LONDON — Former UK ambassador to the United States Peter Mandelson has resigned from the Labour Party after newly released documents reignited scrutiny of his past association with convicted sex offender Jeffrey Epstein, deepening a political scandal that now threatens to engulf the House of Lords and test Prime Minister Keir Starmer’s leadership.

The veteran Labour figure said he stepped down to avoid causing “further embarrassment” to the governing party, as allegations of financial ties, forwarded confidential communications, and previously undisclosed interactions surfaced in files released by the US Department of Justice.

The fallout has been swift. Starmer has called for Mandelson to relinquish his peerage and urged reforms that would make it easier to strip disgraced members of their titles, while ordering an urgent review into the former minister’s contact with Epstein during his time in government.

Payments, Emails, And Renewed Scrutiny:

Bank records in the DOJ documents suggest Epstein transferred about $75,000 to accounts linked to Mandelson in 2003 and 2004, allegations the former ambassador says he does not recall and questions the authenticity of.

The files reportedly also include email exchanges indicating a close relationship between the two men and a controversial photograph of Mandelson in underwear beside a woman whose face has been redacted, further intensifying political pressure.

In his resignation letter, Mandelson apologised to Epstein’s victims, saying he believed claims of financial payments were false but needed further investigation.

“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,” he wrote.

The scandal represents the latest chapter in a turbulent political career spanning decades at the heart of British government, from key roles in the Blair and Brown administrations to his brief stint as ambassador to the United States.

Pressure Mounts Over The House Of Lords:

Downing Street has publicly stated that the prime minister believes Mandelson “should not be a member of the House of Lords or use the title.”

Removing a life peer is legally complex and would likely require fresh legislation, a process last used more than a century ago to expel members of the nobility accused of siding with Germany during the First World War.

The Cabinet Secretary, Sir Chris Wormald, has been tasked with urgently reviewing all available information about Mandelson’s links to Epstein while he was a government minister. Opposition figures have also called for a wider investigation into how Mandelson was appointed to senior roles despite earlier controversies.

Green Party leader Zack Polanski criticised the situation on social media, accusing Labour of breaking its own manifesto promise to “ensure all peers meet the high standards the public expect of them,” underscoring the political fallout.

Forwarded No. 10 Emails And Controversial Communications:

Among the most damaging revelations is that Mandelson forwarded a confidential email from then-Prime Minister Gordon Brown to Epstein in 2009, a detailed assessment of the UK economy during the post-financial crisis period. Mandelson wrote to Epstein: “Interesting note that’s gone to the PM.”

The correspondence included sensitive government discussions about corporate tax policy, asset sales, and Labour’s strategy ahead of the next election. Former officials have described the email forwarding as “shocking” and “improper,” further fueling questions about judgment at the centre of government.

Possible US Testimony And Transatlantic Implications:

The repercussions may extend beyond Britain. Reports indicate Mandelson could be summoned to testify before the US Congress as part of ongoing inquiries into Epstein’s global network. Calls for testimony have intensified, demanding clarity on what he and other high-profile figures knew about Epstein’s activities.

The combination of alleged payments, forwarded confidential emails, and photographs of Mandelson with a partially redacted individual in the Epstein files has made the case an international story, with both political and potential legal consequences.

Starmer Under Political Pressure:

Critics argue the government has been reactive rather than proactive, noting Mandelson had already been removed from his ambassadorial post last year after earlier Epstein-related revelations.

The prime minister’s latest intervention, urging Mandelson to step down from the Lords, signals a tougher stance as Labour attempts to contain reputational damage ahead of mounting scrutiny. At the same time, the controversy has revived broader questions about judgment at the heart of government and the vetting of senior appointments.

Scottish Labour leader Anas Sarwar called Mandelson’s departure from the party “the right decision” but stopped short of commenting on his continued place in the House of Lords, noting the matter would likely require legislation.

A Scandal With Wider Implications:

Mandelson’s fall from senior diplomat to political liability underscores the enduring global impact of Epstein’s crimes, which destroyed the lives of many women and girls and continue to reverberate through political institutions years after his death.

While inclusion in the files does not itself prove criminal wrongdoing, the combination of alleged payments, correspondence, and political connections has intensified demands for transparency and accountability at the highest levels of public life.

For Starmer, the episode poses a delicate balancing act: demonstrating zero tolerance for misconduct while confronting questions about why a figure with known associations was entrusted with one of Britain’s most sensitive diplomatic posts.

As investigations continue on both sides of the Atlantic, the Mandelson controversy is far from over, with the possibility of congressional testimony, legislative reform, and further document releases threatening to prolong the political storm.