Insights into the mole hunt as Sue Gray’s briefing wars roil Downing Street

A feverish mole hunt to uncover which insider at 10 Downing Street leaked the salary of Sir Keir Starmer’s chief of staff Sue Gray is underway, as the latest damning briefing threatens a split at government headquarters.

There was a bitter war of words in No 10 over the negative briefings – with some immediately pointing the finger at Cabinet Secretary Simon Case as the most likely culprit. The Cabinet Office and No 10 have “categorically” denied that Case was behind the leaks.

But although Case has been repeatedly accused of failing to stop the leaks, there are indications that a number of people may be behind the story, given the general frustration with Gray’s leadership style and treatment of the newly appointed advisers.

Starmer’s government was hit by another row over leaks on Wednesday after it was revealed that Gray earns more than the prime minister, in what appeared to be the latest attempt to attack the senior aide. Gray was appointed on a salary of £170,000, giving her a slightly higher salary than Starmer, who earns around £167,000.

The BBC reported that insiders claimed that Gray herself had asked for the salary but then refused to cut it by several thousand pounds, meaning she would earn less than the Prime Minister.

However, this was strongly denied by sources close to Gray, who said: I it was not the case that she had demanded her salary, but she insisted that salary decisions were made by civil servants and not by political appointees.

“This claim is absolutely false. Sue Gray was not involved in any decision about her salary. She was only informed of her salary after it had been decided,” a government source said.

Gray’s pay has sparked a row in the government, partly because other advisers believe they are underpaid. And sources say it is this aspect of the row that is widening the scope for the question of who might be responsible for leaking the salary details to the BBC.

I understands that attention has shifted from Case as the perpetrator, which is why special counsels (Spads) have bad feelings toward Gray.

Insiders pointed out that the email containing the salary information from which the Gray leak is said to have originated was only sent to Spads and not to officials.

There is widespread awareness in Whitehall that some advisers are unhappy with Gray because of the length of time it takes to sign contracts and the high salaries she is being offered. And news of her lavish salary is, according to one source, “the icing on the cake of shit”.

It is the latest in a long line of negative briefings against the chief of staff, who is said to have clashed with other senior figures at Starmer’s Downs 10. Some accuse Case of being behind the allegations – he worked with Gray during their time in the civil service.

“People think he is a suspect, that has certainly been suggested,” said a senior source at 10 Downing Street. I.

Case is also suspected of being the source of leaks about Starmer’s spending on new clothes and glasses. “There are only a limited number of people who know all the details,” the source added.

I understands Case is aware that someone at 10 Downing Street is plotting against him and is said to be unsure why he is being singled out as such, given that it is widely known that he will be leaving the editorial board in the new year – suggesting that someone at 10 Downing Street is trying to hasten his departure.

Both the Cabinet Office and 10 Downing Street denied that Simon Case was behind the leaks. A spokesman said all allegations were “categorically untrue”.

Case, the civil service boss, is under pressure from ministers and 10 Downing Street insiders to bring forward his resignation date over the row. He is expected to step down from his post in January but there has been no official announcement yet.

Number 10 tried to calm the row, with a Government source insisting that “all questions should be directed to the process and not to any individual”.

And a Cabinet minister jumped to Gray’s aid and said: I: “Sue has done a tremendous job in preparing Labour to form a government and is now showing her usual drive to get Whitehall to deliver on Labour’s priorities. She will not be distracted and will carry on as before: she will focus on delivering the change the British people voted for.”

But a former adviser to the Conservatives’ 10 Downing Street, who worked with Gray in her previous role, said the briefings against Gray could make her position untenable.

They said a similar fate had befallen other advisers who produced negative stories: Alistair Campbell under Tony Blair, Steve Hilton under David Cameron, Nick Timothy and Fiona Hill who worked with Theresa May, and Dominic Cummings who served under Boris Johnson.

“Sue won’t last. It may not be her fault, but it’s never good when you end up being the main character in the story. Like Campbell, or Steve Hilton, or Nick and Fi, or Dom,” they said.

The former Whitehall ethics chief led the Partygate investigation into Boris Johnson’s No 10 before being hired by Starmer ahead of the election. Before and after the general election, Gray was the subject of a barrage of reports citing sources criticising her management.

In the first days of the new government, there were reports of a falling out between Gray and Starmer’s head of political strategy, Morgan McSweeney. Gray was also accused of having a tight grip on the political staff of newly appointed ministers, known as special advisers – forcing Cabinet sources to rush to her aid.

On Monday, the Guardian reported internal frustration over the failure of Case, the government’s chief executive and former boss of Gray, to get a handle on the damaging leaks.

Downing Street was forced this week to deny claims that there was a “nest of vipers” in Starmer’s leadership team, and the briefings escalated to the point that Starmer himself sought to quash rumours of tensions over the weekend, telling reporters that many claims were “completely false”.

A Cabinet Office spokesman said: “These allegations are entirely untrue. It is wrong to suggest that political officials made decisions about their own pay scales or the setting of their own salary.

“Decisions about the pay of special advisers are made by civil servants, not political appointees. As has been publicly stated, special advisers cannot authorize the spending of public funds, nor are they responsible for budgets.”

“Invaluable” Sue Gray is defended by allies

Allies of Sue Gray have launched a decisive counterattack after days of vitriolic briefings against her, stressing that she has strong support across the Cabinet.

In an effort to frame the former official, allies have placed the blame on a small number of disgruntled government officials, seeking to “distract” and undermine the new administration, claiming it was responsible for the briefings.

According to one insider, Gray enjoys “strong” support across the Cabinet, many of whom have never worked in government before and see the former Cabinet Office official as an “invaluable” adviser, particularly in implementing the programme outlined in the King’s Speech.

It is believed that those who watch her work up close understand her work, while outsiders cannot.

The hostility appears to be linked to allegations that Gray was responsible for cuts in the salaries of other advisers to the Prime Minister while also drastically reducing the number of special advisers to ministers.

The latest briefings against the 66-year-old, who led the civil service investigation into the Partygate scandal, also allege that she denied Starmer access to security meetings and tried to push through a rescue package for a stadium in Northern Ireland.

The allegations and counter-allegations point to a worrying sign of dysfunction at the heart of Downing Street, just two months after the new government took office.

When asked, the Prime Minister refused to discuss the salaries of individuals, but stressed that he has his 10 Downing Street under control.

“I’m in control,” he told BBC South East. “I’m focused and my message to the team is exactly the same every day: we have to deliver. We were elected with a huge mandate to deliver change and I’m determined to do that.”

As the BBC reported on Wednesday, Gray was part of a four-person panel that approved an overhaul of pay scales for advisers.

However, it is understood she did not sign off on her own pay scale; that was handled by the Cabinet Secretary and the Prime Minister. The pay rise meant Gray was paid £3,000 more than Starmer.

Richard Vaughan