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”.
The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
More on G7 Summit
Related Topics:
“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
Spotify
This content is provided by Spotify, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spotify cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spotify cookies.
To view this content you can use the button below to allow Spotify cookies for this session only.
Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.