Peter Mandelson, ex-British envoy to US, resigns from House of Lords over ties with Jeffrey Epstein

Peter Mandelson has stepped down from the House of Lords following revelations that he exchanged emails with the disgraced financier and convicted sex offender Jeffrey Epstein, some of which allegedly contained confidential UK government material.

The resignation came after Prime Minister Keir Starmer informed cabinet colleagues that a dossier relating to Mandelson’s correspondence had been handed to the police.

The emails reportedly included internal briefings Mandelson received while serving as business secretary under Gordon Brown, touching on sensitive government responses to the global financial crisis. Starmer told ministers he was deeply disturbed by the disclosures and had instructed officials to prepare draft legislation aimed at removing Mandelson’s peerage as swiftly as possible. While Mandelson’s departure means he will no longer sit in the Lords from Wednesday, his title remains intact, as peerages can only be revoked through an act of parliament.

Announcing the resignation, the speaker of the House of Lords confirmed Mandelson’s immediate exit from the chamber. Starmer later criticised the current system, arguing it was unacceptable that peers could only be stripped of their titles through primary legislation, a process not used for more than a century. Downing Street said the prime minister believes the House of Lords should have faster and more effective mechanisms to deal with serious misconduct. His spokesperson said Starmer considers it absurd that, unlike almost any other profession, peers cannot be dismissed without passing a new law.

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In a cabinet meeting, Starmer accused Mandelson of damaging public trust, saying recent revelations about politicians being unable to account for large sums of money had left voters disillusioned and cynical about politics as a whole. The cabinet secretary has now launched an investigation into the leaked emails, which date back to the final year of Brown’s government. These include messages discussing potential sales of state assets and early details of a €500bn European bailout. The Metropolitan Police confirmed they are assessing the material and considering whether a broader criminal inquiry is warranted.

Among the documents reportedly shared with Epstein was a confidential briefing intended for the prime minister, outlining proposals to raise £20bn through asset sales. Other emails suggest Mandelson sought to influence policy on bankers’ bonuses, hinted at advance knowledge of eurozone rescue measures, and proposed that senior banking figures pressure the chancellor over pay restrictions. The Cabinet Office said an initial review of files released by the US Department of Justice indicated they may contain market-sensitive information linked to efforts to stabilise the economy during the 2008 financial crisis. Starmer reportedly warned ministers that further damaging revelations could still emerge.

US court disclosures also appear to show that Epstein transferred $75,000 into accounts connected to Mandelson while he was still a Labour MP. Separate documents indicate Epstein sent £10,000 to Mandelson’s partner, now his husband, Reinaldo Avila da Silva, to help fund an osteopathy course and related expenses in 2009.