Sue Gray: Sir Keir Starmer's ex-chief of staff tasked with 'resetting' relationships with regions

She said she was standing down because it had “become clear to me that intense commentary around my position risked becoming a distraction to the government’s vital work of change”.

There had been reports of tensions in Number 10 involving Ms Gray, including between her and Sir Keir’s chief adviser, Morgan McSweeney, who will succeed her in the role.

The Yorkshire Postunderstands there was disquiet as special advisers (SpAds) were being paid less in government than in opposition, with Ms Gray allegedly signing off the salaries and putting them on short-term contracts.

Several sources also told this paper they believed Ms Gray’s handling of the media grid allowed negative stories to fill a policy vacuum.

She has been moved into a newly created role as envoy to the nations and regions of the UK, which includes Yorkshire’s three metro mayors.

It is unclear if her new job is paid or whether she will attend the Council of Nations and Regions which is meeting on Friday.

Downing Street said she would focus on strengthening relationships with the first ministers and mayors as well as driving regional investment.

The Prime Minister’s official spokesman toldthe Yorkshire Postthat Sir Keir “wanted a reset with devolved governments and regions and that it was a priority and commitment that the council would meet within the first 100 days of this government”.

He added: “It marks an important moment and a new era of partnership with devolved governments and local leaders, which reflects his view that these relationships haven’t been as strong previously as they should have been.

“Not just those relationships, but relationships with businesses and investors to ensure that growth and investment is spread across the UK.”

No10 rejected suggestions that Ms Gray’s new role could clash with the Cabinet ministers currently covering the devolved governments and regions.

The spokesman said: “They will work constructively and collaboratively within the existing set-up.”

It is thought Ms Gray is close with Deputy Prime Minister Angela Rayner, who is also the Local Government Secretary.

Downing said the Prime Minister wants to ensure he had “the right structures in place going forward to deliver change for the country,” when asked about the reshuffled behind the scenes.

The spokesman said: “I think it’s right to reflect on the first weeks and months in office to ensure that you do have the right structures in place going forward to deliver change for the country and as the Prime Minister said the appointments he’s made will strengthen the Downing Street operation and demonstrate his determination to deliver the change that the country voted for.”

The Tories accused the ruling party of allowing itself to descend into “chaos”, as leadership hopeful Robert Jenrick claimed the new administration was in “freefall”.

Shadow Commons leader Chris Philp told GB News: “(Sir Keir) can’t even run his own Number 10 Downing Street operation, let alone run the country. This has all fallen apart a lot faster than I was expecting.”

Mr Jenrick claimed that Ms Gray’s tenure was “one of the unhappiest in the long history of that building (Downing Street)” and called for an investigation into allegations that she had denied access to officials who wanted to give an intelligence briefing to the PM.

“Ms Gray should be blocked from taking up her new role until the propriety and ethics team at the Cabinet Office — a unit she once ran — have carried out a full investigation,” he said.