UK Government Faces Turmoil Over Mandelson–Epstein Revelations

The British government is facing its most serious political crisis since Labour’s 2024 election victory following revelations about former US ambassador Peter Mandelson’s relationship with the late financier and convicted sex offender Jeffrey Epstein.

The controversy centres on newly released US Department of Justice files, which include documents and emails detailing Mandelson’s continued contact with Epstein after Epstein’s 2008 conviction for sex trafficking a minor. The files have prompted a criminal investigation by London police into allegations that Mandelson shared sensitive government information with Epstein while serving as business secretary in 2009.

According to the allegations, Mandelson disclosed market-sensitive information during the global financial crisis, including advance notice of government action to support the euro. Separate documents suggest Epstein transferred at least $75,000 to Mandelson and his husband. Mandelson has said he does not recall the payments and denies wrongdoing.

Mandelson, who served as British ambassador to the United States following Labour’s landslide election win, was dismissed last year after earlier disclosures showed he had maintained a personal relationship with Epstein. He has since resigned from the Labour Party.

Prime Minister Keir Starmer has acknowledged that he knew of Mandelson’s past association with Epstein prior to appointing him, but said Mandelson repeatedly misled his team about the nature and extent of the relationship. Addressing parliament, Starmer said Mandelson had “betrayed our country” and apologised to Epstein’s victims for believing his assurances.

The episode has reopened scrutiny of Mandelson’s long and controversial political career. A central figure in the New Labour era under Tony Blair, Mandelson previously resigned twice from cabinet roles in the late 1990s and early 2000s over separate ethics scandals before returning to senior positions.

Political pressure is now extending beyond Mandelson himself. Several Labour MPs have questioned Starmer’s judgment and called for the resignation of his chief of staff, Morgan McSweeney, who was closely involved in the decision to appoint Mandelson despite internal concerns.

Simon Opher, Labour MP for Stroud, said Starmer had been “badly advised” and argued that senior figures in No 10 should be replaced. Former Labour deputy leader Harriet Harman said the prime minister appeared “weak, naive and gullible” in claiming he had been misled, arguing Mandelson should never have been considered for the role.

Downing Street has said McSweeney retains Starmer’s confidence.

Ministers are now preparing to release internal communications related to Mandelson’s appointment, following Starmer’s agreement to publish the files. The documents are expected within days and may prove pivotal in determining whether pressure on the prime minister intensifies.

Some Labour MPs have said they will reserve judgment on Starmer’s leadership until the documents are released, while others warn that the episode has damaged public trust in the government. Supporters of the prime minister argue that transparency and accountability will help contain the fallout.

The crisis unfolds against a volatile political backdrop, with Nigel Farage’s Reform party polling strongly and positioning itself as an anti-establishment alternative.

Unless linked, headlines are front pages on 06/02/2026.