Sir Keir Starmer’s embattled former chief of staff Sue Gray will miss a meeting of regional leaders seen as key to her new role as she takes a break before returning to work, it is understood.
The Prime Minister will on Friday convene metro mayors and first ministers of devolved administrations for the first gathering of his Council of the Nations and Regions in Scotland.
He hailed the announcement of around £24 billion in investment for green projects across Britain as a “vote of confidence” in the UK ahead of the talks, which will focus on driving growth across different parts of the country.
However, Ms Gray, whose new position as “envoy to the nations and regions” was confirmed on Sunday after weeks of turmoil behind the scenes in Number 10, will be a notable absence as she takes a brief hiatus before changing jobs.
Questions about the details of her role as envoy have mounted this week, with further information expected to be set out by the Cabinet Office shortly.
Cabinet ministers have insisted there is a strong team inside Downing Street despite Ms Gray being replaced by former campaign manager Morgan McSweeney after weeks of leaks and hostile briefings against her.
Ms Gray, a former senior civil servant with decades of Whitehall experience, cited “intense commentary about my position” that risked becoming a “distraction” when she stood down.
On Friday Sir Keir will meet first ministers, deputy ministers and regional mayors as part of an effort to “rewire” the way the UK Government interacts with devolved powers and discuss how to boost business ahead of the International Investment Summit next week.
Labour leaders including Sadiq Khan welcomed the gathering, but SNP First Minister John Swinney vowed to use the meeting to talk about how to “stop the austerity agenda.”
Ahead of the first council meeting, Downing Street announced around £24 billion in private investment for Britain’s clean power projects, including Iberdrola – one of Europe’s biggest energy firms – doubling its backing from £12 billion to £24 billion through Scottish Power over the next four years.
Sir Keir said: “Today’s investments are a huge vote of confidence in this government and our relentless focus to drive growth across the UK.
“Whether you’re in Scotland, Wales, Northern Ireland or England – we are creating the conditions for businesses to thrive, and our International Investment Summit will be a springboard for every part of the UK to be an engine of innovation and investment.
“Today I’m convening the first ever Council of Nations and Regions, because it is when we work together in the spirit of genuine partnership, that we can deliver the real change people want to see and improve opportunities for all.”
Mr Swinney said he would “speak frankly about the big issues” north of the border, adding that “I hope to persuade the Prime Minister of the transformative potential of public sector investment to stop the austerity agenda”.
The First Minister has committed to the reset in relations sought by the Labour administration with devolved powers, though the SNP remains strongly opposed to the decision to cut the winter fuel payment.
Meanwhile London Mayor Mr Khan hailed the gathering as a “watershed moment” which made clear “this Government understands that harnessing the power of our nations and city regions can play a major role in tackling some of the biggest issues we face as a country”.
Iberdrola executive chairman Ignacio Galan praised the Government’s “clear policy direction” as one of the reasons the firm had chosen to double its investments.
“This is a vote of confidence in the UK’s clear and stable policies and is a major boost to the economy and the path towards green energy security and net zero,” he said.
Ahead of Friday’s meeting, Sir Keir appointed Poppy Gustafsson, former head of cybersecurity firm Darktrace, to be his new “investment minister” in a bid to demonstrate the Government’s commitment to strengthening ties with business.
Downing Street said the Prime Minister is also asking ministers to review how their departments can support the Office for Investment, which is to be led by Ms Gustafsson in her new role, in its work to drive growth across the UK.
