Mandelson Files Drop: No Smoking Gun but Eyewatering Sums and Damning Revelations
Sir Keir Starmer pledged to clean up politics, yet he now finds himself embroiled in one of the most significant political scandals of this century. The initial release of the Mandelson files, while lacking a definitive smoking gun, has unveiled startling financial details and critical warnings that cast a shadow over the Prime Minister's judgment.
Eyewatering Payoff and Unusual Processes
The 147-page document, detailing the vetting, appointment, and severance of former US ambassador Peter Mandelson, highlights a £75,000 payoff he received after being dismissed—a fraction of the nearly £550,000 he initially requested. Additionally, it reveals that Jonathan Powell, the prime minister's national security adviser, described the appointment process as "unusual", raising immediate concerns about procedural integrity.
Red Flags Over Epstein Ties
Previously, Sir Keir Starmer admitted in the House of Commons to being aware of an "ongoing relationship" between Lord Mandelson and convicted paedophile financier Jeffrey Epstein. However, the files provide damning evidence in black and white: a two-page due diligence report from the cabinet office flagged that their relationship was "particularly close" and continued well after Epstein's 2008 conviction for procuring an underage girl for sex. It noted that Mandelson reportedly stayed at Epstein's house while he was jailed in June 2009 and warned of "general reputational risk".
The report explicitly cautioned the Prime Minister that appointing Mandelson, a political figure rather than a diplomat, increased personal exposure: "If anything goes wrong, you could be more exposed as the individual is more connected to you personally."
Internal Concerns and Rushed Appointment
Further revelations from the files indicate that Jonathan Powell found Mandelson's appointment in December 2024 to be "weirdly rushed" and expressed particular caution. Minutes from a September 2025 call show Powell raising concerns about Mandelson's reputation to Morgan McSweeney, the PM's then chief of staff, who responded that the issues had been addressed. Sir Philip Barton, the Foreign Office's top civil servant at the time, also had reservations, according to Powell.
The brevity of the due diligence report—only two pages—and its failure to robustly investigate Mandelson's ties to Epstein raise obvious questions. Subsequent releases of Epstein files by the US Department of Justice revealed the depth of their friendship, leading to Mandelson's arrest last month on suspicion of misconduct in public office for allegedly sharing confidential information with Epstein during his tenure in Gordon Brown's cabinet. Lord Mandelson denies these charges.
Political Fallout and Accusations
Prime Minister Starmer claims he was repeatedly lied to by Lord Mandelson, with No 10 asserting that follow-up questions were asked based on the due diligence report. However, related documents have been withheld by the Metropolitan Police to avoid prejudicing the investigation. This has fueled criticism, such as from Alex Burghardt, shadow chancellor to the Duchy of Lancaster, who excoriated Starmer in the House of Commons, stating, "He wasn't lied to by this due diligence document... he was lied to by an inveterate liar who had been fired twice before."
Future Releases and Broader Implications
Only a small portion of the expected tens of thousands of documents was published, with the government aiming to release more soon. These could include messages between Lord Mandelson and senior government figures from six months before his appointment through his ambassadorship, pending national security clearance. This potential release might exacerbate tensions between Washington and London over the war in Iran if sensitive diplomatic communications are disclosed.
Additionally, conflicts of interest could arise if it emerges that government correspondence was shared with Mandelson prior to his appointment, given his commercial interests at Global Counsel, a lobbying firm he co-founded. Key figures who supported Mandelson's appointment, such as Morgan McSweeney and former communications director Matthew Doyle, have since left government, leaving Starmer to grapple with the ongoing consequences of a decision he clearly regrets.
As one senior MP noted, this scandal contributes to a "general despondency" around the administration. Sir Keir Starmer, who vowed to reform politics, now faces immense pressure to navigate this crisis, with no easy resolution in sight.
