Sue Gray a ‘lightning rod for criticism’, minister says as Reeves may scrap pension tax raid – UK politics live updates

Continuing his morning media round, the defence secretary has insisted that there is a “strong team at Number 10” who is “getting on with the job” despite Sue Gray stepping down.

John Healey told the BBC that the former chief of staff had contributed to helping Labour prepare for government, but had “become a distraction”.

He said: “As she said herself yesterday she’d become a distraction with the commentary that was removing the focus on the government’s job of working for change, and that’s why she’s stepped aside.”

Mr Healey added: “But the important thing is we’ve got a strong team at Number 10, the prime minister’s got a strong team across government and in parliament, and we’re a government determined and continuing to get on with the job.”

Sue Gray, who rose to fame when she was handed responsibility for untangling the ‘Partygate‘ saga, has resigned as Sir Keir Starmer’s chief of staff and will take up a new role in government.

Ms Gray 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”.

Concerns over the power of Ms Gray in government were recently raised when it was revealed she is paid more as chief of staff than the prime minister.

Here’s everything you need to know about the former senior civil servant:

The chancellor is expected to axe plans for a tax raid on pension savings after No 11 warned the move could be unfair to public sector workers.

Senior Treasury officials have reportedly told Rachel Reeves that reducing 40 per cent of tax relief on higher earners could hit those with lower incomes.

A government figure told The Times it would be “madness” to hit nurses and teachers with large tax rises, just months after giving them a pay rise.

“The government will take into account the impact on public sector workers,” they said.

The chancellor will reveal her “major measures” to the Office for Budget Responsibility, the fiscal watchdog, this Wednesday.

Sir Keir Starmer has said that “we must unequivocally stand with the Jewish community” and reiterated his calls for a ceasefire as he marked the first anniversary of the October 7 attacks.

Monday is one year since the Hamas attacks in Israel, which triggered Israel’s subsequent conflicts in Gaza and Lebanon.

Sir Keir described October 7 2023 as “the darkest day in Jewish history since the Holocaust” and said that “collective grief has not diminished” in the year since.

“Over a thousand people were brutally murdered. Men, women, children and babies killed, mutilated, and tortured by the terrorists of Hamas. Jewish people murdered whilst protecting their families, young people massacred at a music festival, people abducted from their homes,” the Prime Minister said.

“Agonising reports of rape, torture and brutality beyond comprehension which continued to emerge days and weeks later.

“As a father, a husband, a son, a brother – meeting the families of those who lost their loved ones last week was unimaginable. Their grief and pain are ours, and it is shared in homes across the land.

“A year on, that collective grief has not diminished or waned.”

Sir Keir Starmer has been forced to accept the resignation of his chief of staff Sue Gray in the latest attempt by the prime minister to regain control of the political agenda and end the chaos in his government.

After less than three months in office since the election, the loss of Ms Gray – who he personally recruited to ensure he could drive through his policies through Whitehall once in power – is a major blow for Sir Keir.

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The former chief of staff will take a generous pay cut in her new role after quitting Sir Keir Starmer’s cabinet, The Telegraph reports.

On Sunday, Ms Gray announced she would leave Downing Street to become the prime minister’s new envoy for the regions and nations.

But just as she is set to transition to her new role, a leak revealed that she earned £170,000, which is more than the prime minister’s salary.

The whopping figure sparked fury among some frustrated Labour figures who have been on lower pay since entering government.

John Healey has not backed Emmanuel Macron’s call for a full arms embargo on Israel when it comes to the war in Gaza.

During an interview with Sky News, the defence secretary sent his thoughts to families of hostages and those who lost loved ones on the anniversary of the “horrifying” 7 October attack.

Asked whether he agreed with the French president’s view, he said: “No, we work a different system.

“We as a government don’t supply anything directly to Israel, but where there are export licences that have a clear risk that may breach international law, then we’ve suspended those licences where they could affect the lives in Gaza.”

In a pivotal moment for Sir Keir Starmer, significant changes have been implemented behind the iconic black door of Number 10, to recalibrate the government’s operations.

With the clock ticking toward his first 100 days, the Labour leader has displayed a decisive edge by replacing chief of staff Sue Gray with Morgan McSweeney, his former chief of staff and head of political strategy.

Sir Keir’s patience is waning as he strives to reassert control after a tumultuous start to his premiership.

Despite Ms Gray’s previous contributions, her tenure has been marred by controversy and criticism, particularly surrounding the “freebie-gate” scandal.

Insider sources told Sky News that her departure was mutually agreed upon, with Ms Gray transitioning to a new role as envoy for the nations and regions.

One said: “This is about a PM wanting to regain grip.”

The prime minister’s decision reflects a broader strategy to streamline operations at Number 10, especially after a lacklustre performance following a successful election campaign.

The reshuffle not only promotes Mr McSweeney but also enhances the communications team, bringing in seasoned professionals to fortify the government’s messaging.

While some view this as a capitulation to internal dissent, it’s clear that Sir Keir is committed to unifying his team and addressing operational weaknesses.

On the morning media round, John Healey said that “sadly it’s nothing new” to see a senior staffer in Number 10 become “a lightning rod for criticism”.

The defence secretary said Sir Keir Starmer’s administration owes Sue Gray for her “massive role” in helping it prepare for office but “I respect her decision to step aside”.

“I’m glad she’s still going to be working with us,” he told Times Radio.

Asked whether he would have accused the Tories of being a “total shambles” if their chief of staff had stood down within three months in office, Mr Healey said: “In the end what counts for people is what government does. We’re getting on with the job people elected us (to do).”

Morgan McSweeney has “a strong track record” and “was at the heart of what was a historic election win for the party,” the minister said.

He repeatedly refused to say whether Mr McSweeney would be paid more than Sir Keir.

Asked whether there had been problems with Ms Gray, he said: “I really respect her decision to step aside” as it “allows us more clearly” to set out a mission for government, citing Ms Gray’s own statement in which she said commentary relating to her had become a distraction.

Labour election guru Morgan McSweeney will take over as Sir Keir Starmer’s chief of staff after Sue Gray quit.

McSweeney is the creative intelligence behind Starmer’s success, first in winning the leadership of the Labour Party and then in winning a huge election victory in the country. It makes sense to have him at the top of the political side of No 10, writes Jabed Ahmed.