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By Open Chronicle Staff with Agencies | March 12, 2026
LONDON — A high-stakes political storm has engulfed 10 Downing Street following the release of a 147-page dossier detailing the controversial appointment of Lord Peter Mandelson as the UK’s Ambassador to the United States. The documents, published Wednesday under intense parliamentary pressure, reveal that Prime Minister Keir Starmer was explicitly warned of a “general reputational risk” due to Mandelson’s deep and persistent ties to convicted sex offender Jeffrey Epstein—but chose to proceed regardless.
The disclosure has led to the resignation of Starmer’s Chief of Staff, Morgan McSweeney, and sparked a criminal investigation by the Metropolitan Police into allegations of misconduct in public office.
British Prime Minister Keir Starmer was warned that Peter Mandelson's relationship with Jeffrey Epstein posed a "general reputational risk" ahead of his appointment as Britain's ambassador to the United States, according to a trove of files released Wednesday by the British… pic.twitter.com/uh6moGg1yu
— CNN International (@cnni) March 11, 2026
THE “DUE DILIGENCE” RED FLAGS
The files include a report prepared in late 2024 that summarized Mandelson’s relationship with Epstein spanning nearly two decades. Crucially, the documents confirm that Starmer was informed that Mandelson’s contact with Epstein did not end after the financier’s 2008 conviction for procuring an underage girl.
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The 2009 Stay: The report noted that Mandelson reportedly stayed at Epstein’s home in June 2009 while Epstein was serving jail time.
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JPMorgan Links: Civil servants cited a 2019 JPMorgan report describing a “particularly close relationship” between Mandelson, Epstein, and Prince Andrew.
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Official Overrides: Despite these “red flags,” close aides to the Prime Minister—including former communications chief Matthew Doyle—expressed they were “satisfied” with Mandelson’s private explanations.
INTERNAL ALARMS: “WEIRDLY RUSHED”
Perhaps the most damaging revelation involves National Security Adviser Jonathan Powell. Notes from a call with the Prime Minister’s general counsel, Mike Ostheimer, reveal that Powell found the selection process “unusual” and “weirdly rushed.”
Powell reportedly raised his concerns about Mandelson’s “individual and reputation” to Morgan McSweeney, who allegedly dismissed them, stating the issues had been “addressed.” It is now suggested that the appointment was expedited to ensure Mandelson was in place for the start of Donald Trump’s second term.
THE SEVERANCE BATTLE
Following his dismissal in September 2025—prompted by further revelations about the depth of his ties to Epstein, Mandelson reportedly “played hardball” regarding his exit package.
| Detail | Amount |
| Initial Request | £547,201 ($700,000+) — Mandelson sought the full payout of his 4-year contract. |
| Final Settlement | £75,000 ($96,000) — Agreed upon to avoid a costly and public employment tribunal. |
| Government Stance | Chief Secretary Darren Jones called the initial request “inappropriate and unacceptable.” |
CRIMINAL INVESTIGATION & BAIL
The scandal has moved beyond the political sphere. Mandelson, 72, was arrested on February 23, 2026, on suspicion of misconduct in public office. The investigation centers on allegations that he passed market-sensitive government information to Epstein during his time as Business Secretary (2009–2011).
While Mandelson’s bail conditions were lifted last Friday after the Metropolitan Police determined he was not a flight risk (following a tip-off that he intended to flee to the British Virgin Islands), he remains under active investigation.
“Peter Mandelson should never have been afforded the privilege of representing this country. The Prime Minister deeply regrets taking him at his word. It was a mistake.”
— Darren Jones, Chief Secretary to the Treasury.