Sue Gray will start work as Keir Starmer’s chief of staff by the autumn after a ruling by the watchdog on post-government jobs but is facing a rap on the knuckles from the Cabinet Office alleging she broke the civil service code.
Starmer said he was delighted that Gray would be starting her job in his office before the next election, after the Advisory Committee on Business Appointments (Acoba) said she needed to wait six months after leaving her role in the Cabinet Office last March.
Nevertheless, the former senior civil servant, who carried out an inquiry into Partygate, is likely to face criticism from Oliver Dowden, the most senior minister in the Cabinet Office, who will reveal on Monday that the government has found a “prima facie breach” of the civil service code.
In a written statement, he is likely to say a government investigation found that Gray did not keep to the rules because she had discussions with Labour about the possible role without informing her bosses between October last year and March.
A Whitehall source said Dowden had driven the censure of Gray even though some senior civil servants had advised against taking such a hard line and that it was a political decision aimed at attacking Starmer.
Some senior government figures had also pushed for Gray to have to wait for a year before taking up a post with Labour, but Acoba has recommended a shorter period of six months.
The Acoba report, published on Friday, also revealed Gray was first approached by Starmer about the job in his team in late October 2022. In a phone call, he said Labour was preparing for government and raised the idea that she might serve the team in a senior capacity – possibly as chief of staff.
Gray said she had “subsequent brief informal conversations with his team about a potential role for preparing for government were she to leave the civil service” and told Acoba she did not believe there was a conflict with the specifics of her work.
She told the committee there was no formal offer of employment until 2 March 2023 – the day after media speculation began about her potentially joining Starmer’s team.
After the appointment was announced, Gray was criticised by some Conservatives, including Boris Johnson, who cast doubt retrospectively on her report into Covid lockdown gatherings at No 10, which was completed in May last year. Nevertheless, her former departments said there was no evidence Gray made any decisions in expectation of the role with Labour and the Partygate report was not material to this application in their view.
Starmer, who had pledged to abide by Acoba’s ruling, said he was delighted that Gray would be joining his team.
He said: “Sue will lead our work preparing for a mission-led Labour government. She brings unrivalled experience on how the machinery of government works – and is a woman of great integrity. Should we be privileged enough to be elected, Sue will ensure we’re able to hit the ground running. I look forward to her starting.
“I’m also grateful to Acoba for their work. We have followed the process and accept their advice.”
The Acoba report revealed the government had raised some concerns about Gray’s move to Labour potentially risking the integrity of the civil service. Her former departments said a high-profile senior civil servant taking on “a visible political role will clearly have implications for the perceived impartiality of the civil service. Public confidence in the service relies on our ability to demonstrate adherence to the civil service code – especially at the most senior levels.”
The committee, led by the Conservative peer Eric Pickles, said it shared some concerns but concluded there were “limited risks associated with information gained from Ms Gray’s time as second permanent secretary and agreed these can be appropriately mitigated by: the conditions which prevent her making use of privileged information in office; her ongoing duty of confidentiality; and a gap between her leaving office and taking up the role”.
Acoba raised concerns about the strength of a Cabinet Office report on Gray’s departure and the length of the ban. A longer restriction could have hampered Starmer’s preparations for the general election, which is expected to take place in autumn 2024.
Gray will be in place to help with transition arrangements for a possible Labour government, which typically take place between senior Whitehall officials and opposition parties about six months before an election.
The government has separately been considering whether Gray broke the civil service code by entering discussions about the job while still employed in the Cabinet Office. It agreed to put this inquiry on hold while Acoba was considering its recommendations.
The Acoba report said it was a matter for the government whether the code had been breached, but added: “In relation to the rules, no evidence has been provided by the departments to demonstrate Ms Gray made decisions or took action in office which favoured the employer in expectation of this role. This includes her role in the ‘Partygate’ investigation.
“The Department for Levelling Up, Housing and Communities and the Cabinet Office confirmed this investigation is not material to the committee’s consideration.”
