Sue Gray has dramatically resigned as Keir Starmer’s chief of staff - sparking a major shake-up inside 10 Downing Street.
The announcement came following weeks of behind-the-scenes rows among the prime minister’s top team.
Gray said recent speculation about her future had become “a distraction to the government’s vital work”.
The former senior civil servant will now take up a new role as Starmer’s envoy for nations and regions.
She is being replaced as chief of staff by Morgan McSweeney, seen by many as her arch-rival in No.10, as part of a wider re-organisation inside No.10.
In a statement, the PM said: “I want to thank Sue 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.”
Gray said: “After leading the Labour party’s preparation for government and kickstarting work on our programme for change, I am looking forward to drawing on my experience to support the prime minister and the cabinet to help deliver the government’s objectives across the nations and regions of the UK.
“In addition to building a close partnership with devolved governments, I am delighted this new role will mean continuing to work alongside and support the prime minister, deputy prime minister, the cabinet and the mayors on English devolution.
“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.”
Gray has been accused of failing to lay the groundwork for Labour’s first 100 days in office, during which time the government has been hit by a series of gaffes and controversies.
One senior official told HuffPost UK: “People are annoyed about the lack of preparation for government.”
As part of the wider No.10 shake-up, Downing Street officials Vidhya Alakeson and Jill Cuthbertson are becoming deputy chiefs of staff.
Nin Pandit, who had been director of the Downing Street policy unit from November 2022, becomes Starmer’s principal private secretary.
And former political journalist James Lyons has been appointed No.10′s head of strategic communications.
Starmer said: “I’m 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.”
A Conservative 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.
“Sue Gray was brought into 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?”