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Is Sue Gray going to the Lords? Keir Starmer’s ousted chief of staff ‘could get a peerage’ after losing power battle with Morgan McSweeney, the ex head of think tank fined for failing to declare £730,000 in donations

Sue Gray could end up in the House of Lords after being forced out as Keir Starmer‘s chief of staff, it was reported today.

The former civil service enforcer quit at the weekend after losing a power struggle with Labour campaigns guru Morgan McSweeney, who has replaced her.

Less than 100 days since Labour’s general election victory, she will now take on a job working with the Prime Minister alongside the leaders of the devolved nations and regional mayors.

The Guardian reported that she could be en-nobled and take a seat in the upper house while performing the role.

It means Mr McSweeney, 47, who is married to Labour MP Imogen Walker, is now the main power player in the No10 operation.

But he has himself felt the heat of criticism. Last November it was revealed he failed to declare more than £730,000 in donations to the organisation that was behind Sir Keir’s leadership campaign.

The think tank Labour Together, of which he was the director, broke laws on party funding by neglecting to register dozens of payments to the Electoral Commission on time.

It was fined £14,250 by the watchdog for missing the 30-day deadline to register the donations.

The former civil service enforcer quit at the weekend after losing a power struggle with Labour campaigns guru Morgan McSweeney, who has replaced her.

The former civil service enforcer quit at the weekend after losing a power struggle with Labour campaigns guru Morgan McSweeney, who has replaced her.

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Less than 100 days since Labour's general election victory, she will now take on a job working with the Prime Minister alongside the leaders of the devolved nations and regional mayors.

Less than 100 days since Labour’s general election victory, she will now take on a job working with the Prime Minister alongside the leaders of the devolved nations and regional mayors.

Last November it was revealed as organisation run by Mr Mcsweeney failed to declare more than £730,000 in donations  to support Sir Keir's leadership campaign.

Last November it was revealed as organisation run by Mr Mcsweeney failed to declare more than £730,000 in donations  to support Sir Keir’s leadership campaign.

Labour big beasts are urging Keir Starmer to quell infighting and get his government back on track today after Sue Gray’s extraordinary exit.

The PM has been forced to conduct his first ‘reset’ after barely three months in power, replacing his chief of staff and drafting in a new comms team.

Morgan McSweeney is now in the top job at No10, sealing his victory in an apparent power struggle with former civil servant Ms Gray.

But even allies are acknowledging that Sir Keir must do better after a post-election ‘honeymoon’ cut short by the winter fuel allowance furore, freebies scandal and a Downing Street civil war. The looming Budget is set to be a critical moment as the Chancellor looks for ways of hiking taxes.

Former minister Baroness Harman said Sir Keir would be ‘frustrated’ after ‘missteps’ and ‘clunkiness’ blighted his transition to power.

Ex-No10 spin chief Alastair Campbell said the premier must recognise that government is ‘harder than Opposition’ and ‘narrate a very clear strategy’.

Touring broadcast studios this morning ahead of Parliament returning from the conference recess, Defence Secretary John Healey paid tribute to Ms Gray’s contribution.

However, he said he ‘really respects her decision to step aside’ as it ‘allows us more clearly’ to set out a mission for Government.

Mr Healey praised Ms Gray as having a 'great talent' for 'bringing people together' and described her as a 'natural team player' who 'raises the standards of those around her'.

Mr Healey praised Ms Gray as having a ‘great talent’ for ‘bringing people together’ and described her as a ‘natural team player’ who ‘raises the standards of those around her’.

Mr Healey praised Ms Gray as having a ‘great talent’ for ‘bringing people together’ and described her as a ‘natural team player’ who ‘raises the standards of those around her’.

Asked how he would characterise the Labour administration and whether it was at ‘crisis point’, Mr Healey told LBC: ‘No, I’d characterise this as a new Government getting on with the job.’

He refused to be drawn on whether Ms Gray’s new role as envoy to the regions and nations was salaried or whether she would be elevated to the House of Lords, saying: ‘None of those are decisions for me.’

Asked whether her new position was paid, Mr Healey said: ‘She has this great talent, Sue Gray, to bring people together, she’s a natural team player and she raises the standards of those around her.’

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