Starmer warned of ‘reputational risk’ over Mandelson’s links to Epstein

Sir Keir Starmer was warned there was a “general reputational risk” over Lord Peter Mandelson’s relationship with paedophile financier Jeffrey Epstein before giving him the role of ambassador to the US.

The Government has released an initial batch of papers relating to Lord Mandelson’s appointment after MPs ordered the publication of the files.

A “due diligence” document drawn up in December 2024 before Lord Mandelson’s appointment to the Washington role noted a series of reports detailing his links with Epstein.

The document noted that after Epstein was first convicted of procuring an underage girl in 2008 “their relationship continued across 2009-2011, beginning when Lord Mandelson was business minister and continuing after the end of the Labour government”, noting that “Mandelson reportedly stayed in Epstein’s house while he was in jail in June 2009”.

Lord Mandelson was appointed in December 2024 but sacked in September 2025 after further details about the extent of his contact with Epstein emerged.

The documents released by the Government on Wednesday showed he was awarded a £75,000 severance payout funded by taxpayers.

Last month, MPs ordered the Government to release tens of thousands of documents relating to Lord Mandelson’s appointment following the US Department of Justice’s publication of the so-called Epstein Files.

The Prime Minister has insisted Lord Mandelson “lied repeatedly” to No 10 about his relationship with Epstein, before and during his tenure as ambassador.

The first tranche of documents does not include correspondence between No 10 and Lord Mandelson, in which a number of follow-up questions were asked about his relationship with Epstein.

Chief Secretary to the Prime Minister Darren Jones updated MPs on the release of the Mandelson papers in a statement on Wednesday afternoon.

He said: “Whilst the documents point to public reports of an ongoing relationship between Peter Mandelson and Jeffrey Epstein, the advice did not expose the depth and extent of their relationship, which only became apparent after the release of further files by Bloomberg and then the United States Department of Justice.

“After the Prime Minister reviewed the Cabinet Office due diligence, that noted public reporting on Peter Mandelson’s relationship with Jeffrey Epstein, questions were put to Peter Mandelson by advisers in No 10 …. and Peter Mandelson responded.

“These are matters that are currently the subject of an ongoing police investigation and we will publish this document when the investigation allows.

“When we do, the House will be able to see Peter Mandelson’s answers for themselves, which the Prime Minister regrets believing.”

The release of the documents was ordered when MPs backed a “humble address” motion tabled by the Tories, a rarely used manoeuvre which compels the Government to act.

Some files have been withheld for national security or foreign relations reasons, but the final say over which documents are redacted rests with Parliament’s Intelligence and Security Committee.

The Government has also agreed a framework with the Metropolitan Police on which documents can be released without prejudicing the ongoing police investigation into Lord Mandelson over allegations of misconduct in public office.

Mr Jones told ITV’s Good Morning Britain: “On the specific issue of Peter Mandelson’s appointment as ambassador to the United States, the Prime Minister has apologised for his appointment and said that it was a mistake.

“The documents that will be published later today to Parliament will provide full transparency about the appointments process, bar one document that has been held back by the Metropolitan Police because of an ongoing criminal investigation.

“The Prime Minister said that we only really knew of the depth and extent of Peter Mandelson’s ongoing relationship with Jeffrey Epstein once documents had been published by first Bloomberg and then the United States Department of Justice.

“As soon as those documents became available, and it became obvious that Peter Mandelson had lied to the Prime Minister about the depth and extent of his relationship, he was sacked as ambassador the United States very promptly.”

Lord Mandelson was arrested on February 23 on suspicion of misconduct in public office, having been accused of passing sensitive information on to Epstein during his time as business secretary.

He was subsequently bailed, but later released from his bail conditions, although he remains under investigation.