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Government releases documents on Mandelson appointment
UK Prime Minister Sir Keir Starmer was cautioned about the reputational risks tied to Lord Peter Mandelson's association with convicted sex offender Jeffrey Epstein before approving his appointment as US ambassador, newly disclosed government files reveal.
Due diligence flagged post-conviction contact
A risk assessment delivered to Starmer on 11 December 2024-nine days before Mandelson's confirmation-highlighted that the two men maintained a relationship after Epstein's 2008 conviction for procuring an underage girl. The document referenced a 2019 JP Morgan report that described Epstein and Mandelson as having a "particularly close relationship." It also noted that Mandelson reportedly stayed at Epstein's residence in June 2009 while the financier was incarcerated.
Process flaws acknowledged
Darren Jones, the prime minister's chief secretary, told Parliament that the vetting process "fell short" and that the government had already begun addressing systemic weaknesses. Former national security adviser Jonathan Powell described the appointment timeline as "weirdly rushed" in a 12 September 2025 call with Starmer's then-chief of staff, Morgan McSweeney. Powell also relayed that Philip Barton, the Foreign Office's top civil servant at the time, had expressed "reservations" about the nomination.
Severance dispute and settlement
Following his dismissal last September, Mandelson initially sought a severance payment exceeding £500,000-equivalent to the remaining salary for his four-year term. The Treasury ultimately approved a £75,000 payout. Jones condemned the peer's stance as "inappropriate and unacceptable," though the government agreed to the settlement to avoid higher legal costs. Mandelson has disputed the £500,000 figure, stating he promptly accepted the final offer and made clear he would not pursue an employment tribunal.
Political fallout and police investigation
Conservative leader Kemi Badenoch demanded Starmer "consider his position" after the documents suggested he was not fully transparent about the extent of Mandelson's ties to Epstein. The Liberal Democrats urged Mandelson to donate his severance to charity. Meanwhile, the Metropolitan Police has requested that some files be withheld to avoid prejudicing its ongoing criminal investigation into Mandelson, who was arrested in March on suspicion of misconduct in public office. His bail conditions were lifted last week.
Mandelson's defence
The former Labour minister maintains he did not lie to Starmer, asserting he answered all written questions about post-conviction contact with Epstein truthfully. He claims he accepted Epstein's version of events until learning the full truth after the financier's 2019 death. Mandelson resigned from the Labour Party in February and has repeatedly stated he acted without personal gain and is cooperating with authorities.
Next steps
The government has pledged to release all remaining documents related to Mandelson's appointment, excluding those that could compromise national security or the police inquiry. Parliament's Intelligence and Security Committee is reviewing the files to determine what can be made public. A set of follow-up questions sent by Downing Street to Mandelson regarding his Epstein ties remains unpublished at police request.
