Sue Gray has quit as the Downing Street chief of staff, citing fears she was “becoming a distraction” to Sir Keir Starmer’s government.

In a statement on Sunday, Ms Gray said she was “pleased to have accepted a new role as the Prime Minister’s envoy for the regions and nations”, and Sir Keir thanked her for her support.

The partygate report author has been a high-profile figure in Sir Keir’s top team since she was appointed as chief while Labour were in opposition last year. But in recent weeks, Number 10 has been plagued by reports of infighting, as rows over Ms Gray’s salary and Government freebies have been among those that have dominated the headlines.

In the statement, 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.

Ms Gray’s departure has triggered a wider reshuffle of the Downing Street operation. She will be replaced as chief of staff by Morgan McSweeney, one of the key figures in Labour’s election campaign who is reported to have clashed with Ms Gray.

Downing Street Chief of Staff Sue Gray attends the 79th United Nations General Assembly at the UN headquarters in New York
Sue Gray’s departure has triggered a wider reshuffle of the Downing Street operation (Leon Neal/PA)

Political director at Number 10 Vidhya Alakeson and director of government relations Jill Cuthbertson have been promoted to deputy chiefs of staff.

Nin Pandit, director of the Downing Street Policy Unit, has been appointed parliamentary private secretary to the Prime Minister, and former journalist James Lyons will join to head up a new strategic communications team, Downing Street said.

Last month, it was leaked to the BBC that Ms Gray was earning more than the Prime Minister, amid a series of briefings against her as chief of staff.

The broadcaster was told that Ms Gray was earning £170,000, which would put her on £3,000 more than Sir Keir.

It comes less than 100 days since Sir Keir walked into Downing Street as Prime Minister, and the Conservatives have described the situation as “chaos”.

A Tory Party spokesman 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 in to deliver a programme for government and all we’ve seen in that time is a government of self-service.”