Mandelson's Persistent Push for a Role in Labour's Election Campaign
In June 2024, as Keir Starmer's Labour Party prepared for a general election, insiders say the project lacked a clear strategy for victory. Amid this uncertainty, Peter Mandelson, the former New Labour architect, was a constant presence, dipping in and out of the leader of the opposition's office in Westminster. According to a former Labour official, Mandelson would pick individuals off for private chats, offering advice on big issues, though he had no formal desk or title.
Internal Resistance and Welcoming Voices
While some within Labour found Mandelson's involvement reassuring, given his history with election-winning teams, others actively sought to distance themselves. Sue Gray, then Starmer's chief of staff, was notably wary. A source stated, "Sue didn't want him near anything. She kept trying to push him away. I think by that point, he was definitely, like, pestering for a role and wanting a role. She could probably see that all of this would happen." This tension highlighted the divided opinions on Mandelson's return to the fold.
Epstein Scandal and Diplomatic Fallout
The controversy deepened this week when Prime Minister Starmer apologised in the Commons for "having believed Mandelson's lies" regarding his relationship with Jeffrey Epstein, the disgraced financier and sex offender. Emails from a cache of 3 million documents released by the US Department of Justice suggested Mandelson passed market-sensitive information to Epstein during the financial crisis. Starmer accused Mandelson of betraying the country, raising questions about his appointment as US ambassador in 2025, a role for which he reportedly downplayed his Epstein ties during vetting.
Why Bring Mandelson Back?
Labour insiders debate why Starmer reintegrated Mandelson, given his baggage, including two resignations from cabinet over proximity to the wealthy and powerful, and his known association with Epstein post-conviction. Mandelson had been absent from Labour under Jeremy Corbyn and Ed Miliband, with Miliband once emphasizing "dignity in retirement." Many point to Mandelson's relationship with Morgan McSweeney, Starmer's chief of staff, introduced by peer Roger Liddle. Despite their clashing politics—McSweeney's focus on Brexit-era issues versus Mandelson's pro-European globalism—their connection facilitated Mandelson's return.
Desperation and Political Frisson
According to sources, Mandelson's comeback was driven by his adeptness at inveigling his way back and a desperation within the Starmer project. Simon Fletcher, a former senior adviser, noted that Mandelson provided a "frisson from the association with Blair-era New Labour," offering a clear political analysis that the leadership lacked. In 2023, Mandelson even wrote a lengthy note to Starmer on the need for vision, leading to a meeting at his home. This move was seen as a conscious choice to embrace controversial figures to signal a break from the past.
Fundraising and Internal Anger
Mandelson's return also had financial motivations. At a time when Labour needed funds, he appeared to have a hotline to industry, attending business receptions and influencing donations through groups like Labour Together. However, the Epstein revelations sparked genuine anger in Westminster, with figures like Wes Streeting publicly distancing themselves and John McDonnell calling for Starmer's resignation. Many MPs view the saga as proof of the leadership's "uselessness," with one noting that Starmer lacked answers and clarity, making him susceptible to Mandelson's influence.
Ultimately, Mandelson's reintegration into Labour highlights a party grappling with strategic uncertainty and willing to embrace controversial figures in pursuit of electoral success, despite the risks and internal divisions it provoked.
