Sue Gray was blocked from taking a new Downing Street job after she demanded a pay rise, it was reported today.

The former chief of staff to the Prime Minister was offered a ‘regions envoy’ role – but demanded more money to take it, according to reports.

Civil servants were said to be so shocked by her demands that they were preparing to publicly declare her not value for money, the Sun on Sunday reported.

Last week it emerged that Ms Gray would no longer be taking the envoy role she was offered after she left Number 10 over a row about her pay.

She is said to have asked to be paid more than her former £170,000 salary to take up the part-time role as the Prime Minister’s envoy to the nations and regions.

Nevertheless, she is still expected to be made a peer within weeks when his next honours list is published before the new year.

The former senior civil servant left Number 10 last month saying she ‘risked becoming a distraction’ after a row over her pay and a power battle within Number 10.

She was replaced by Morgan McSweeney who ran Labour’s successful election campaign.

Keir Starmer’s former chief of staff was offered a role as the PM’s ‘envoy for the nations and regions’ after being ousted in early October

However, The Sun on Sunday reported that the offer was withdrawn by Number 10 because Ms Gray had demanded an eye-watering pay package

She was then offered a role as the PM’s envoy to the nations and regions but last week said she would not be taking the job.

The Sun on Sunday reported that the offer was withdrawn by Number 10 because Ms Gray had demanded an eye-watering pay package.

She earned more than the Prime Minister’s £166,786 salary in her previous role and was said to have asked for more to do the envoy role.

The envoy role is part time – so while she would have been earning less than the PM annually she wanted more money per day worked.

A Westminster source told the paper: ‘Sue was digging her feet in over money.’

A Labour spokesman said it did not comment on staffing matters.