Mandelson’s Epstein Ties Ignite Crisis in British Politics London

By Suraj Karowa / ANW February 4 2026

Peter Mandelson arrives at the Cabinet Office in central London on June 18, 2025.

— A once-powerful Labour figure, Peter Mandelson, has plunged Prime Minister Keir Starmer’s government into turmoil with revelations of his close friendship with Jeffrey Epstein, the late financier convicted of sex crimes.

Newly released U.S. Justice Department files allege Mandelson leaked sensitive market information to Epstein during the 2008 financial crisis, prompting a criminal probe by London’s Metropolitan Police.

Mandelson, 72, nicknamed the “Prince of Darkness” for his shrewd political maneuvers, shaped “New Labour” in the 1990s.

As director of communications, he modernized the party, ditching union dominance for a market-friendly image that swept Tony Blair to a 1997 landslide.

Peter Mandelson speaks at the British ambassador’s residence in Washington, DC, on February 26, 2025.

Mandelson joined the cabinet as minister without portfolio but resigned in 1998 after failing to disclose a loan from a millionaire donor for his home purchase.

He bounced back as trade secretary in 1999, only to quit again in 2001 amid accusations of pressuring officials for a passport for Indian billionaire Srichand Hinduja.

From 2004 to 2008, he served as EU trade commissioner in Brussels.

Returning under Gordon Brown, he became business secretary amid the financial meltdown but left politics after Labour’s 2010 defeat, entering the private sector.

This photo provided by the New York State Sex Offender Registry shows Jeffrey Epstein, March 28, 2017.

Last year, Starmer appointed him Britain’s ambassador to the U.S., replacing career diplomat Karen Pierce.

The move sought a bold face for Washington under President Donald Trump.

But the posting lasted just seven months. In September 2025, Epstein files surfaced, including a 2003 birthday book note from Mandelson calling Epstein “my best pal” and a photo of them in bathrobes.

Emails showed Mandelson supporting Epstein post-2008 conviction for soliciting a minor, advising him to channel Sun Tzu’s “Art of War.”

Starmer sacked him, with the Foreign Office citing the relationship’s undisclosed depth.

Trump, during his UK state visit that Mandelson helped plan, called the resignation “too bad.”

The British Embassy and the British ambassador’s residence compound on September 11, 2025, in Washington, DC.

Facing backlash, Mandelson quit the House of Lords this week and resigned from Labour to spare the party embarrassment.

The latest U.S. files, released recently, escalate the saga.

A 2009 email exchange reveals Mandelson, as business secretary, sharing cabinet plans on crisis responses.

He tipped Epstein about a planned tax on bankers’ bonuses and suggested JP Morgan’s CEO “mildly threaten” Finance Minister Alistair Darling—who later confirmed such a call in his memoirs.

Mandelson also allegedly warned of a €500 billion EU euro bailout. Bank records show Epstein wired $75,000 to Mandelson-linked accounts in 2003-2004; separate emails hint at £10,000 to Mandelson’s husband, Reinaldo Avila da Silva, for an osteopathy course.

A Mandelson spokesperson denied recollection or authenticity of the payments.

The Metropolitan Police launched a misconduct in public office investigation Tuesday.

Brown, prime minister during the alleged leaks, contacted police, branding Mandelson’s actions “inexcusable and unpatriotic” amid efforts to shield the economy and livelihoods.Political Fallout MountsStarmer’s initial hire now haunts his fragile government.

Opposition leader Kemi Badenoch (Conservatives) slammed the “scandal, sleaze, and speed” of Mandelson’s fall, questioning Starmer’s judgment given his scandal-plagued past.

Reform UK’s Nigel Farage—himself named 32 times in Epstein files—called it a “grave error.”

Starmer condemned the leaks as “disgraceful,” saying Mandelson “let his country down.”

Labour, already battered, faces intensified scrutiny. Mandelson’s 1998 quip—“intensely relaxed about people getting filthy rich” so long as taxes are paid—now stings amid his Epstein proximity.

Mandelson’s career of comebacks may end here. Previous resignations led to returns, but this blends financial impropriety, national security concerns, and Epstein’s toxic legacy.

The probe could yield charges, further eroding Starmer’s authority.The scandal ripples wider.

Epstein files name royals, politicians, and executives, rocking Britain from palace to Parliament.

As Trump reshapes alliances, Starmer’s misstep underscores vulnerabilities in transatlantic ties.

Brown’s intervention signals deep rifts; his police referral underscores betrayal during crisis.

With Mandelson out of the Lords, focus shifts to the investigation’s pace and Starmer’s damage control. For a government preaching integrity, the “Prince of Darkness” casts a long shadow.