Published by Global Banking & Finance Review®
Posted on September 11, 2025
4 min readLast updated: January 22, 2026
Add as preferred source on GooglePeter Mandelson was removed as UK ambassador to the US due to ties with Jeffrey Epstein, causing a diplomatic stir for PM Keir Starmer.
By Elizabeth Piper and Muvija M
LONDON (Reuters) - Peter Mandelson, Britain's urbane ambassador to the U.S., was sacked by Prime Minister Keir Starmer on Thursday after a trove of emails revealed the depth of his ties with the late convicted U.S. sex offender Jeffrey Epstein.
Known for his behind-the-scenes manoeuvring during a career lasting over three decades, Mandelson was forced from Britain's most desirable diplomatic post after some of his letters and emails to Epstein were revealed this week.
Starmer, struggling in opinion polls after numerous setbacks, had strongly backed his ambassador on Wednesday as a state visit by U.S. President Donald Trump, with whom Mandelson had developed strong ties, looms next week.
Trump has also faced questions about his links with Epstein, with the White House denying that an alleged birthday letter from him to the late financier is authentic.
MANDELSON CALLED EPSTEIN 'MY BEST PAL'
Mandelson, who was key to the Labour Party's success when Tony Blair was prime minister, had come under scrutiny after U.S. lawmakers released documents including a letter calling Epstein "my best pal".
Emails were then published in the media showing that Mandelson had advised Epstein to fight for early release in 2008 when he was about to be sentenced to 18 months in jail for soliciting a minor.
"The emails show that the depth and extent of Peter Mandelson's relationship with Jeffrey Epstein is materially different from that known at the time of his appointment," Britain's foreign ministry said.
The reporting of Mandelson's suggestion that Epstein's first conviction was wrongful and should be challenged was "new information", it said, adding that Starmer had asked for his removal.
On Wednesday, Mandelson had said he deeply regretted ever meeting Epstein, and that he had carried on the association "for far longer than I should have done", suggesting he had believed the lies of a "charismatic criminal liar".
Epstein, who died in prison in 2019, had counted princes and the political elite among his friends, many of whom have since been tarred by the association. Britain's Prince Andrew, a younger brother of King Charles, was removed from official royal duties over his ties to Epstein. He denies any wrongdoing.
Mandelson's statement initially seemed to satisfy the prime minister. Starmer had heaped praise on Mandelson, the first political appointee to the position in almost half a century, for his efforts in securing a trade deal with the United States.
But after twice being forced out of cabinet under Blair, Mandelson was no stranger to controversy.
STARMER ACTED 'DECISIVELY'
He was photographed on holiday with Epstein, one of several of Mandelson's friends or former friends, which raised questions about the ex-ambassador's judgment.
In 2008, it was revealed that Mandelson had spent time on a yacht belonging to Russian businessman Oleg Deripaska, who is now under sanctions over Russia's war in Ukraine. Mandelson denied granting favours to the Russian businessman while he was European trade commissioner.
Several Labour officials had warned Starmer about employing Mandelson, but the British leader went ahead, believing he could help build UK-U.S. relations under a Trump administration.
A spokesperson for Starmer told reporters that after reviewing the new information, Starmer had taken "prompt and decisive action" earlier on Thursday, saying the British leader found the emails "reprehensible".
But some lawmakers in his party suggested Starmer should have moved more swiftly against Mandelson. The prime minister was also criticised after he backed his former deputy, Angela Rayner, when questions were raised in the British media late last month about her tax affairs, before he accepted her resignation last week.
With economic growth failing to ignite, potential tax rises looming and Nigel Farage's populist Reform UK overtaking Labour in the polls, Starmer's party is growing restless.
"As soon as it became major news it should have been nipped in the bud," said one Labour lawmaker on condition of anonymity, describing the handling of the sacking as "a total mess".
(Reporting by Muvija M and Elizabeth Piper; additional reporting by Alistair Smout, Editing by Kate Holton, Kevin Liffey, William Maclean)
Peter Mandelson was dismissed by Prime Minister Keir Starmer after emails revealed the extent of his ties with Jeffrey Epstein, which were deemed inconsistent with his role.
Mandelson expressed deep regret for meeting Epstein and acknowledged that he maintained the association for longer than he should have, indicating he had believed Epstein's lies.
Starmer acted decisively after reviewing the new information, stating that the emails revealed a materially different relationship than what was known at the time of Mandelson's appointment.
Mandelson's firing came amid criticism of Starmer's leadership, with some lawmakers suggesting he should have acted more swiftly to address the controversy surrounding Mandelson.
Mandelson was a key figure in the Labour Party's success during Tony Blair's prime ministership, known for his behind-the-scenes maneuvering and influence in UK politics.
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