Mandelson Files Expose Epstein Warnings and £550k Payout Demand
The first release of the Mandelson files has unveiled critical advice given to the Prime Minister concerning the disgraced peer's relationship with convicted sex offender Jeffrey Epstein, alongside stark warnings about his appointment. These documents further reveal how Mandelson aggressively pursued nearly £550,000 as a severance payment following his dismissal as ambassador and his efforts to arrange a meeting between Epstein and then-Prime Minister Sir Tony Blair.
'Reputational Risk' Highlighted in Cabinet Office Warnings
According to the files, Sir Keir Starmer was explicitly cautioned that Peter Mandelson maintained a 'particularly close' relationship with Epstein, posing a significant 'reputational risk' if he were appointed US ambassador. The Prime Minister has asserted that Mandelson 'lied repeatedly' to Number 10 about this association both before and during his tenure. However, the dossier indicates Sir Keir received clear warnings that Mandelson's ties to Epstein represented a 'general reputational risk,' with the potential for the PM to 'personally' bear the blame.
A Cabinet Office document from December 2024, prior to Mandelson's hiring, detailed his connections with Epstein, noting the relationship began when Mandelson served as business minister and continued 'after the end of the Labour government.' It also records that 'Mandelson reportedly stayed in Epstein's house while he was in jail in June 2009.' The phrase 'reputational risk' appears four times in the files, referencing not only the Epstein relationship but also Mandelson's past government resignations and lobbying activities by his firm, Global Counsel.
Official advice included in Sir Keir's red box featured a note from two senior officials warning: 'If anything goes wrong, you could be more exposed as the individual is more connected to you personally.'
Number 10's Internal Satisfaction and Influential Friendships
The files suggest Sir Keir's former communications chief, Lord Doyle, was 'satisfied' with Mandelson's responses regarding Epstein, playing a decisive role in the decision to trust the peer. Described as a 'personal friend' of Mandelson, Lord Doyle's influence appears pivotal. Advice from December 2024 shows he was 'satisfied with his responses to questions' about Epstein, leading to Mandelson's appointment as US ambassador on December 20, 2024.
Lord Doyle, involved in the hiring process, was later made a peer by Sir Keir after resigning as communications chief in 2025. He was suspended from Labour last month after campaigning for a friend charged with possessing and distributing indecent images of children, for which he has apologised 'unreservedly.'
Senior Figures Blame Each Other in Hiring Fallout
Following Mandelson's sacking, senior Number 10 officials engaged in mutual blame over the hiring decision. Files from September reveal national security adviser Jonathan Powell implying that Sir Keir's former chief of staff, Morgan McSweeney, was at fault. In a legal grilling, Powell stated the appointment was 'weirdly rushed' and that he had raised 'concerns' about Mandelson's 'reputation' with McSweeney, only to be told they had been 'addressed.'
Lord Doyle corroborated this version, telling general counsel Mike Ostheimer that Powell had been 'particularly cautious' and that he had engaged in 'back and forth' with McSweeney over Mandelson's role in private meetings. While all three men faced criticism, only Powell remains in his position.
Delayed Departure Blamed on Canine Complications
Even after his sacking on September 11, Mandelson managed to delay his departure by citing his dog. An official noted he agreed to stay in the US for nearly two weeks, with Mandelson attributing the hold-up to his dog, Jock, requiring 'veterinary certification' before travel. In the same memo, he expressed his 'chief concern' was avoiding negative press and returning with 'maximum dignity.' The files also indicate Mandelson threatened legal action if his severance payment was unsatisfactory.
Golden Goodbye: Negotiating a Lucrative Severance
Mandelson received a payoff almost double his legal entitlement after initially demanding a staggering £547,000. Documents show he 'opened negotiations' by proposing the taxpayer buy out his four-year contract. His lawyers argued that the standard three months' notice was 'insufficient' due to the Government having 'permanently damaged' his employability.
The Government approved a 'special severance package' of £75,000, endorsed by Number 10 and Foreign Secretary Yvette Cooper. This included £40,330 in lieu of notice and a 'special termination payment' of £34,670. Officials congratulated themselves on securing a deal with 'minimal fuss' at a 'low' cost, with Foreign Office permanent secretary Olly Robbins deeming it 'good value for money.'
Blair Meeting Arranged by Mandelson
The files disclose Mandelson's push for Sir Tony Blair to meet Epstein, whom he described as 'young and vibrant.' In an email to Powell, then Blair's chief of staff, Mandelson wrote: 'I think TB would be interested in meeting Jeffrey, who is also a friend of mine.' He added that Epstein was 'safe (whatever that means)' and noted Bill Clinton's frequent travels with him.
A meeting between Blair and Epstein occurred in May 2002, with Downing Street foreign policy aide Matthew Rycroft informing Blair that Epstein was 'a financial adviser to the super-rich and a property developer' and 'a friend of Bill Clinton and Peter Mandelson.' The note also mentioned Epstein was 'very rich' and 'close to the Duke of York.' A spokesman for Blair stated the meeting took place 'long before his crimes were known of and his subsequent conviction,' adding no further engagement occurred after 2002.
