Starmer facing Labour unrest over Mandelson scandal

Sir Keir Starmer knew about Lord Peter Mandelson’s ongoing friendship with convicted paedophile Jeffrey Epstein when he appointed him ambassador to the US, but claimed the peer “lied repeatedly” about the extent of the relationship.

In a sign of Labour anger over the scandal, the Prime Minister was forced into a climbdown over the release of documents relating to Lord Mandelson’s appointment.

Sir Keir had wanted the top civil servant Sir Chris Wormald to decide what documents could not be released on national security grounds or because they could prejudice international relations.

But under pressure from Labour MPs, led by former deputy leader Angela Rayner, he accepted the decision could be made by Parliament’s Intelligence and Security Committee (ISC) instead.

Lord Mandelson, a political appointment rather than a career diplomat, was sacked from his Washington role in September last year over his links with Epstein, who died in 2019.

His continued association with Epstein following a 2008 conviction for soliciting a minor had been widely reported before his return to the political frontline, when he was named as ambassador in 2024.

At Prime Minister’s Questions, Tory leader Kemi Badenoch – who has led the parliamentary push for papers relating to the appointment to be disclosed – repeatedly asked Sir Keir if he knew Lord Mandelson’s friendship with Epstein had continued after the conviction.

She said: “Can the Prime Minister tell us did the official security vetting he received mention Mandelson’s ongoing relationship with the paedophile Jeffrey Epstein?”

Sir Keir replied: “Yes it did. As a result, various questions were put to him.”

The Prime Minister told MPs: “What was not known was the depth, the sheer depth and the extent of the relationship. He lied about that to everyone for years, and new information was published in September showing the relationship was materially different from what we’d been led to believe. When the new information came to light, I sacked him.”

The Tories tabled a humble address motion in the Commons, an arcane parliamentary mechanism to compel the Government to release documents including due diligence work carried out by the Cabinet Office and emails between Lord Mandelson and his ally Morgan McSweeney, the Prime Minister’s chief of staff.

To address the potential security concerns, Mrs Badenoch suggested the ISC could decide what documents could be released but Sir Keir insisted the Cabinet Secretary and Government legal teams should make the judgment.

In a sign Sir Keir is losing authority over his back benches, during a debate on the Tory motion Labour MPs pushed for the ISC to be given the key role.

Ms Rayner suggested the ISC would help with “keeping public confidence” in the process.

Frantic behind-the-scenes negotiations took place in the Commons to reach a compromise to avoid a Labour revolt.

A Conservative spokesman said: “Kemi forced Starmer to admit he’d known Mandelson was still hanging out with Epstein after the child sex conviction, and No 10 went ahead and appointed Mandelson anyway.

“You could feel in the Commons that was the moment Labour MPs stopped backing the Prime Minister. The Government have now had to cave to Kemi’s demand for all documents to go to the ISC. Starmer is no longer in control, Kemi is calling the shots.”

Documents released as part of the US Department of Justice’s Epstein Files appear to show Lord Mandelson passing potentially market-sensitive information to his friend in 2009, while he was business secretary in Gordon Brown’s government.

Lord Mandelson has been approached for comment and while he has yet to speak publicly, the BBC said it understood he maintains he did not act criminally and that his actions were not for personal gain.

The BBC reported Lord Mandelson argues he had sought Epstein’s expertise in the national interest before the financial crisis.

Sir Keir said: “Mandelson betrayed our country, our Parliament and my party.

“He lied repeatedly to my team when asked about his relationship with Epstein before and during his tenure as ambassador, I regret appointing him.

“If I knew then what I know now, he would never have been anywhere near government.”

Lord Mandelson has quit the House of Lords, but Sir Keir said legislation was being drafted to stop him from continuing to use his title.

And he said he had agreed with the King that Lord Mandelson should no longer be a privy counsellor – which allows him to be described as “right honourable” – because he had “brought the reputation of the Privy Council into disrepute”.