Mandelson papers reveal Keir Starmer ignored warnings over peer’s links to Epstein
Sir Keir Starmer’s decision is under renewed attack after newly released documents revealed he was warned in detail about the dangers of appointing 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 former minister had “close ties” to Jeffrey Epstein, even after the pedophilia financier 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 a “personal friend” of Lord Mandelson, had backed Labour.
The files also revealed Lord Mandelson received a taxpayer-funded payment of £75,000 following his dismissal in September; The government was trying to avoid a protracted legal battle but had first demanded more than £500,000.
Among the explanations in the documents were the following:
- Sir Keir was told that Lord Mandelson “reportedly stayed at home while Epstein was in prison” and that the two men had been in contact while Lord Mandelson was business secretary.
- The Prime Minister was warned about Lord Mandelson’s China connections and business interests as part of a “due diligence” document prepared by the Cabinet Office in December 2024.
- National security adviser Jonathan Powell thought the appointment was “grotesquely rushed”, while Sir Philip Barton, the Foreign Office’s (FCDO) most senior civil servant, also objected.
- Lord Mandelson arranged a meeting between Epstein and Tony Blair in 2002, saying that Epstein was “young, vibrant” and “safe”.
The 31 files released by the government did not include correspondence between No 10 and Lord Mandelson; These communications raised a number of follow-up questions about his relationship with Epstein because they remained subject to an ongoing police investigation into allegations of misconduct in public office.
Sir Keir insisted Lord Mandelson “repeatedly lied” to No 10 about the “depth and extent” of his 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 Mr. Powell “expressed concerns about the individual and reputation” to Mr. McSweeney.
He added: “MM [Morgan McSweeney] He stated that the issues had been resolved.” The call was made in September 2025 as part of the information gathering 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 plenty of diplomats available to take on the role.
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 Duchy of Lancaster Chancellor 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.”
Speaking in the House of Commons, Mr Jones defended the payout, telling MPs: “It appears the agreement was to avoid even higher costs due to a protracted legal claim in the employment tribunal.”
Labor MP Richard Burgon said: “It is clear that the Prime Minister will not allow this individual, Peter Mandelson, to become a Labor candidate for the council; instead, despite the information contained in the document, he has been elevated to these most important positions.”
Justin Madders, a former minister in Sir Keir’s government, added: “If one of my constituents came to see me and said they had lost their job or been made redundant because they lied during the application process and wanted compensation, I would tell them there was absolutely no chance of them doing that.”
Meanwhile, Conservative 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. The Conservative Party also called on him to take back the payment.
Last month, lawmakers ordered the government to release tens of thousands of documents related to Lord Mandelson’s appointment, following the publication of the Epstein files by the US Department of Justice.
A second, potentially more damaging set of documents will be released once police are satisfied it will not interfere with the criminal investigation into Lord Mandelson, but Mr Jones said these files would “show the prime minister was lied to” by the former ambassador, and Mr Jones admitted he “should never have been allowed to represent the UK”.
He insisted Sir Keir “regrets appointing him as ambassador”.
The decision to appoint the former EU trade commissioner and UK trade secretary was driven by the need to establish a close relationship with US president Donald Trump, who returns to the White House in January 2025. But an official memo to the prime minister warned of the risks of making a political appointment: “If something goes wrong, you may be more exposed because the person is more personally connected to you.”
Regarding Lord Mandelson’s Global Counsel lobbying firm, the document states: “Reputational risks may arise in relation to those 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.”
The list lists a number of the firm’s clients, including TikTok, Shell, Accenture, Premier League, JPMorgan, Santander, BP, Sizewell C and Shein.
Sir Keir faces questions about an off-the-record meeting he had with Lord Mandelson and another client, Palantir, while he was ambassador in Washington.
The due diligence document also highlights that Lord Mandelson agreed to become a “founding citizen” of an ocean conservation group founded by Ghislaine Maxwell in 2014 and funded by Epstein. Disgraced socialite Maxwell is a former girlfriend of Epstein and was sentenced to 20 years in prison in the US in 2022 for sex trafficking.
