Labour peer Lord Mandelson is to step down from the House of Lords after it emerged he leaked confidential government emails to Jeffrey Epstein, prompting a police investigation and fresh pressure on the Prime Minister to strip him of his title.
The decision followed the release in the United States of more than three million documents detailing his links to the late financier and convicted sex offender. The disclosures revealed that while serving as business secretary in Gordon Brown’s Cabinet, Lord Mandelson shared market sensitive government information with Epstein that could have been used for financial gain.
The Metropolitan Police is now assessing allegations of misconduct in public office, an offence carrying a maximum sentence of life imprisonment. Mr Brown has written to the Met commissioner, Sir Mark Rowley, with what was described as “information relevant to his investigation”.
After previously backing him, Keir Starmer has faced mounting calls from dozens of Labour MPs to strip Lord Mandelson of his peerage and now faces renewed pressure to legislate to remove the title entirely.
A Downing Street spokesman said:
“It is right that Peter Mandelson will no longer be a member of the House of Lords. As the Prime Minister said this morning, Peter Mandelson let his country down.”
Cabinet Office referral and political fallout
The Cabinet Office has passed a dossier to police after concluding that official handling safeguards had been “compromised”. Officials said an initial review of the US files suggested they contained market sensitive information relating to the 2008 financial crash and subsequent efforts to stabilise the economy.
“Only people operating in an official capacity had access to this information and there were strict handling conditions to ensure it was not available to anyone who could potentially benefit from it financially,” the spokesman added.
“It appears these safeguards were compromised. In light of this information the Cabinet Office has referred this material to the police.”
David Lammy and Pat McFadden, who were ministers in Lord Mandelson’s department while he was business secretary, may face questions as part of a separate Cabinet Office inquiry. Morgan McSweeney, the Prime Minister’s chief of staff, is also expected to be examined as part of the process.
Lord Mandelson resigned under the 2014 House of Lords Reform Act, giving up his seat but not his title, which can only be removed through legislation.
After initially defending him, Starmer recently said Lord Mandelson should lose his title for bringing the House of Lords “into disrepute”. Downing Street has since indicated that broader reform of the upper chamber could make it easier for peers to be stripped of honours.
The Titles Deprivation Act 1917, which could be used in such a case, was last invoked more than a century ago against peers accused of aiding Britain’s enemies during the First World War.
Keir Starmer and McSweeney continue to face criticism over Lord Mandelson’s appointment last year as ambassador to the United States. It is understood that MI5 advised against the posting, but that the Prime Minister overruled the recommendation.
Kemi Badenoch, the Conservative leader, said:
“The scandal, sleaze, and speed of his downfall only increases the scrutiny on Starmer and McSweeney’s decision to send him to Washington.”
Richard Burgon, the Labour MP for Leeds East, said:
“[Lord Mandelson] needs to face the toughest consequences possible. But what we already knew about his behaviour was appalling enough.
“So the question remains, why was he appointed US Ambassador? Who lobbied for it? And why?”
Starmer told ministers on Tuesday morning that the transmission of highly sensitive government information to Epstein was “disgraceful” and that the peer had “let his country down”. He added that he was “not reassured that the totality of information had yet emerged”.
‘No record of payments’
Documents published over the weekend suggest Epstein transferred $75,000 (£54,750) to Lord Mandelson and £10,000 to his husband, although the peer says he has no record of receiving the money.
In return, Epstein was allegedly given details about plans for a multibillion pound European Union bailout, the possible resignation of Mr Brown, the sale of government land and property and proposed changes to banker bonus rules.
Mr Brown said he had contacted the Met commissioner over what he called “an inexcusable and unpatriotic act at a time when the whole Government and country were attempting to address the global financial crisis that was damaging so many livelihoods”.
Lord Mandelson has denied that any payments influenced his actions in government.
In an interview conducted before the latest allegations emerged, he acknowledged a “lapse in judgment” over Epstein paying for an osteopathy course for his husband in 2009.
“In retrospect, it was clearly a lapse in our collective judgment for Reinaldo to accept this offer. At the time it was not a consequential decision,” he said, rejecting claims that the payment amounted to bribery.
Senior Labour anger
Senior Labour figures expressed shock at the revelations. Wes Streeting, the Health Secretary, described Lord Mandelson’s conduct as “a betrayal on so many levels”, while Baroness Harman said she was “shocked at the degree of his wrongdoing”.
Lammy and McFadden may also be examined by investigators.
Karin Smyth, a health minister, told LBC’s Nick Ferrari that the Cabinet Secretary had been asked to examine the emails.
“The Prime Minister has asked the Cabinet Secretary to look into those particular emails that we learnt about yesterday,” she said. “So I think we just have to let the Cabinet Secretary do that work. And, you know, this is all new.”
She added:
“Every half hour is a new shocking revelation about that period of time. I think we’re all shocked about the revelations in those emails, and it is right that the Prime Minister took action to ensure the Cabinet Secretary does investigate that at the time.”
Four decade career ends
The resignation brings to a close a political career spanning more than 40 years.
Lord Mandelson first came to prominence in the 1980s as Neil Kinnock’s communications chief before entering Parliament in 1992. Under Tony Blair he resigned twice from Cabinet posts following political controversies but returned to government in 2008 as business secretary under Mr Brown, the period during which the emails to Epstein were sent.
Starmer appointed him US ambassador last year but was forced to removed him from the post when the extent of his relationship with Epstein became clear.
On Sunday night, Lord Mandelson resigned from the Labour Party, saying he wished to avoid causing “further embarrassment”.
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