Mandelsons

British Prime Minister Keir Starmer’s chief of staff has quit over the appointment of Peter Mandelson as ambassador to the United States after files revealed the extent of Mandelson’s relationship with the late sex offender Jeffrey Epstein.

“After careful reflection, I have decided to resign from the government. The decision to appoint Peter Mandelson was wrong. He has damaged our party, our country and trust in politics itself,” Starmer’s top aide Morgan McSweeney said in a statement on Sunday.

“I advised the Prime Minister to make that appointment and I take full responsibility for that advice,” he added.

Labour members of parliament had called for McSweeney’s resignation after new evidence about Mandelson’s relationship with Epstein was revealed in the latest tranche of documents and photos from the investigation into the American financier were released by the US Department of Justice. The lawmakers blamed McSweeney for the appointment of Mandelson and the damage caused by the publication of the crude exchanges between him and Epstein.

McSweeney, 48, who was a protege and friend of Mandelson, was accused by some Labour lawmakers and his political opponents of failing to ensure that there were proper background checks when the ambassador was appointed.

In a statement on Sunday, Starmer said it had been “an honour” to work with McSweeney, who had held the role of chief of staff since October 2024.

Mandelson’s payout

Mandelson was sacked by Starmer in September over his friendship with Epstein and last week also quit the Labour Party and House of Lords, the upper chamber of the UK Parliament. The Foreign and Commonwealth Office said it is reviewing an exit payment made to him after he was fired.

Mandelson, a pivotal figure in British politics and the Labour Party for decades, received an estimated payout of between 38,750 pounds and 55,000 pounds ($52,000 to $74,000) after only seven months in the job, according to a report in the Sunday Times newspaper.

Documents released on January 30 by the US Justice Department appeared to show that Mandelson had also allegedly leaked confidential UK government information to Epstein when he was a British minister, including during the 2008 financial crisis.

The Foreign Office said in a statement that it has launched a review into Mandelson’s severance payment “in light of further information that has now been revealed and the ongoing police investigation”.

Mandelson’s lawyers have said he “regrets, and will regret until his dying day, that he believed Epstein’s lies about his criminality”.

“Lord Mandelson did not discover the truth about Epstein until after his death in 2019,” said a spokesperson for the law firm Mishcon de Reya, which represents Mandelson.

“He is profoundly sorry that powerless and vulnerable women and girls were not given the protection they deserved,” the law firm added.

Starmer’s political future in peril?

The departure of McSweeney has thrown the future direction of the government into doubt, less than two years after the Labour Party won one of the largest parliamentary majorities in modern British history.

With polls showing Starmer is already hugely unpopular with voters, some in his own party are openly questioning his judgement and future, and it remains to be seen whether McSweeney’s exit will be enough to silence his critics.

Cabinet minister Pat McFadden earlier insisted Starmer should remain in office despite his “terrible mistake” in appointing Mandelson.

The close Starmer ally told broadcasters the party should stick with the prime minister.

“He [Starmer] should be realistic and accept that this has been a terrible story, that this appointment was a terrible mistake,” McFadden, the work and pensions secretary, told BBC television.

He said the real blame lay “squarely with Peter Mandelson”, who put himself forward for the job despite knowing the extent of his relationship with Epstein.

But according to a report by the Sunday Telegraph, Starmer’s deputy, David Lammy, has become the first cabinet minister to appear to distance himself from Starmer.

The deputy prime minister had not been in favour of appointing Mandelson due to his known links to Epstein, the report quoted friends of Lammy as saying.

Directly addressing Epstein’s victims, he said: “I am sorry, sorry for what was done to you, sorry that so many people with power failed you. Sorry for having believed Mandelson’s lies and appointed him and sorry that even now you’re forced to watch this story unfold in public once again.”

Prime Minister Keir Starmer says ex-envoy Peter Mandelson should no longer hold a seat in the upper house of parliament.

Police in the United Kingdom have announced they are reviewing allegations of misconduct in public office following revelations that London’s former ambassador to Washington leaked confidential government information to the late financier and sex offender Jeffrey Epstein.

The announcement by the Metropolitan Police on Monday came after investigative files released by United States authorities revealed that Peter Mandelson shared government plans with Epstein while serving as a UK minister.

Mandelson, who served as business secretary under former Prime Minister Gordon Brown, told Epstein about asset sales and tax changes under consideration by London in 2009, as well as plans for the 500 billion euro ($590bn) bailout of the single currency in 2010, according to emails released by the US Department of Justice on Friday.

“Following this release and subsequent media reporting, the Met has received a number of reports relating to alleged misconduct in public office. The reports will all be reviewed to determine if they meet the criminal threshold for investigation,” Metropolitan Police Commander Ella Marriott said in a statement.

“As with any matter, if new and relevant information is brought to our attention we will assess it, and investigate as appropriate,” Marriott added.

The Metropolitan Police did not name Mandelson, but its statement came after the leader of the pro-independence Scottish National Party said he had written to the police commissioner urging him to investigate the former ambassador for alleged misconduct in public office.

Earlier on Monday, Prime Minister Keir Starmer announced an inquiry into Mandelson’s ties to Epstein.

Starmer, who sacked Mandelson as London’s top diplomat in Washington last year after the emergence of correspondence detailing his ties to Epstein, also said the former minister should lose his lifelong appointment to the UK’s upper house of parliament.

On Sunday, Mandelson resigned from the governing Labour Party, whose return to electoral dominance he helped to engineer in the 1990s, citing his wish to avoid causing further embarrassment to his colleagues.

In further fallout in the UK on Monday, the charity launched by Sarah Ferguson, the ex-wife of Andrew Mountbatten-Windsor, announced that it would close “for the foreseeable future” amid revelations about her friendly relationship with Epstein.

“Our chair Sarah Ferguson and the board of trustees have agreed that with regret the charity will shortly close for the foreseeable future,” a spokesman said in a statement, without elaborating on the reasons for the closure.

Separately on Monday, the US Justice Department said it had removed thousands of Epstein-related files from the internet after lawyers representing some of his alleged victims said their identities had been exposed due to insufficient redactions in the latest release of documents.