The Metropolitan Police has released Peter Mandelson from his bail conditions, though the former Labour peer and ambassador remains under investigation for suspected misconduct in public office. The investigation centres on allegations that he passed sensitive government information, including Downing Street emails and market-sensitive details, to the convicted sex offender Jeffrey Epstein.
The development marks a new phase in a scandal that has ensnared high-profile British figures and continues to send political shockwaves. Lord Mandelson, a key architect of New Labour, was arrested on February 23rd following searches of his London and Wiltshire properties, but detectives have since determined he is not a flight risk and returned his passport.
A Downing Street Meeting and a ‘Best Pal’
The origins of the controversy stretch back decades. Documents from the US Department of Justice’s so-called Epstein files confirm that Tony Blair, while Prime Minister, met Jeffrey Epstein in Downing Street on May 14, 2002. The meeting was facilitated by Peter Mandelson, who had described Epstein as a “friend” and “safe” to Mr Blair’s then chief of staff, Jonathan Powell.
A briefing memo prepared for the former Prime Minister described Epstein as a friend of both Mandelson and former US President Bill Clinton, and as being close to the Duke of York. A spokesperson for Sir Tony has stated the meeting occurred long before the full extent of Epstein’s crimes was known.
Further correspondence reveals the depth of Mandelson’s connection. He described Epstein as his “best pal” in a 2003 birthday book message. Emails suggest that years later, while serving as Business Secretary under Gordon Brown, Mandelson passed a confidential 2009 memo about potential government asset sales to Epstein and sought the financier’s help with a banking deal in 2010.
Blair Family Defence and a Political Reckoning
Amid the police investigation, Mandelson resigned from the Labour Party and the House of Lords in February 2026. He had already been sacked as UK Ambassador to the United States in September 2025, a role to which he was appointed by Prime Minister Keir Starmer. Newly released documents show that after his dismissal, Mandelson was offered a £75,000 severance payment, having initially requested over £500,000.
His political ally Cherie Blair has publicly come to his defence. Speaking on Times Radio, the wife of the former Prime Minister said she felt “very sad” that Lord Mandelson had seen his life “fall apart” and urged critics to remember he is “still human” and entitled to a fair trial. She attributed the culture of condemnation to social media and said she did not believe her husband had been “drawn” into the Epstein controversy, suggesting the 2002 meeting occurred because “it was Bill Clinton who asked him to meet Epstein”.
Her comments highlight the ongoing political discomfort. Prime Minister Starmer has faced scrutiny for appointing Mandelson as ambassador, given that officials had flagged a “general reputational risk” due to his relationship with Epstein. Mr Starmer has stated he made a mistake and apologised to Epstein’s victims. His current national security adviser, Jonathan Powell—the same official who facilitated the 2002 Blair-Epstein meeting—was also involved in the vetting process.
Royal Link and a Revelatory Photograph
The scandal’s reach extends into royal circles. Prince Andrew, the King’s brother, was also arrested on suspicion of misconduct in public office days before Mandelson, accused of sharing sensitive information with Epstein during his tenure as a UK trade envoy. The Prince, stripped of his royal titles in October 2025, features prominently in the Epstein files, which contain allegations of sexual misconduct made by Virginia Giuffre, which he denies.
A newly surfaced photograph, believed to have been taken between 1999 and 2000 on Epstein’s estate on Martha’s Vineyard, provides a stark visual link. It shows Lord Mandelson and the then-Duke of York sitting with Jeffrey Epstein, all three wearing bathrobes. It is the first known image of the trio together. The Epstein files also contain other images of Mandelson, including one of him receiving a foot massage and another showing him in his underwear. He has denied any sexual misconduct or prior knowledge of Epstein’s crimes.
The police investigation took an unusual turn when the Metropolitan Police apologised to Commons Speaker Sir Lindsay Hoyle. The apology was issued after officers accidentally revealed his identity following his provision of information suggesting Mandelson was planning to flee to the British Virgin Islands.
Both Lord Mandelson and Prince Andrew have consistently denied any wrongdoing regarding their associations with Epstein. They are under investigation for misconduct in public office, not for any sexual offences. The continued fallout from the Epstein files ensures that their links to the disgraced financier, and the actions of the political establishment that enabled them, remain under intense scrutiny.
