Starmer ignored Epstein red flags before appointing Mandelson as US ambassador, new files show
Jill Lawless And Brian Melley
London: British Prime Minister Keir Starmer was warned that Peter Mandelson’s friendship with sex offender Jeffrey Epstein exposed the government to “reputation risk” but appointed him ambassador to the US anyway, according to new documents.
Starmer fired Mandelson after nine months on the job as new details emerged about his relationship with Epstein and now faces a political storm over the appointment. New files released on Wednesday (London time) show the prime minister ignored red flags raised by his staff when he appointed the knowledgeable but controversial Mandelson to the UK’s most important diplomatic post.
Mandelson was briefly arrested last month by police investigating allegations that he passed sensitive government information to Epstein fifteen years ago.
Concerns were raised in a document sent to Starmer in December 2024 as the ruling Labor Party considered appointing Mandelson, a senior statesman, to a diplomatic post vital to building relations with US President Donald Trump’s administration.
A “due diligence report” prepared by senior civil servants outlined the relationship between Mandelson and Epstein, dating back to at least 2002 – the year Mandelson “facilitated” a meeting between Epstein and then-Prime Minister Tony Blair – until 2019, the year of Epstein’s death.
“Mandelson reportedly stayed at Epstein’s home in June 2009 while he was in prison” for sex crimes involving a minor, the document states, citing a 2019 report by JPMorgan that said Epstein had a “particularly close relationship” with then-Prince Andrew and Mandelson.
It also touched on unrelated reputational issues related to Mandelson’s work in the previous Labor government (when he was forced to resign twice over financial issues) and his work at Global Counsel, the lobbying firm he co-founded.
Despite the red flags in the documents, Cabinet Minister Darren Jones said due diligence “did not reveal the depth and extent” of Mandelson’s friendship with Epstein. He said Mandelson lied to Starmer about the friendship.
“Peter Mandelson should never have been given the privilege of representing this country,” Jones told MPs in the House of Commons. “On behalf of the House, I reiterate that I deeply regret taking the Prime Minister at his word. It was a mistake to do so.”
Starmer fired Mandelson in September after previously released documents showed the financier maintained contact with Epstein after his 2008 conviction.
More details about Mandelson’s ties to Epstein, revealed in multiple dossiers released by the US Department of Justice in January, raised new questions about Starmer’s decision, prompting opponents and even some members of the ruling Labor Party to call for the prime minister’s resignation.
Starmer is out of immediate danger but his position remains fragile, despite never having met Epstein and not being involved in his crimes.
The 147-page document, released on Wednesday, came after lawmakers forced Starmer’s government to release thousands of files related to its decision to appoint Mandelson to the key diplomatic post at the start of Trump’s second term.
The government says the files will show Mandelson misled authorities.
The documents are published in batches after being examined by the Parliament’s Intelligence and Security Committee. Police asked the government not to release files that could jeopardize the criminal investigation into Mandelson.
The documents state that Mandelson was asked about his relationship with Epstein and that the prime minister’s communications director was “satisfied with his answers.”
Responses have not yet been released due to a police investigation.
And the files raise more questions for Starmer. Following Mandelson’s firing, National Security Adviser Jonathan Powell told the prime minister’s lawyer that he had expressed concerns about “the individual and dignity” and found the appointment process “oddly rushed,” according to the documents.
Opposition Liberal Democrats leader Ed Davey said Starmer had made a “catastrophic error of judgement”.
Conservative MP Alex Burghart said Mandelson may have lied to the prime minister, but this due diligence document did not lie to him.
“The Prime Minister knew everything he needed to know. It was all in his hands. It was now on him. He let his party down. He let his country down. I very much doubt either of them will trust him again.”
The Epstein files, released in January, suggest that Mandelson sent market-sensitive information to the convicted sex offender while he was the UK government’s business secretary after the 2008 financial crisis. This includes an internal government report discussing ways the UK could raise money, including selling state assets.
Mandelson also appears to have told Epstein that he would lobby other members of the government to lower the tax on bankers’ bonuses.
Mandelson, 72, was arrested at his home in London last month on suspicion of abuse of public office. He was released without bail while the police investigation was ongoing.
He had previously denied wrongdoing and was not charged. He is not facing sexual abuse allegations.
He was forced to resign from the House of Lords and lost his £157,000 ($295,000) annual ambassador salary.
Documents show Mandelson sought a payment of £547,000, the remainder of his four-year salary, after he was sacked. Eventually the government gave him £75,000.
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