The first set of government files related to the appointment of Peter Mandelson as the UK's ambassador to the United States has revealed that Prime Minister Keir Starmer was warned about a potential "reputational risk" linked to the envoy’s association with the late convicted sex offender Jeffrey Epstein.
A due diligence report prepared in December 2024, ahead of Mandelson's appointment to Washington, noted concerns about a "general reputational risk" related to his relationship with Epstein.
Documents show that Starmer was informed that Mandelson maintained contact with Epstein after Epstein's 2008 conviction for procuring an underage girl.
"After Epstein was first convicted of procuring an underage girl in 2008, their relationship continued across 2009–2011, beginning when Mandelson was business minister and continuing after the end of the Labour government," the report said.
"Mandelson reportedly stayed in Epstein's house while he was in jail in June 2009," it added.
The due diligence document, provided to Starmer in November 2024, included references to a series of reports detailing Mandelson’s links with Epstein and flagged possible reputational implications.
Separate documents released by the government also detail discussions surrounding Mandelson’s departure from a previous role last September.
The files show Mandelson asked for more than $660,000 as a severance payment when he was dismissed.
The papers said Mandelson requested that the government "pay out the remainder of the four-year salary costs of the fixed-term appointment".
He ultimately received $100,000.
Notes of a call between Mike Ostheimer, the prime minister's general counsel, and Starmer's national security adviser Jonathan Powell were also included in the documents.
In the record of the conversation, Powell is described as saying he found the appointment process "unusual".
The notes state Powell "found the appointment process unusual of Mandelson weirdly rushed".
Mandelson, the former British cabinet secretary, has had his bail conditions lifted following his arrest on suspicion of misconduct in public office, though he remains under investigation by the Metropolitan Police.
