PM chief of staff Mark Fullbrook no longer paid via firm, says No 10

The prime minister's chief of staff will now be employed directly by the government instead of through a private company, Downing Street has confirmed.

The arrangement had been criticised by the opposition and by some within the Conservative party.

No 10 has said Mr Fullbrook will be put on a special advisor contract to avoid "any ongoing speculation".

Liz Truss appointed Mr Fullbrook as her most senior aide earlier this month.

The news he had been receiving his salary for the role from Fullbrook Strategies, which was set up in March, came despite the firm's website saying it "has currently suspended its commercial activities".

One Conservative source told BBC News the arrangement was "very unwise" and that "people were rather disappointed".

Another source was more blunt, describing it as "tin eared" and "absolutely nuts".

The Liberal Democrats had called for an urgent investigation into any possible conflicts of interest, while Labour described the reports as "shocking" and said they raised "serious questions about the new prime minister's judgement".

A spokesperson for Mr Fullbrook said on Sunday the arrangement was not unusual and that he derived no tax benefit from it.

On Tuesday, a No 10 spokesperson said: "While there are established arrangements for employees to join government on secondment, to avoid any ongoing speculation Mark Fullbrook will be employed directly by the government on a special adviser contract."

They added that all government employees, including those joining on secondment, were subject to the necessary vetting and declared their interests in line with Cabinet Office guidance.