Peter Mandelson Under Criminal Inquiry: Epstein Files Shake UK Establishment

Peter Mandelson, a defining figure of New Labour and briefly Britain’s ambassador to the United States, is at the centre of a major political scandal after newly released US Department of Justice materials linked him to financier Jeffrey Epstein.

Peter Mandelson speaks at the British ambassador's residence in Washington, DC, on February 26, 2025. - Carl Court/Pool/Reuterrs

Background

Once dubbed the “Prince of Darkness” for his ruthless political skill, Mandelson helped reinvent the Labour Party in the 1980s and 1990s and served in several senior roles, including minister without portfolio, trade secretary, European Commissioner for Trade (2004–2008) and business secretary in Gordon Brown’s government. After a decade in the private sector, Prime Minister Keir Starmer appointed him ambassador to Washington in 2023 — a choice that proved controversial because of Mandelson’s previous associations with wealthy figures.

Mandelson's birthday note to Epstein was interspersed with images of them together. - House Committee on Oversight and Government Reform

New Allegations

The latest Justice Department disclosure contains emails, photographs and financial material that prosecutors released in relation to Epstein. According to those documents, Mandelson allegedly shared market-sensitive, post-2008-crisis policy information with Epstein and discussed specific UK and EU measures under cabinet consideration. The material has prompted a Metropolitan Police investigation into alleged misconduct in public office.

A newly released photo shows a man who appears to be Peter Mandelson in his underwear alongside a woman whose face has been redacted. - Department of Justice

Specific Claims in the Files

Key allegations in the released files include:

The British Embassy and the British ambassador's residence compound on September 11, 2025, in Washington, DC. - Andrew Harnik/Getty Images

• Emails from 2009 in which Mandelson, then business secretary, appears to pass to Epstein details of cabinet deliberations on crisis-era policy options.
• A December 2009 exchange discussing a proposed one-off tax on bankers’ bonuses and an alleged suggestion that the head of JPMorgan Chase should call then-chancellor Alistair Darling to "mildly threaten" him — a call Darling later recorded happening in his memoirs.
• An apparent tip that the European Union was preparing a €500 billion rescue package for the eurozone.
• Bank records that appear to show $75,000 paid from accounts linked to Epstein into accounts associated with Mandelson in 2003–2004, and emails suggesting a £10,000 transfer to Mandelson’s husband, Reinaldo Avila da Silva, to fund an osteopathy course. Mandelson and his spokesperson have said they do not recall receiving such payments and questioned the documents’ authenticity.
• Photographs and other images included in the DOJ release; one image appears to show Mandelson in his underwear beside an unidentified woman. The context and provenance of that photo are unclear, and it is not in itself presented as evidence of criminality.

Political Fallout

Starmer removed Mandelson as ambassador after earlier Epstein-related disclosures and faced renewed criticism after the DOJ’s latest release. Mandelson subsequently resigned from the House of Lords and from the Labour Party; he has said he does not want to cause further embarrassment. Former prime minister Gordon Brown has provided information to the Metropolitan Police and publicly criticised the alleged conduct as “inexcusable and unpatriotic.”

Parliamentary and Legal Developments

MPs have demanded release of documents relating to Mandelson’s vetting and appointment, including communications between Mandelson and Downing Street in the run-up to his posting. The government has signalled it will publish relevant material subject to national security and diplomatic exemptions, while the Metropolitan Police has asked for a delay to avoid prejudicing its inquiry.

Responses and Context

Keir Starmer said he was “beyond infuriated” by the revelations and that Mandelson had lied to his team about the extent of his relationship with Epstein. Opposition politicians from across the spectrum have seized on the affair to criticise the government’s judgement. Legal and political commentators note that the documents, while serious, are part of an ongoing investigation and that allegations in released material have not been tested in court.

What Happens Next: The Metropolitan Police investigation will determine whether criminal charges follow. Parliament will continue to press for the release of vetting records and related documents, and further political consequences for Starmer and others remain possible depending on what those papers show.

Note: The article preserves the distinction between allegations contained in released documents and proven wrongdoing. Mandelson has denied recollection of the alleged payments and has not been convicted of any offence related to these matters.