Peter Mandelson set to be named ambassador to US as Labour plans for Donald Trump

Peter Mandelson is set to be named as the UK’s next ambassador to the US.

Government sources claimed the decision to appoint the Labour grandee shows the importance of relations with Donald Trump ’s administration. Lord Mandelson, a key figure in Tony Blair’s New Labour Government, was one of Keir Starmer’s key advisors in the build-up to the General Election.

The former Business Secretary, who held multiple positions under Tony Blair and Gordon Brown, is viewed as a trusted pair of hands amid fears Trump will impose tariffs on the UK.

A Government source told the BBC : “The fact the prime minister has chosen to make a political appointment and sent Lord Mandelson to Washington shows just how importantly we see our relationship with the Trump administration.

“We’re sending someone close to the prime minister with unrivalled political and policy experience, particularly on the crucial issue of trade. He’s the ideal candidate to represent the UK’s economic and security interests in the USA.”

He will replace Dame Karen Price, whose term is set to end early in the New Year. Mr Trump is set to return to the White House in January.

In a phone call with Mr Starmer on Wednesday he agreed to strengthen the “special relationship” between the two nations. But it is unclear whether he will take a hard line on trade after promising to deliver an America-first agenda.