her departure reflects internal frustrations, with reports suggesting that other advisers were unhappy about being asked to take pay cuts while Gray’s salary remained high.

THE GUARDIAN

In a significant reshuffle aimed at stabilizing his administration, Keir Starmer has appointed Morgan McSweeney as his new chief of staff, following the resignation of Sue Gray amid reports of internal strife and criticism. Gray’s departure comes less than a week before the Labour government was set to celebrate its first 100 days in office and follows ongoing controversies related to her leadership style, including accusations of micromanagement and limited access to key government documents.

Gray, who previously led the inquiry into the Partygate scandal, expressed in her resignation statement that the intense scrutiny surrounding her role had become a distraction from the government’s objectives. She acknowledged the need for a change and indicated her commitment to continue supporting Starmer in her new position as the prime minister’s envoy to the nations and regions, a role that may come with a peerage.

The appointment of McSweeney, credited with masterminding Labour’s electoral success, has raised eyebrows as Gray reportedly felt blindsided by the announcement. Sources within the Labour Party had noted escalating tensions between the two, with some insiders previously hinting that one of them would need to go, predicting McSweeney’s job security amid the turmoil.

Starmer’s reshuffle also aims to enhance the broader No 10 operation, promoting women into key roles within his team. Vidhya Alakeson and Jill Cuthbertson have been elevated to deputy chiefs of staff, while James Lyons will head a new strategic communications team. Additionally, Nin Pandit, a former director of the Downing Street policy unit, has been appointed as the principal private secretary to the prime minister.

The reshuffle comes against a backdrop of criticism from the Conservative Party, which labelled the situation in Downing Street as “chaos.” They questioned Starmer’s ability to lead effectively after Gray’s resignation, suggesting that her role was central to the Labour government’s agenda.

In response to the turmoil, Starmer stated his determination to deliver the changes voters anticipated, indicating that this reshuffle reflects a strategic move to bolster his leadership amidst the challenges facing his administration.

SKY NEWS

After Sue Gray’s resignation as chief of staff, Sir Keir Starmer faces a critical challenge to stabilize his government amid a backdrop of dysfunction and controversy. Gray’s departure comes as Starmer’s administration has struggled during its first 100 days, with issues like freebies-gate and internal conflicts highlighting weaknesses in Downing Street.

The dual leadership dynamic—Gray managing the transition and Morgan McSweeney overseeing political strategy—had created tensions. As criticisms about Gray’s handling of operations mounted, it became evident that a change was necessary to restore order. Insiders noted that discussions about Gray’s resignation had been ongoing, with her acknowledging that the situation was untenable, leading to a mutual decision for her departure.

Starmer’s choice to replace Gray with McSweeney underscores his commitment to recalibrating his team and re-establishing control. His typically patient demeanour has been tested, prompting decisive action in response to the evident dysfunction within Number 10. Moving forward, Starmer must focus on refocusing operations, enhancing communication, and streamlining decision-making processes to effectively address challenges.

Additionally, he faces the task of restoring public confidence in his leadership after the recent turmoil. Starmer needs to reassure party members and engage with the electorate to regain trust and demonstrate that Labour can deliver on its promises.

As Starmer embarks on this new chapter, he must confront these challenges head-on and foster a cohesive strategy within his government. The coming weeks are pivotal in determining whether he can effectively navigate these issues and fulfil the mandate bestowed upon him by voters. The reshuffle, while necessary, is just the beginning of a long road toward stability and effectiveness for the Labour government.