Lord Mandelson Steps Down from House of Lords Following Epstein Files Revelations
Lord Peter Mandelson has announced his retirement from the House of Lords, effective immediately, following explosive allegations that he passed market-sensitive government information to convicted paedophile financier Jeffrey Epstein. The dramatic departure comes as Prime Minister Sir Keir Starmer threatened to introduce emergency legislation to strip the former business secretary of his peerage.
Cabinet Office Refers Matter to Police After Document Review
The Cabinet Office has referred material to the police after an initial review of documents released as part of the so-called Epstein files. Officials determined the papers contained "likely market-sensitive information" relating to the 2008 financial crash and subsequent government efforts to stabilise the economy, with evidence suggesting official handling safeguards had been "compromised".
Prime Minister Sir Keir Starmer opened Tuesday's Cabinet meeting by expressing his profound dismay at the revelations. "He said the alleged passing-on of emails of highly sensitive government business was disgraceful," stated the Prime Minister's official spokesman, adding that Sir Keir was "not reassured that the totality of information had yet emerged."
Unprecedented Legislative Threat to Remove Peerage
Sir Keir had ordered officials to draft legislation that would remove Lord Mandelson's peerage - a move not seen since titles were stripped from nobles who sided with Germany during the First World War. The Prime Minister told his Cabinet that Lord Mandelson should no longer be a member of the House of Lords or use his title, declaring that the former minister had "let his country down."
The files released by the US Department of Justice apparently show Lord Mandelson passing confidential material to Epstein while serving as business secretary in Gordon Brown's Labour administration. The documents suggest:
- Lord Mandelson appeared to tell Epstein he would lobby ministers over a tax on bankers' bonuses in 2009
- He seemingly confirmed an imminent bailout package for the euro the day before its official announcement in 2010
- In June 2009, he appears to have passed on what he called an "interesting note that's gone to the PM" - an assessment by Gordon Brown's adviser Nick Butler of potential policy measures including an "asset sales plan"
- The financier was also sent an analysis of business lending in August 2009 drawn up by minister Baroness Vadera
Financial Transactions and "Lapse in Judgment" Admission
The Epstein files contain references to financial transactions between Lord Mandelson and the disgraced financier, including:
- A £10,000 transfer from Epstein to fund an osteopathy course for Lord Mandelson's husband, Reinaldo Avila da Silva, in 2009
- Bank details indicating payments totalling approximately £55,000 (75,000 US dollars) from Epstein between 2003 and 2004
In a Times interview conducted before the latest allegations emerged, Lord Mandelson admitted to a "lapse in judgment" regarding Epstein's funding of the osteopathy course, though he rejected suggestions this left him open to bribery claims. The peer insisted he had "absolutely no recollection" of receiving the substantial payments indicated in the US Department of Justice files.
Political Fallout and Breach of Trust Allegations
The scandal has provoked strong reactions across the political spectrum. Baroness MacLeod, special adviser to then-chancellor Alistair Darling during the financial crisis response, described the revelations as a "terrible breach of trust" and said her former boss would have been "shocked at the scale of this treachery."
At Cabinet, Sir Keir expressed concern about the damage to public trust, stating: "For the public to see politicians saying they can't recall receiving significant sums of money is just gobsmacking, causing them to lose faith in all politicians and weaken trust still further."
Lord Speaker Lord Forsyth of Drumlean formally announced Lord Mandelson's departure to the upper chamber, stating he had received notification of the peer's intention to retire effective from February 4th, citing "the public interest and for the convenience of the House." Lord Mandelson had been on a leave of absence from Parliament prior to this announcement.
