‘It’s terminal’: Now even Cabinet is turning against Starmer while Epstein scandal engulfs him… as it’s revealed PM did know Mandelson kept in touch with paedophile

Senior Labour MPs rounded on Sir Keir Starmer last night after he admitted for the first time that he knew about Peter Mandelson‘s longer-term relationship with Jeffrey Epstein before bringing him back into government. 

After months of evasion, the Prime Minister was forced to admit he appointed the Labour peer as US ambassador despite being told by officials that he had remained friends with Epstein even after his conviction for child sex offences in 2008. 

Downing Street confirmed Sir Keir also knew that Mandelson had continued to stay at Epstein’s house while he was in prison and after he was released. 

The admission horrified Labour MPs, with one former minister admitting it was ‘one of the worst’ days of Sir Keir’s premiership so far, while others went so far as to call for the PM’s resignation.

‘It’s time for a fresh start,’ a former minister told The Guardian, with another warning they were unsure they could back him in a confidence vote. 

Even Sir Keir’s closest allies were unable to come to his defence, as one cabinet minister admitted Mandelson’s appointment was ‘very hard to defend’ and was ‘yet another self-inflicted wound’.

Another minister told The Times it felt ‘terminal’ for Sir Keir, while a third said his performance in Prime Minister’s Questions was ‘physically painful’. 

There were also calls for the PM’s chief aide, Morgan McSweeney, who is understood to have been key to Mandelson’s appointment, to resign with MPs saying they had ‘lost confidence’ in him and his position was now ‘untenable’.

Keir Starmer (pictured) is facing calls to resign as PM after admitting he knew about Peter Mandelson’s relationship with Jeffrey Epstein before bringing him back into government

Lord Mandelson (pictured with Sir Keir last year) was ousted as US ambassador last September after other revelations about his ties to Epstein

Lord Mandelson (pictured with Sir Keir last year) was ousted as US ambassador last September after other revelations about his ties to Epstein 

There have also been calls for the PM's chief aide, Morgan McSweeney (pictured), who is understood to have been key to Mandelson's appointment, to resign

There have also been calls for the PM’s chief aide, Morgan McSweeney (pictured), who is understood to have been key to Mandelson’s appointment, to resign

Angela Rayner,  Sir Keir's former deputy PM, had led a huge Labour revolt against his handling of the Peter Mandelson scandal

Angela Rayner,  Sir Keir’s former deputy PM, had led a huge Labour revolt against his handling of the Peter Mandelson scandal

It is understood that when Mandelson was appointed towards the end of 2024, Sir Keir was handed a two-page document by the Cabinet Office ethics team, summarising the well-rehearsed conflicts of issues and previous scandals.

In what one source told The Times was ‘cut and pasted from Google’, the matters relating to Epstein were all in the public domain, including a warning from a 2019 internal JP Morgan report that ‘Jeffrey Epstein appears to maintain a particularly close relationship with Prince Andrew… and Lord Mandelson, a senior member of the British government’.

Details of when the architect of New Labour had stayed at the convicted paedophile’s home, including in 2009 when Epstein was still in prison, were also spelled out. 

That, it was suggested, was the extent of the vetting Mandelson faced. During angry clashes in the Commons, the PM said he had been ‘lied’ to repeatedly by Mandelson and insisted that the proper ‘process’ had been followed.

But last night he was facing questions from all sides about his own judgment in continuing with the appointment. Kemi Badenoch, who forced the admission from Sir Keir, said his decision to press ahead was ‘absolutely shocking’.

Yesterday’s admission came after Mrs Badenoch deployed a rare Commons procedure to force the Government to release key documents surrounding the controversial appointment. The PM said he was willing to release all documents except those relating to national security and international relations.

Mrs Badenoch said: ‘The national security issue was appointing Mandelson in the first place… This is not about national security; this is about the Prime Minister’s job security.’

Sir Keir insisted he acted swiftly to sack Mandelson last year when it emerged he had advised Epstein to appeal against his conviction for soliciting a minor. 

He told MPs he was ‘as angry as the public’ about the conduct of his former ally. ‘He lied repeatedly to my team when asked about his relationship with Epstein… I regret appointing him.’

It is understood that when Mandelson (pictured) was appointed towards the end of 2024, Sir Keir was handed a two-page document by the Cabinet Office ethics team

It is understood that when Mandelson (pictured) was appointed towards the end of 2024, Sir Keir was handed a two-page document by the Cabinet Office ethics team

The pair (pictured) exchanged hundreds of emails, many of which were laced with sexual innuendo or even brazen references to sex

Peter Mandelson pictured with Jeffrey Epstein on a yacht

A photograph released as part of the Epstein files apparently shows Lord Mandelson in his underwear talking to a woman who is wearing a white bath robe

A photograph released as part of the Epstein files apparently shows Lord Mandelson in his underwear talking to a woman who is wearing a white bath robe

Documents released in the Epstein files include an Epstein bank statement with a $25,000 transfer to Peter Mandelson - although the peer says he cannot remember receiving the money and believes it is fake

Documents released in the Epstein files include an Epstein bank statement with a $25,000 transfer to Peter Mandelson – although the peer says he cannot remember receiving the money and believes it is fake 

The tranche of documents also includes an email seemingly from Lord Mandelson to Epstein, talking about the UK government having 'saleable' assets

The tranche of documents also includes an email seemingly from Lord Mandelson to Epstein, talking about the UK government having ‘saleable’ assets 

Dame Emily Thornberry, Labour chairman of the foreign affairs committee, said the fiasco could have been avoided if the PM had allowed Mandelson to be interviewed by MPs such as herself, instead of rushing through the political appointment.

Mr John McDonnell, Jeremy Corbyn’s former number two, told Sky News the PM should quit: ‘I’ve never called for him to go but I have lost confidence in him. The decisions around Mandelson pushed me over the edge.’

Asked whether the vetting process had thrown up Mandelson’s ongoing relationship with Epstein, the PM said: ‘Yes, it did.. As a result, various questions were put to him.’

Sir Keir said the vetting documents would confirm ‘the extent to which, time and time again, Mandelson completely misrepresented the extent of his relationship with Epstein and lied throughout the process.’

The toxic timeline

1999 The year that Andrew said he first met Epstein, introduced by Ghislaine Maxwell. He visited Epstein’s private island in February.

2002 An article in New York Magazine said Lord Mandelson attended a party at Epstein’s Manhattan home alongside Donald Trump.First emails in the Epstein files between Mandelson and Epstein begin, when he wrote a memo encouraging Tony Blair to meet Epstein.

2003 Mandelson wrote a message to Epstein describing him as his ‘best pal’. Bank statements appear to show that from 2003 to 2004 Epstein paid £54,750 into accounts of which Mandelson was believed to be a beneficiary.

2006 As police in Florida suggest Epstein should be charged with four counts of unlawful sexual activity with a minor, Lord Mandelson tells him: ‘I am here whenever you need.’

2008 Epstein is sentenced to 18 months in prison. Mandelson urges him in an email to ‘fight for early release’.

2009 Mandelson stays at Epstein’s Manhattan apartment while the paedophile is in jail, an internal report by JP Morgan bank suggests.

Epstein is released in July. Two months later, he sent Mandelson’s now husband Reinaldo Avila da Silva £10,000. On June 13 the files suggest Mandelson leaked Epstein a sensitive No10 document proposing £20billion of asset sales and revealed Labour’s tax policy plans.

2010 Files suggest Mandelson forwarded minutes of a meeting between chancellor Alistair Darling and US treasury secretary Larry Summers five minutes after he received them. On May 9, he appears to give Epstein notice of a €500billion euro bailout by the EU.

2013 The last known time that Mandelson visited Epstein at his New York mansion.

2016 Documents show Mandelson remained in contact with Epstein until at least 2016.

2019 Epstein, arrested on sex trafficking charges, is found dead in his cell. In November, Andrew gives his Newsnight interview.

2022 Maxwell is jailed for 20 years in February after being convicted for her role in helping to lure and groom underage girls for Epstein to abuse.

2025 In February, Keir Starmer appoints Mandelson as the UK’s ambassador to the United States. He is sacked in September.

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