Sue Gray 'rejects' Prime Minister's job offer - which would have seen her as UK government 'envoy' to Stormont Executive

​Ms Gray – a former permanent secretary at Stormont’s department of finance – would have become a go-between for UK ministers and the administrations in Belfast, Edinburgh and Cardiff.

When Labour came to power in the summer, ministers reportedly had concerns about her involvement in pushing for the failed Euro 2028 Casement Park stadium project. She was accused of “subverting cabinet” in attempts to secure funding for the GAA stadium.

The Times newspaper carried a number of allegations about her involvement in discussions over the stadium project, in which it alleged she angered ministers by “personally dominating” negotiations.

Number 10 officials said at the time they “don’t recognise” the reporting in the newspaper and said that discussions about Casement Park would follow the usual government processes.

The issue brought to a head concerns within the new Labour government about Ms Gray’s remit, with an unnamed Whitehall source criticising her involvement as “an unelected member of staff spending public money on an area of interest to them, subverting cabinet”.

Ms Gray was reportedly due to take up the new envoy job after she resigned from her position at the heart of Government in October.

This followed intense media speculation about a power struggle within Downing Street. The former chief of staff was said to be taking a holiday before taking up her new post.

Downing Street had previously described the proposed new job as “vital” in strengthening its relationships with the nations and English regions.

Downing Street said Sue Gray had “decided not to take up the role” as envoy. Asked whether the job offer was withdrawn or if Sir Keir Starmer’s former chief of staff walked away, a No.10 spokeswoman said: “the appointment had been agreed and you had the focus for the new role and the original statements from both the PM and Sue Gray"