Sue Gray has resigned from her position as Sir Keir Starmer’s chief of staff, Number 10 has announced.
Ms Gray has instead been appointed as the prime minister’s envoy for nations and regions.
Morgan McSweeney, the party’s former campaign director who masterminded July’s election landslide, will replace her as the prime minister’s chief of staff.
Ms Gray said that while it had been “an honour to take on the role of chief of staff”, it had become clear 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.”
The prime minister thanked Ms Gray – who famously authored the report into parties in Downing Street during the pandemic – 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,” he added.
Tensions over Ms Gray’s role reached a crescendo when her salary of £170,000 – £3,000 more than the prime minister – was leaked to the BBC in an apparent attempt to damage her politically.
The broadcaster also reported more junior staff were disgruntled they were not being paid more than what they received when Labour was in opposition – despite now occupying more senior government roles.
Government ‘thrown into chaos’
A Conservative Party spokesperson described the latest moves in Downing Street as “chaos” and questioned who was running the country.
“In fewer than 100 days Sir Keir Starmer’s Labour government has been thrown into chaos – he has lost his chief of staff who has been at the centre of the scandal the Labour Party has been engulfed by,” they said.
Sir Keir Starmer has now gone full circle. At lunchtime he replaced Sue Gray, the former civil servant whose appointment has caused him endless pain, with Morgan McSweeney.
While the elevation of his campaign chief was widely welcomed, this is nevertheless a curious move.
Mr McSweeney was his very first chief of staff back in opposition in 2020 and for the first 14 months of his leadership, until he was moved after the botched reshuffle of 2021.
Cabinet members and Labour MPs must hope second time around he will be a better fit.
In doing so, the prime minister is in effect admitting very big personnel mistakes, forced to act eventually because of complaints from every side around him that the situation had become untenable.
At its heart, Ms Gray – who was known in Whitehall as the consummate fixer – had to go because nothing felt like it was being fixed.
She was in charge of preparations for government, but when 5 July arrived they appear scant and progress from there was slow.
But blame for this should lie not with her but with Sir Keir.
If there had been enough due diligence on the appointment, some of these problems might have been anticipated.
“Sue Gray was brought in to deliver a programme for government and all we’ve seen in that time is a government of self-service.
“The only question that remains is: who will run the country now?”
One Labour insider told Sky News that the current leadership “spent years saying how it was time to professionalise the party – but this chaos with Keir Starmer seems remarkably similar to the chaos with Jeremy Corbyn”.
They pointed out that Mr McSweeney previously served as Sir Keir’s chief of staff between 2020 and 2021 before being moved on to his campaign role.
Image: Morgan McSweeney has replaced Sue Gray as Number 10 chief of staff. Pic: Shutterstock
In a major announcement on Sunday, Sir Keir also announced a shake-up of his entire Downing Street operation following disquiet at how the party handled rows over freebies and donations, as well as its decision to axe winter fuel payments for most pensioners.
Vidhya Alakeson and Jill Cuthbertson have been promoted to deputy chiefs of staff, while Nin Pandit has been appointed as Sir Keir’s principal private secretary.
Meanwhile, former journalist James Lyons will join from TikTok to lead a new strategic communications team.
The prime minister said he was “really pleased to be able to bring in such talented and experienced individuals into my team”
“This shows my absolute determination to deliver the change the country voted for,” he added.
One source told Sky News that the news of Ms Gray’s departure came on Sunday after plans for the reorganisation announcement on Monday were leaked to the media.
Her advisory role will be to support Sir Keir and the cabinet in delivering on its devolution agenda.
One former senior adviser in Number 10 told Sky News that “without the authority of the prime minister and the proximity to him, this ‘envoy’ role will not be a serious position in government”.
Russia has accused the British government of “provocative statements” and an “escalation of militaristic hysteria” after the defence secretary warned a Kremlin spy ship was nearing the UK.
At a news conference in Downing Street on Wednesday, John Healey said the Yantar was on the edge of British waters north of Scotland, having entered wider UK waters over the last few weeks.
He said it was the second time this year the ship had been deployed off the UK coast and he claimed it was “designed for gathering intelligence and mapping our undersea cables”.
Image: Russian spy ship the Yantar. Pic: Ministry of Defence
Mr Healey said the ship had “directed lasers” at pilots of surveillance aircraft monitoring its activities – a Russian action he called “deeply dangerous”.
The defence secretary explained: “We deployed a Royal Navy frigate and RAF planes to monitor and track this vessel’s every move, during which the Yantar directed lasers at our pilots.”
He said his message to Moscow and President Vladimir Putin was “we see you, we know what you’re doing, and if the Yantar travels south this week, we are ready”.
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Mr Healey also stated the UK government has “military options ready” if the ship sails closer to British shores.
Russia’s response
Responding to Mr Healey’s comments, the Russian embassy to the UK said on social media it noted his “latest provocative statements” and insisted the ship was an “oceanographic research vessel… in international waters”.
The embassy said the British accusations “raise a smile” and Russia’s actions were “not aimed at undermining” the UK’s security.
It hit out at the UK government’s “Russophobic course and the escalation of militaristic hysteria”, which it warned creates “prerequisites for new dangerous situations”, as it urged London to “refrain from destructive steps”.
The defence secretary’s remarks come after a report from MPs warned the UK lacks a plan to defend itself from a military attack, despite the government promising to boost readiness with new arms factories.
At least 13 sites across the UK have been identified for new factories to make munitions and military explosives, with Mr Healey expecting the arms industry to break ground at the first plant next year.
The report, by the Commons Defence Committee, said the UK “lacks a plan for defending the homeland and overseas territories” as it urged the government to launch a “co-ordinated effort to communicate with the public on the level of threat we face”.
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Now the government has been cautioned it may need to be “more muscular” in standing up to Russia.
The chair of the Joint Committee on National Security Strategy, Matt Western, said Wednesday’s development “demonstrates once again that Russia presents a genuine and immediate threat to the UK’s security”.
He added that “the UK needed to be more muscular in tackling Russian aggression” and “there is more we can do”.
“More assertive retaliation may be required,” he concluded.
Mr Healey acknowledged the dangers facing the UK, saying the country was in a “new era of threat” that “demands a new era for defence”.
Giving more details on the vessel, he said it was “part of a Russian fleet designed to put and hold our undersea infrastructure and those of our allies at risk”.
He said the Yantar wasn’t just part of a naval operation but part of a Russian programme driven by Moscow’s Main Directorate of Deep-Sea Research, or GUGI, which is “designed to have capabilities which can undertake surveillance in peacetime and sabotage in conflict”.
“That is why we’ve been determined, whenever the Yantar comes into British wider waters, we track it, we deter it and we say to Putin we are ready, and we do that alongside allies,” he added.
Asked by Sky News’ political correspondent Rob Powell whether this was the first time that lasers had been used by a Russian vessel against pilots, Mr Healey replied: “This is the first time we’ve had this action from Yantar directed against the British RAF.
“We take it extremely seriously. I’ve changed the Navy’s rules of engagement so that we can follow more closely, monitor more closely, the activities of the Yantar when it’s in our wider waters. We have military options ready.”
Mr Healey added that the last time the Yantar was in UK waters, the British military surfaced a nuclear-powered attack submarine close to the ship “that they did not know was there”.
The pair have each been charged with murder and attempting to defeat the ends of justice.
The suspects, both of Greenock, made no plea to the two separate charges last week and were remanded in custody ahead of their next court appearance.
A 45-year-old man previously arrested in connection with assault and a 41-year-old man arrested at the same time as the two women have both been released pending further enquiries.
Police Scotland previously said officers investigating Mr Best’s death were carrying out enquiries into a report of a disturbance in Lansbury Street, Greenock, which took place between 11pm on 10 November and 3am on 11 November.
A force spokesperson said: “Enquiries are ongoing.”
Sir Keir Starmer has called the pile of fly-tipped illegal waste next to a river in Oxfordshire “utterly appalling” and said “all available powers” will be used to make those responsible cover the cost of the clean-up.
Liberal Democrat leader Sir Ed Davey said the pile of rubbish in a field beside the River Cherwell in Kidlington is now 150m long and up to 12m high, adding that water is “now lapping against the waste and carrying it into the river”.
Speaking at PMQs, Sir Ed said it is just one of many sites where organised criminal gangs are “illegally dumping their waste onto our countryside and getting away with it”.
“This is a shocking environmental emergency. So will he instruct the Environment Agency to clean it up now?” Sir Ed added.
Sir Keir responded in the House of Commons on Wednesday, calling the scenes “utterly appalling”.
The prime minister said: “A criminal investigation, as he knows, is under way. Specialist officers are tracking down those responsible.
“The Environmental Agency, in answer to this question, will use all available powers to make sure that the perpetrators cover the cost of the clean-up, which must now follow.”
Image: Pic: Sky News
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UK’s ‘biggest ecological disaster’
Sir Keir added: “We have boosted the Environment Agency’s budget for tackling waste crime by 50%, giving councils new powers to seize and crush fly-tippers, vehicles and lawbreakers can now face up to five years in jail.”
Earlier this week, Calum Miller, Liberal Democrat MP for Bicester and Woodstock, said recent heavy rainfall brought by Storm Claudia at the weekend had made the situation more urgent, and meant the rubbish was slowly floating towards the river, which eventually flows through Oxford and feeds the Thames.
Image: Calum Miller, Liberal Democrat MP for Bicester and Woodstock
Image: Pic: Sky News
Mr Miller also told Sky News on Sunday it was the first time he had seen anything on this scale, questioning whether the Environmental Agency had the resources to deal with it.
The cost of removing the waste is estimated to be more than the entire annual budget of the local council, which is about £25m.
With the site on a floodplain, Mr Miller listed what he saw as the three major environmental risks – waste being washed into the waterways, rain seeping through the waste and carrying toxins into the water and the danger of decomposing chemicals presenting a fire risk.
The site is adjacent to the A34, a busy road running through cities including Oxford and Birmingham.
He said the police had used a helicopter with a heat-seeking camera, and could see that some of the waste was beginning to decompose.
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‘Mountain’ of waste dumped
Mr Miller said he believed the Environment Agency was first made aware of the issue back in July.
He said he believed it was the work of “organised criminal gangs” and raised a “bigger systemic problem around the country”, with “dumps are cropping up in more and more places”.
He added: “My concern is the Environmental Agency lacks the resources to deal with criminal activity on this scale. I’m calling on the government to take action and ensure those who are dealing with such incidents have the powers they need to tackle it at source.”
Anna Burns, the Environment Agency’s director for the Thames area, said on Wednesday: “Most of the tipping happened before we were aware of it. As soon as we were aware, we acted quickly and decisively.”
Ms Burns said: “We are pursuing this as a criminal investigation and currently following a number of leads, and we are laser focused on pursing that investigation.
“And we are working with partners to understand the risks associated with the site.”
She said the agency will pursue the perpetrators to make them pay for the “blight on the landscape” they had caused.