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Sue Gray has quit her role as Prime Minister Sir Keir Starmer’s chief of staff.
A Downing Street spokeswoman confirmed Ms Gray will take up a new role as the PM’s envoy for nations and regions.
She had been caught up in rows over pay, after the BBC’s political editor revealed her salary was higher than Sir Keir’s, and donations from Lord Alli.
Labour has confirmed Ms Gray will be replaced by Morgan McSweeney, who was previously chief adviser to the PM.
Ms Gray, who also worked with Sir Keir as his chief of staff in opposition, said it had been an honour to “play my part in the delivery of a Labour government”.
“Throughout my career my first interest has always been public service,” 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.”
Thanking Ms Gray for her work preparing Labour for government and in Downing Street, Sir Keir said he was “delighted” she would stay by his side in her new role.
He said: “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.”
The Labour conference was overshadowed by controversy over clothing donations from Labour peer and longstanding donor Lord Waheed Alli, for whom Ms Gray reportedly authorised a temporary Downing Street pass after the election.
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