Lord Mandelson is facing a Cabinet Office probe today amid claims he sent Jeffrey Epstein sensitive No10 emails.
The former Cabinet minister finally quit Labour last night, with Keir Starmer branded ‘weak’ for failing to kick him out earlier.
Lord Mandelson is at the centre of a new storm after a huge tranche of documents was released by the American administration last week.
They include emails forwarded to the paedophile financier in 2009, in which key Downing Street aides and ministers discussed the UK’s resilience to the Credit Crunch crisis and what government assets might be ‘saleable’.
Other documents seemingly show Lord Mandelson – Business Secretary at the time – advising Epstein how he and his powerful friends could lobby against a bankers’ bonus tax.
What appears to be bank records from 2003 and 2004 suggest that Epstein wired the New Labour architect tens of thousands of pounds – although Lord Mandelson has said he believes they are fake.
Some MPs are demanding his peerage is stripped – even though he is already on a ‘leave of absence’ from Parliament and has indicated he will not return.
Downing Street said Sir Keir believes Lord Mandelson ‘should not be a member of the House of Lords’ and has asked the Cabinet Secretary to ‘urgently’ review his emails to Epstein.
In a fresh humiliation, a photo has emerged of Lord Mandelson in his underwear chatting to a woman in a bathrobe, seemingly at Epstein’s Paris apartment.
Meanwhile, there are reports the US House Oversight Committee is set to summon him to testify on his links to the paedophile financier.
A photograph released as part of the Epstein files apparently shows Lord Mandelson talking to a woman who is wearing a white bath robe
The PM was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein
Lord Mandelson’s entry on the Parliament website changed to ‘non-affiliated’ today. He is on leave of absence from the House
The tranche of documents includes an email seemingly from Lord Mandelson to Epstein, talking about the UK government having ‘saleable’ assets
The 2009 memo highlighted that the government was looking to get investment moving
The memo made clear that the government was looking to sell off assets to avoid tax hikes
In a letter to general secretary Hollie Ridley last night, Lord Mandelson said: ‘I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.
‘Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me.
‘While doing this I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party.’
Lord Mandelson said: ‘I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.
‘I have dedicated my life to the values and success of the Labour Party and in taking my decision, I believe I am acting in its best interests.’
Documents from the release appear to show Lord Mandelson suggesting to Epstein in 2009 that he would lobby the UK government over a levy on bankers’ bonuses.
An email dated December 15, 2009, which appears to be from Epstein, reads: ‘any real chance of making the tax only on the cash portion of the bankers bonus’.
The reply, apparently from Lord Mandelson, reads: ‘Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.’
The emails suggest the peer, then business secretary, was prepared to lobby the Government over the so-called ‘super tax’ introduced in early December 2009, by then-chancellor Alistair Darling, to clamp down on bank profits being used to pay large bonuses for bankers in the wake of the financial crisis.
Meanwhile, bank statements appear to show the peer received some $75,000 from Epstein between 2003 and 2004, when he was a Labour MP.
Lord Mandelson said he did not recall ever receiving the payments, and questioned their authenticity.
Tax campaigner Dan Neidle has been highlighting sensitive government emails apparently leaked to Epstein in the wake of the 2008 financial crisis.
They include one from June 2009 seemingly forwarded by Lord Mandelson, with a briefing for then-PM Gordon Brown about the UK’s economic resilience.
The message is introduced as an ‘interesting note that’s gone to the PM’.
It refers to the UK having ‘saleable assets’ – with Epstein apparently having replied to Lord Mandelson asking what they were.
Another document in the cache was an analysis of business lending in August 2009 drawn up by government minister Baroness Vadera.
The sender of the email to Epstein has been redacted, but Lord Mandelson was involved in the discussions.
The peer did not immediately respond to requests for comment today.
The three million papers related to Epstein include evidence he sent £10,000 to Mandelson’s Brazilian husband Reinaldo Avila da Silva to pay for an osteopathy course.
Da Silva emailed Epstein on September 7, 2009 – two months after the paedophile was released from prison after serving 12 months of an 18-month sentence on child sex offences – and asked for money.
There was also a reference in one email inviting a woman called ‘Svetlana’ to a meeting with Lord Mandelson, although he says he has never heard of her.
Touring broadcast studios for the government this morning, Education minister Olivia Bailey said she was ‘pleased’ Lord Mandelson had resigned from the Labour Party.
‘There were clearly questions that Peter Mandelson would need to answer. He’s taken this decision, it’s the right decision,’ she told Times Radio.
But asked whether he should remain a member of the House of Lords she said: ‘The reality of the removal of a peerage is a complicated one. You have to have been, I believe, sent to jail for over 12 months or an Act of Parliament needs to be passed…
‘He is not currently in the House of Lords and I do understand that he does not intend to return.’
MPs have been turning their fire on Sir Keir over his handling of the situation.
The PM was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein.
Labour MP John McDonnell said: ‘I warned Keir Starmer on Mandelson but he never listened.’
After the latest allegations emerged, backbencher Andy McDonald said: ‘Yet another colossal misjudgment by Mandelson. He should be immediately expelled from the Party.’
One Labour MP told The Times: ‘It’s a shame he was not expelled.’
SNP MP Stephen Flynn said: ‘Starmer was too weak to remove him.’
Tax campaigner Dan Neidle has been highlighting apparent government emails leaked to Epstein, revealed in the latest release. The name of the sender is blanked out and Lord Mandelson did not respond to questions about whether it was him
The released documents 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 correspondence between Lord Mandelson and Epstein appears to have continued long after he was jailed
A Labour Party spokesman said: ‘It is right that Peter Mandelson is no longer a member of the Labour Party. Disciplinary action was underway prior to his resignation.
‘Jeffrey Epstein’s heinous crimes destroyed the lives of so many women and girls, and our thoughts remain with his victims.’
The Conservatives called for a ‘full and thorough independent investigation’ into Lord Mandelson’s appointment as US ambassador, after his resignation from the Labour Party.
Kemi Badenoch told broadcasters on a visit in London: ‘I think there is a lot that needs to be looked into, including investigating how he ever came to be appointed, and all levers which can be pulled in order to remove him from public office looked into, including removal from the House of Lords.’
A Conservative Party spokesman said: ‘Lord Mandelson is completely disgraced. Yet Keir Starmer lacked the backbone to take action, allowing Mandelson to resign from the Labour Party instead of kicking him out.
‘Keir Starmer and his chief of staff appointed Mandelson ambassador despite his relationship with Epstein, and then refused to act even as the mountain of evidence against him grew.
‘Given the Prime Minister’s appalling lack of judgment and the participation of his Downing Street operation, there must now be a full and thorough independent investigation.’
Lord Mandelson told the Daily Mail yesterday he had no record or recollection of receiving any payments, and questioned whether the documents were real.
‘I have no record and no recollection of receiving these sums and do not know if the documents are authentic,’ he said.
‘I can say clearly, though, I regret ever having known Epstein. I was wrong to believe Epstein and swallow his lies following his conviction and to continue my association with him afterwards. I deeply regret doing so and apologise unequivocally to the women and girls who suffered.’
Labour MPs had been demanding that Sir Keir kick Lord Mandelson out of the party before he went of his own accord
Labour backbenchers also called for Lord Mandelson to be ousted from the Upper House. He is currently on a leave of absence from Parliament
A source insisted the financial statements could not be taken at face value without supporting evidence, pointing to formatting errors.
They highlighted the suggestion Lord Mandelson had a US social security number, saying he did not, and argued it was not possible to pay dollar cheques directly into UK bank accounts. They urged JP Morgan to confirm whether the documents were real.
The source also stressed the US Department of Justice caveat that the release ‘may include fake or falsely submitted images, documents or videos’ and that ‘some of the documents contain untrue and sensationalist claims’.