Senior Labour Figures Trade Blame Over Mandelson's Controversial Washington Appointment
Senior figures within Keir Starmer's inner circle are pointing fingers at each other regarding the decision to appoint Peter Mandelson as ambassador to Washington, despite his well-documented connections to convicted billionaire child abuser Jeffrey Epstein. Newly released documents have exposed significant internal disagreements and concerns about the rushed nature of the appointment process.
Internal Documents Reveal Blame Game
National security adviser Jonathan Powell has suggested in legal documents that Morgan McSweeney, Sir Keir's former chief of staff, bears responsibility for the controversial appointment. During a legal grilling included in the Mandelson files, Powell stated he believed the appointment process was "weirdly rushed" and that he had raised specific concerns about Lord Mandelson's reputation with McSweeney at the time.
Powell claimed he was told these concerns had been "addressed," though subsequent events have proven otherwise. His version of events appears to be corroborated by former communications chief Matthew Doyle, who stated in his own questioning that Powell had been "particularly cautious" about the appointment and that he had engaged in "back and forth" discussions with McSweeney regarding Mandelson's suitability for the role.
Fallout and Departures
All three men have faced criticism for their involvement in Mandelson's appointment, with McSweeney resigning from the government last month following revelations about Mandelson's deep friendship with Epstein. Doyle had already left his position prior to these developments, while Powell remains in his role as national security adviser, continuing to play a significant role in government affairs including the Chagos Islands agreement.
When McSweeney resigned, his allies attempted to shift blame onto Powell, with one source telling the Telegraph that McSweeney "didn't make the appointment" and shouldn't be the one taking responsibility. The source challenged those who pushed for Mandelson's hiring to take accountability now that McSweeney could no longer shield them from scrutiny.
Damning Revelations and Financial Settlement
Sir Keir Starmer has been accused of rewarding Mandelson for "betraying" Britain, with explosive documents revealing the peer received a £75,000 payoff when he was dismissed as US ambassador due to his friendship with convicted paedophile Jeffrey Epstein. Mandelson had initially demanded £547,000 in compensation for losing his £161,000 annual position and had threatened legal action against the government.
Despite the Prime Minister stating in Parliament that Mandelson "lied" during his vetting process, the government privately assessed there was no evidence of "misconduct in role that would give rise to normal disciplinary proceedings." Foreign Office permanent secretary Olly Robbins described the £75,000 settlement as representing "good value for money," while other officials congratulated themselves on keeping the amount "so low."
Remarkably, Chief Secretary to the Treasury James Murray expressed satisfaction with the arrangement, stating he was "happy" to authorize the payment. The settlement included £34,000 in severance pay along with cash in lieu of notice.
Due Diligence Failures and Epstein Connections
The released documents confirm that Sir Keir Starmer was aware of Mandelson's continued friendship with Jeffrey Epstein even after the financier's conviction when he appointed him in December 2024. A note from a senior aide to the Prime Minister indicated that both Starmer and chief of staff Morgan McSweeney had expressed a "preference for a political candidate" for the Washington envoy position, with Mandelson identified as the "lead candidate."
A three-page due diligence report provided to Sir Keir on December 11, 2024, explicitly highlighted the connections between Mandelson and Epstein. The report referenced Epstein's "particularly close relationship with Prince Andrew the Duke of York and Lord Peter Mandelson" and noted that their contact continued throughout the 2000s.
The summary stated: "After Epstein was first convicted of procuring an underage girl in 2008, their relationship continued across 2009-2011, beginning when Lord Mandelson was Business Minister and continuing after the end of the Labour government. Mandelson reportedly stayed in Epstein's house while he was in jail in June 2009."
The report also mentioned that in 2014, Mandelson "agreed to be a 'founding citizen' of an ocean conservation group founded by Ghislaine Maxwell, and funded by Epstein." Despite these clear warnings, the appointment proceeded, with Downing Street sources now claiming that ongoing police investigations prevent them from releasing details about what specific questions Mandelson was asked during his vetting process.
