Mandelson papers reveal Keir Starmer ignored warnings over his links to Epstein
Sir Keir Starmer’s judgment is under renewed attack after newly released documents reveal he was warned in detail about the dangers of appointing Lord Peter Mandelson as ambassador to the US.
The first tranche of documents relating to Lord Mandelson’s employment shows that the prime minister was informed that the pedophile financier had “close ties” to Jeffrey Epstein, even after he was first convicted of procuring an underage girl in 2008, and that hiring him would pose a “public reputation risk” for his government.
The files make clear that Sir Keir ignored warnings after it emerged that his then chief of staff Morgan McSweeney and former communications director Matthew Doyle, described in documents as Lord Mandelson’s “personal friend”, had backed Labour.
The files also revealed that Lord Mandelson, who was sacked in September as the government sought to avoid a protracted legal battle, was given a taxpayer-funded payment of £75,000, but first claimed more than £500,000.
Among the explanations in the documents were the following:
- Sir Keir was told Lord Mandelson stayed at Epstein’s home and they kept in touch while he was business secretary.
- PM warned about Mandelson’s China links and business interests
- National security adviser Jonathan Powell thought the appointment was “grotesquely rushed”, while Sir Philip Barton, the most senior civil servant at the Foreign Office (FCDO), also objected
- Lord Mandelson arranged a meeting between Epstein and Sir Tony Blair in 2002, saying the financier was “young, energetic” and “safe”.
The 31 files released by the government did not include correspondence between No 10 and Lord Mandelson; These cables raised a number of follow-up questions about his relationship with Epstein because they remained the subject of an ongoing police investigation into allegations of misconduct in public office.
Sir Keir insisted Lord Mandelson “lied repeatedly” to No 10 about his entire relationship with Epstein, but documents reveal senior officials had concerns about his appointment.
A recording of the call between Mr. Powell and the prime minister’s top adviser, Mike Ostheimer, said the NSA “expressed concerns about the individual and reputation” to Mr. McSweeney.
“MM responded that the issues were being addressed,” according to a note of the call made in September 2025 as part of the fact-finding process regarding Lord Mandelson’s dismissal.
The documents pile further pressure on a prime minister whose future has been in doubt for months and raise concerns about the decision to appoint Lord Mandelson, who has twice been sacked from government posts, when there are a number of career diplomats available.
MPs were furious that documents released after Labor rebels backed a Conservative motion to release them were revealed after Prime Minister’s Questions, leaving the Chancellor of the Duchy of Lancaster, Darren Jones, to answer the questions rather than the prime minister.
Conservative Party leader Kemi Badenoch said: “Mandelson reportedly leaked sensitive government documents. Starmer knew Mandelson remained close friends with Epstein after he was convicted for child prostitution, but made him ambassador anyway. Now we see he paid Mandelson almost £80,000 of our money. His decision is shocking.”
Mr Jones defended the payout, telling MPs in the House of Commons: “It appears the agreement was to avoid higher costs involving a protracted legal claim in the employment tribunal.”
Labor MP Richard Burgon said: “It is clear that the Prime Minister will not allow this Peter Mandelson to become the Labor candidate for the council, instead he has been elevated to these most important positions despite what is on the document.
Justin Madders, a former minister in Starmer’s government, added: “If one of my constituents came to see me and told me they had lost their job or been sacked because they lied during the application process and wanted compensation, I would tell them they had absolutely no chance of doing that.”
Meanwhile, Tory shadow cabinet minister Alex Burghart said: “These documents just confirm what we already knew. When Keir Starmer appointed Mandelson as US ambassador, he was clearly aware of the relationship between Mandelson and the world’s most notorious pedophile.”
Sir Ed Davey called the documents “Britain’s Epstein files” and called on Lord Mandelson to donate his £75,000 payout to charity. Conservatives have also called on him to take back his repayment.
A second, potentially more damaging set of documents will be released once police are satisfied it does not interfere with the criminal investigation into Mandelson, but Mr Jones said these files would “show the prime minister was lied to” by Mandelson and accepted that Mandelson “should never have been allowed to represent the UK”.
He insisted Sir Keir “regrets appointing him as ambassador”.
Regarding Mandelson’s Global Counsel lobbying firm, the document states: “Reputational risks may arise in relation to any of these clients’ dealings with the UK or US government. Global Counsel did not declare any lobbying clients in the last quarter of the Sunak Administration; media reports note that the group has expanded since the election.”
TikTok lists clients including Shell, Accenture, Premier League, JP Morgan, Santander, BP, Sizewell C and Shein.
Sir Keir is facing questions about an off-the-record meeting he had with Mandelson with another client, Palantir, while he was ambassador in Washington.
