Sue Gray has resigned from her position of Prime Minister Sir Keir Starmer’s chief of staff, citing concerns that she had “risked becoming a distraction” in her role, according to BBC report. Her resignation comes amid growing controversy over her pay and donations from Labour peer Lord Waheed Alli, with reports revealing that her salary exceeded Sir Keir’s.

Confirming the news of Gray’s resignation, Downing Street added that now she will serve as the prime minister’s envoy for nations and regions. Gray rose to prominence as the investigator of the Partygate scandal.

Labour has announced that Morgan McSweeney, former chief adviser to Sir Keir and architect of Labour’s election campaign, will replace Gray. In her resignation statement, Gray expressed gratitude for the opportunity to contribute to the success of the Labour government.

“It has been an honour to play my part in the delivery of a Labour government as Sir Keir’s chief of staff, both in opposition and in No. 10,” she said. “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,” she added.

Sir Keir expressed appreciation for Gray’s contributions, stating that he was “delighted” she would continue to serve in her new capacity. He emphasized that the leadership reshuffle signals his commitment to advancing his administration’s agenda.

Gray’s departure follows a series of internal disputes, just shy of the government’s first 100 days in office. She notably skipped last month’s Labour Party conference, an event overshadowed by questions surrounding her decision to grant Lord Alli a temporary Downing Street pass.

Frustration within the government regarding Gray’s leadership was highlighted when confidential details of her salary were leaked, revealing tension over pay cuts for special advisers and dissatisfaction with the lack of formal contracts following Labour’s election win.

Despite the growing controversy, Gray maintained strong support among key cabinet ministers. Just weeks ago, Deputy Prime Minister Angela Rayner came to Gray’s defense, praising her “exceptional” work and criticizing the media’s treatment of her. Rayner and others noted the “gendered” nature of some attacks directed at Gray.

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