SUE GRAY quit as the Downing Street chief of staff today saying she was becoming a distraction to Sir Keir Starmer’s government.

Revelations that she earned more than the Prime Minister and rows over freebies for ministers have plagued Labour since it took power four months ago. 

In a statement, the former civil servant and “Partygate” report author, appointed Sir Keir’s right-hand woman when Labour were in opposition last year, said she was “pleased to have accepted a new role as the Prime Minister’s envoy for the regions and nations.”

“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,” 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.”

The unexpected resignation reinforces the impression of a chaotic operation at No 10, with recriminatory media briefings about Ms Gray suggesting infighting in the Prime Minister’s inner circle even in his first months in office.

Ms Gray will be replaced as chief of staff by Morgan McSweeney, a right-wing Labour factionalist who is reported to have clashed with her.

Vidhya Alakeson, political director at No 10, and Jill Cuthbertson, director of government relations, have been promoted to deputy chiefs of staff.

A spokeswoman for Momentum said: “It beggars belief that with thousands being slaughtered in Beirut  and Gaza, continued austerity wreaking havoc on public services and support for the government  plummeting, Starmer’s bully boys are more interested in internal power games than coming up with genuine  solutions.”