Prime Minister Keir Starmer is facing the gravest crisis of his premiership following a bombshell admission in Parliament.
Under intense questioning, Starmer confirmed he was aware of Lord Peter Mandelson’s continued friendship with convicted sex offender Jeffrey Epstein—after Epstein’s 2008 conviction—at the time he appointed Mandelson as the UK’s Ambassador to the United States.
The admission has ignited a firestorm within the Labour Party and led to the immediate opening of a criminal investigation into Mandelson for alleged misconduct in public office.
The Admission
During a high-tension Prime Minister’s Questions (PMQs) on Wednesday, February 4, 2026, Starmer acknowledged for the first time that his vetting team was aware Mandelson had maintained contact with Epstein following his prison sentence for soliciting a minor.
However, the Prime Minister insisted he was “repeatedly lied to” by Mandelson regarding the extent of that relationship.
“He lied repeatedly to my team when asked about his relationship with Epstein before and during his tenure as ambassador,” Starmer told the House of Commons. “I regret appointing him. If I knew then what I know now, he would never have been anywhere near government.”
New Evidence: “Liberation Day” and Sensitive Leaks
The crisis reached a breaking point this week following the U.S. Department of Justice’s release of three million pages of Epstein-linked files. The documents provided shocking new details that were allegedly not disclosed during the initial vetting process:
- “Liberation Day”: Emails show Mandelson celebrating Epstein’s 2009 release from prison, referring to it as “Liberation Day!” and engaging in lewd exchanges with the financier.
- State Secret Allegations: Files suggest Mandelson, while serving as Business Secretary under Gordon Brown, may have leaked market-sensitive government documents and economic briefings to Epstein.
- Financial Ties: Records indicate Epstein may have transferred upwards of $75,000 to accounts linked to Mandelson or his partner, Reinaldo Avila da Silva, between 2003 and 2004.
Political Fallout
The scandal has already claimed Mandelson’s career. He resigned from the Labour Party on Sunday and formally retired from the House of Lords yesterday to avoid “further embarrassment” to the government.
Starmer, however, remains in the crosshairs.
- Internal Revolt: Labour backbenchers, led by senior figures like Angela Rayner and Meg Hillier, forced the government’s hand on Wednesday, requiring the full release of all vetting and appointment documents related to Mandelson.
- Privy Council: In a rare move, Starmer confirmed he has reached an agreement with King Charles III to remove Mandelson from the Privy Council, citing a “litany of deceit” that brought the body into disrepute.
- Criminal Probe: The Metropolitan Police have officially launched a criminal investigation into Mandelson for misconduct in public office, a charge that carries a maximum sentence of life imprisonment.
