Sir Keir Starmer has reshuffled his Number 10 team after Sue Gray quit as chief of staff on Sunday, citing concerns that questions over her position were becoming a distraction.

Parliament is set to return on Monday after a conference recess that saw the Government wrapped up in rows over Ms Gray’s salary and freebies for ministers and MPs.

Ms Gray quit on Sunday after weeks of reports of tensions in Number 10.

Less than 100 days since Labour’s general election victory, she will now take on a job working with the Prime Minister alongside the leaders of the devolved nations and regional mayors.

She will be replaced as the chief of staff by Morgan McSweeney who led Labour’s general election campaign, and with whom she was reported to have clashed.

Sue Gray
Sue Gray has moved to another role (Liam McBurney/PA)

There are two new deputy chiefs of staff in Vidhya Alakeson, the political director at Number 10, and Jill Cuthbertson, who has been director of government relations in Downing Street since their election win in July.

She had previously worked for former Labour leaders Gordon Brown and Ed Miliband.

And after weeks of briefings about reported splits in Number 10, former journalist James Lyons will be in charge of a new strategic communications team, joining Downing Street from TikTok.

Nin Pandit, who previously ran the Downing Street policy unit, has been appointed principal private secretary to the Prime Minister, a senior civil service position.

Meanwhile partygate report author Ms Gray has been appointed the Prime Minister’s envoy for the regions and nations.

In her statement on Sunday, Ms Gray said: “It has been an honour to take on the role of chief of staff, and to play my part in the delivery of a Labour Government.

“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.”

Sir Keir thanked Ms Gray 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.

Sir Keir Starmer
Prime Minister Sir Keir Starmer gives a speech during a visit to a manufacturing facility in Chester (Darren Staples/PA)

A long-serving civil servant before she joined Sir Keir’s top team in September 2023, Ms Gray was thrust into the limelight in 2021 when she was tasked with investigating lockdown breaches reported in Downing Street.

She quit the civil service to join Labour in 2023, after a six-month break that was enforced by Westminster’s appointments watchdog Acoba.

Since Labour won the election in July there have been a series of briefings against Ms Gray, including the leaking of information about her salary to the BBC last month.

The broadcaster reported that Ms Gray was being paid £3,000 more than the Prime Minister, after a post-election pay rise.

The news of Ms Gray’s departure as chief of staff sparked claims of “chaos” from the Conservatives.

A party spokesperson said: “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”.

Leadership hopeful Robert Jenrick described the Government as being in “free fall” after the news, while fellow contender James Cleverly said Labour’s “first 100 days have been a disaster, and their civil war continues with the loss of Sue Gray”.

Fellow candidate Kemi Badenoch wrote in the Daily Mail that “Keir Starmer’s lack of integrity didn’t start with his freebies scandal” but the moment he hired Ms Gray.

“Now, the wheels have well and truly come off, ” she added.