The political storm surrounding the prime minister’s decision to appoint Peter Mandelson as US ambassador shows no sign of abating, as ministers confirm that a pre-appointment due diligence report contained damning evidence that was ultimately ignored.
Paymaster-General Nick Thomas-Symonds admitted on Sky News that the report, prepared for Sir Keir Starmer in 2024, raised “serious questions” about the peer’s relationship with the convicted sex offender Jeffrey Epstein. He stated that the prime minister put these questions to Lord Mandelson, was given reassurances, and now “deeply regrets believing” them. “He has apologised for believing what was said to him by Peter Mandelson,” the minister said.
The controversy has intensified with the revelation of the sizeable payout Mandelson received upon his dismissal. Cabinet Office exchanges show he initially demanded £547,201 – the full remainder of his four-year contract – a request the Chief Secretary to the Prime Minister, Darren Jones, called “inappropriate and unacceptable”. He ultimately accepted a £75,000 settlement, a sum officials noted was a success to secure “with minimal fuss”. Mr Thomas-Symonds expressed “moral outrage” that Mandelson kept the money and called for it to be donated to charity.
Overruled Warnings and a ‘Weirdly Rushed’ Process
Newly released government files reveal that Sir Keir overruled explicit warnings from his most senior advisers. Both National Security Adviser Jonathan Powell and Foreign Office Permanent Secretary Philip Barton raised concerns about the “general reputational risk” posed by Mandelson’s history of public scandals. Powell has since described the appointment process as “unusual” and “weirdly rushed”.
The due diligence dossier detailed a relationship with Epstein that spanned from at least 2002 to 2019. It noted that Mandelson facilitated a meeting between Epstein and Tony Blair in 2002 and, critically, that contact continued after Epstein’s 2008 conviction for procuring an underage girl. The report indicated Mandelson stayed at Epstein’s home while the financier was in jail in June 2009 and that emails showed Mandelson expressing support, advising Epstein to “fight for early release”.
Further financial links were alleged, with documents suggesting Mandelson and his husband received upwards of $75,000 in payments from Epstein, beginning in 2003. Mandelson has stated he has no recollection of the money and questioned the authenticity of the bank statements. The released files also show that Mandelson was offered highly classified Foreign Office briefings before his formal vetting was complete, with the highest level of clearance not being initiated until February 2025.
‘Dishonest with Parliament’
The opposition has seized on the disclosures, with Conservative leader Kemi Badenoch accusing the prime minister of a cover-up. She claimed key documents, including the prime minister’s own cover notes, were missing from the released files. “He has been dishonest with parliament and with the country,” Ms Badenoch said. “And Labour MPs, in good conscience, should be looking at whether or not this man should be leading our country.”
Conservative deputy chair Matt Vickers echoed calls for Sir Keir to resign, labelling the appointment a “complete and utter failure of judgment”. SNP Westminster leader Stephen Flynn accused the prime minister of prioritising “Labour Party politics over the interests of Epstein’s victims”.
The prime minister, who is expected to face questions from journalists during a visit to Belfast, has taken responsibility for the appointment, calling it a mistake and stating that Mandelson “lied repeatedly” about his Epstein links. The fallout has already claimed senior aides; Sir Keir’s chief of staff, Morgan McSweeney, and his director of communications, Tim Allan, have both resigned.
Mandelson himself, who resigned from the Labour Party and the House of Lords in February 2026, gave a defiant interview to the BBC’s Laura Kuenssberg after his sacking. He described his association with Epstein as a “terrible mistake” but declined to apologise to the financier’s victims, saying he was not “culpable or knowledgeable”. He also claimed he never saw any wrongdoing and, being gay, believed he was “kept separate” from Epstein’s sexual crimes. Of his future, he said: “I’m not going to disappear and hide – that’s not me,” comments some in Downing Street reportedly viewed as a warning.
The peer is currently under a police investigation for alleged misconduct in public office, relating to reports that he passed government information to Epstein during the 2008 financial crisis while serving as business secretary. This investigation is why the prime minister’s full correspondence with Mandelson has not been made public.
Unrelated Calls for Justice Reform
In separate developments, justice campaigners have warned that proposed changes to inquest law could prevent abusive men from being held accountable for driving women to suicide. The concern centres on government plans to make it harder for inquests to return unlawful killing verdicts.
Such verdicts have been crucial in recent cases. In 2023, an inquest found that Kellie Sutton, whose death was originally classed as suicide, was unlawfully killed after suffering domestic abuse, a landmark ruling believed to be the first of its kind. In October last year, Georgia Barter was also found to have been unlawfully killed following a decade of domestic violence.
Harriet Wistrich, head of the Centre for Women’s Justice, said: “We strongly oppose any reversal of the standard of proof for unlawful killing in inquest verdicts, which would set back the cause of highlighting the issue of recognising the role that domestic abuse plays in relation to the suicides of many women.”
