The release of the first 147-page tranche of the “Mandelson Files” has sent shockwaves through the heart of the Labour government today, painting a damning picture of the decision to appoint Lord Mandelson as the UK’s Ambassador to the United States.
The documents, released under intense parliamentary pressure following a threat of massive backbench revolt, reveal that Prime Minister Keir Starmer was explicitly warned of a “reputational risk” regarding Mandelson’s ties to Jeffrey Epstein before he was appointed US Ambassador.
At the centre of the storm is the revelation that the government’s own National Security Adviser, Jonathan Powell, described the appointment process as “unusual” and “weirdly rushed.”
Given these concerns, it is surprising that the “due diligence” report provided to the Prime Minister before the appointment appears to consist of a mere two-page Word document, which Whitehall sources have described as being largely “cut and pasted from Google.” This cursory check occurred despite the report itself flagging that Mandelson’s relationship with Epstein continued long after the financier’s 2008 conviction for soliciting prostitution from a minor.
The dossier further complicates the narrative surrounding Mandelson’s sacking as it reveals a substantial severance payout to the disgraced former Labour grandee of £75,000. Despite the figure being described as “good value for money” by Foreign Office permanent secretary, Oliver Robbins, it has drawn fierce criticism from across the political spectrum.
Records show that Mandelson originally demanded a staggering £547,000 compensation package and threatened the Government with an employment tribunal.
The historical depth of the Mandelson-Epstein connection is also laid bare in an email from May 2002. In the message, Mandelson wrote to Jonathan Powell—then chief of staff to Tony Blair – describing Epstein as a “young and vibrant” financial adviser and a “friend of Bill Clinton.” He successfully lobbied for a meeting between Blair and Epstein, which took place in Downing Street later that day. While the Times reports a spokesperson for Tony Blair has stated that the former Prime Minister did not engage with Epstein after 2002, the email underscores Mandelson’s long-standing role as a bridge between the British political elite and the disgraced financier.
For Keir Starmer, the release of these documents will do nothing to silence the PM’s critics who have accused Sir Keir of a major crisis of judgment. The files confirm that Downing Street’s director of communications at the time was “satisfied” with Mandelson’s explanations regarding Epstein, despite the meagre due diligence report flagging that the peer had stayed at Epstein’s Manhattan home while the latter was serving time in jail in 2009. Conservative shadow ministers have been quick to point out that the Prime Minister, a former Director of Public Prosecutions, should have seen through what they describe as “nonsense” explanations.
The timing of the release, shortly after Prime Minister’s Questions, has only added to the fury, with accusations that Number 10 is attempting to “dodge scrutiny.” Cabinet Office Minister Darren Jones defended the timing, citing the Commons timetable, and reiterated that the government acted on legal advice regarding the severance settlement.
He added that the Prime Minister has apologised for the appointment, admitting it was a mistake. However, with thousands more documents still to be released and a Metropolitan Police investigation into Mandelson’s alleged leaking of sensitive information ongoing, the fallout from the “Mandelson Files” is far from over.
As the Liberal Democrat leader Ed Davey put it, this is only the first day of “Britain’s own Epstein files,” and the pressure for full transparency is unlikely to dissipate any time soon.
The Mandelson Files: A “weirdly rushed” appointment and a £75,000 payoff that rocks Westminster
