The UK government has released the first major tranche of internal documents related to Lord Peter Mandelson’s short-lived tenure as US Ambassador, revealing that officials warned of a "general reputational risk" over his ties to Jeffrey Epstein months before he was sent to Washington.
The 147-page release, published at 12:30 PM on Wednesday following Prime Minister’s Questions, contains a pivotal due diligence report from December 2024. The papers show that while the Cabinet Office "surfaced" concerns about Mandelson’s relationship with the late sex offender, the appointment was pushed through as a "high-priority" move to secure a bridge to the incoming Trump administration.
The £500,000 Severance Demand
Among the most striking revelations in the files is a dispute over Mandelson’s exit from the role. The documents show that following his sacking in September 2025, Mandelson initially demanded a severance payment of £547,201, the equivalent of the remaining three years of his four-year salary.
Treasury officials eventually negotiated this down to a "special severance deal" of £75,000. Internal emails describe the final settlement as a success, with one official noting they did "well to get this settlement down this low with minimal fuss" given the potential for a protracted legal battle.
A ‘Political Storm’ for Starmer
The release adds significant pressure to Prime Minister Sir Keir Starmer, who is facing accusations from the Conservative opposition that his judgment was "found wanting." Shadow Cabinet Office Minister Alex Burghart claimed the files prove the Prime Minister ignored clear "red lights" during the vetting process.
Sir Keir has previously stated that he only became aware of the "depth and extent" of Mandelson’s relationship with Epstein after a separate cache of documents was published by the US Department of Justice in January. Those US files suggested that Mandelson may have shared market-sensitive information with Epstein during his time as Business Secretary in 2009.
Current Legal Status
Lord Mandelson, 72, remains under investigation by the Metropolitan Police for alleged misconduct in public office. Although he was arrested at his London home on February 23, he was released from his bail conditions last week after police determined he was not a "flight risk."
Cabinet Minister Darren Jones confirmed today that while most relevant documents are being released in batches, one specific file has been withheld at the request of the Metropolitan Police to avoid prejudicing the ongoing criminal inquiry.