Mandelson’s Appointment as UK Ambassador to US Sparks Political Crisis over Epstein Ties

British Prime Minister Keir Starmer is embroiled in a scandal over the politically charged appointment of Peter Mandelson as ambassador to the United States, after the Epstein files revealed Mandelson’s close and long-standing friendship with convicted sex offender Jeffrey Epstein.

Mandelson was forced to resign in February and later arrested on suspicion of abusing public office, linked to allegations he passed sensitive market information to Epstein. Senior civil servant Olly Robbins was dismissed from the Foreign Office for allegedly failing to inform the Prime Minister that Mandelson had failed a security clearance check. Morgan McSweeney, Starmer’s former chief of staff, also resigned in February over the decision to appoint Mandelson.

McSweeney and Robbins testified before the House of Commons Foreign Affairs Committee, where they were questioned about the process that allowed Mandelson to assume a public role without adequate vetting. McSweeney admitted to making a “serious mistake” in nominating Mandelson. He also acknowledged that the Trump administration was comfortable with keeping Karen Pierce, who served as ambassador from 2020 to 2025, in the post.

During the interview, McSweeney described Mandelson as a “confidant” on political strategy. The Sunday Times reported that Mandelson was present at Downing Street just days before being fired from the ambassador role to advise on Starmer’s first major cabinet reshuffle. McSweeney told the committee that although Mandelson suggested personnel for the reshuffle, those recommendations were not implemented.

An investigation by journalist Paul Holden in his book The Fraud reveals that McSweeney and his Labour Together consulting group were central to a political campaign to oust former Labour leader Jeremy Corbyn and bring Starmer to power. The project was funded by undeclared contributions totaling approximately £730,000 between 2017 and 2020. The next head of Labour Together, Josh Simons, was selected as a Labour candidate and later became a minister, but resigned amid allegations he paid a PR company to investigate journalists.

A civil service source confirmed that Mandelson’s appointment was McSweeney’s idea and that Starmer “would not really be involved,” but could not admit this “because it shows he is powerless.”

Mandelson called his friendship with Epstein a “terrible mistake,” apologized to “the women and children who have suffered,” and stated that he was “not exposed to the criminal aspects” of Epstein’s life.

Mandelson co-founded the lobbying firm Global Counsel in 2010, which counted the U.S. surveillance technology company Palantir among its clients. Mandelson accompanied Starmer on a visit to Palantir’s Washington headquarters in February 2025, just before the company was awarded a £240 million contract with the Ministry of Defence, on top of an existing £480 million contract to manage sensitive NHS patient data.

Labour MP Apsana Begum called for “full transparency” from the government. She said she has “direct experience” of being “factionally targeted” by Labour leadership. Former Labour leader Jeremy Corbyn also called for an independent public inquiry, stating that “parliament cannot investigate its own corruption.”

Jamie Driscoll, former North of Tyne mayor, said that the right-wing faction had “slandered and lied to undermine socialists and social democrats.” Holden, author of The Fraud, argued that the investigation into Mandelson and McSweeney has been “quite shameful” and exposed a “complete institutional failure.”