The inner workings of the government are often hard to understand but the release of the first batch of documents regarding Lord Peter Mandelson’s appointment as US Ambassador has shed light on a very contentious decision. These files, which are 150 pages long confirm what many critics suspected: Sir Keir Starmer was explicitly warned that Mandelson’s past association with the disgraced financier Jeffrey Epstein posed a “reputational risk” to the government.
Despite these warnings the appointment moved forward quickly. Senior officials described the pace as “weirdly rushed”. This led to a tenure that lasted less than a year and ended in a cloud of criminal investigation and public apology.
Vetting Warnings and Rushed Appointments
The core of the controversy lies in a report sent to the Prime Minister on December 11 2024. This report highlighted a 2019 JP Morgan report which described a relationship between Mandelson and Epstein. The files note that Mandelson’s relationship with Epstein continued after Epstein’s 2008 conviction.
Reports suggest Mandelson even stayed at Epstein’s home in June 2009 while Epstein was serving time in jail. While the Prime Minister has since claimed he was unaware of the extent of the friendship the documents show that his own National Security Adviser, Jonathan Powell found the appointment process
Powell raised concerns about Mandelson’s reputation to Morgan McSweeney, Starmers chief of staff. He was told that the issues had already been addressed.
Key Points from the Report:
- Contact: Mandelson and Epstein remained in contact between 2009 and 2011.
- Previous Resignations: The report flagged risks associated with Mandelson’s two resignations from government over financial matters.
- Civil Service Reservations: Sir Philip Barton, the civil servant at the Foreign Office had significant reservations about the move.
The Severance Pay Dispute
Following his sacking in September 2025 Mandelson entered into a negotiation over his departure. The released files expose a big difference between Mandelsons expectations and the Treasurys final offer.
Mandelson initially explored a severance package of over £500,000. He expressed a desire to leave with dignity. Argued that as a civil servant he should be treated with financial respect. The Treasury however took a line.
Darren Jones, the Chief Secretary to the Treasury labeled the request “inappropriate and unacceptable.” A settlement of £75,000 was eventually reached. The government claims this sum was agreed upon to avoid costs.
The Politics and National Security
The “Mandelson affair” has provided ammunition for the opposition. Tory leader Kemi Badenoch has used the release to accuse the Prime Minister of lacking honesty. There are also national security questions.
The documents suggest that Mandelson was offered briefings before his formal clearance was completed. This suggests a culture where political urgency may have bypassed security safeguards. Read More
The saga is far, from over. Thousands more pages are expected to follow. However the Metropolitan Police have requested that certain files remain confidential to avoid prejudicing an investigation.
As the government moves to tighten its vetting processes the Mandelson Files serve as a reminder of the cost of ignoring warnings. For Keir Starmer this is a lesson that may continue to haunt his administration.
