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Keir Starmer has suggested that Peter Mandelson should resign from the House of Lords and that the upper chamber should urgently modernise its disciplinary procedures to strip him of his peerage.
The cabinet secretary, the UK’s most senior civil servant, will also investigate Mandelson’s actions as business secretary when Labour was last in power, after emails to Jeffrey Epstein about government policy emerged.
Downing Street said that if Mandelson was called to testify before the US Congress inquiry into the Epstein files then he should, after a further huge tranche of documents was released over the weekend.
Mandelson was sacked last year as UK ambassador to Washington after new details came to light about his relationship with the convicted sex offender. He resigned his membership of the Labour party on Sunday night, saying he had done so to avoid causing it “further embarrassment” after more revelations about his friendship with Epstein. Labour said that disciplinary action against him had already been under way.
In a briefing to journalists on Monday, Starmer’s official spokesperson said: “The prime minister has asked for this to be urgently looked at. The prime minister believes that Peter Mandelson should not be a member of the House of Lords or use the title.
“However, the prime minister does not have the power to remove it. He is calling on those in the Lords to work with the government to modernise disciplinary procedures in the house, to allow for the easier removal of Lords who have brought the house into disrepute.”
The current legislation to remove a peer has not been used since the first world war, and the government believes it would be too complex to use it to strip Mandelson of his peerage now.
Government insiders hope the senior politician will choose to stand down from the Lords of his own accord, but will swiftly change the disciplinary process regardless.
Downing Street said the prime minister had asked the cabinet secretary, Chris Wormald, to review all available information regarding Mandelson’s contacts with Epstein during his period as a government minister, and to report back to him.
Emails released on Friday appeared to show Mandelson, then the business secretary in Gordon Brown’s government, assuring Epstein in December 2009 that he was “trying hard” to change government policy on bankers’ bonuses at his request.
In an email exchange on 15 December 2009, in which addresses are redacted, Epstein asked Mandelson if the policy could be changed, writing: “Any [sic] real chance of making the tax only on the cash portion of the bankers bonus.” Mandelson replied: “Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.”
Mandelson also appeared to have leaked a confidential UK government document in 2009 to Jeffrey Epstein that was intended for Brown, the then prime minister.
Mandelson, who was business secretary at the time, forwarded an economic briefing to the late sex offender on 13 June 2009 and said: “Interesting note that’s gone to the PM.”
The email, which had subject line “Business issues”, was sent by Brown’s special adviser Nick Butler in the wake of the global financial crisis.
Starmer’s spokesperson also said that if Mandelson was called to testify before the US Congress about Epstein, he should. The files released over the weekend had led to the prime minister deciding to take further action.
“The prime minister has always said that anyone who’s got information should be prepared to share that information in whatever form they are asked to do that, because you can’t be victim-centred if you are not prepared to do that,” he said.
On his trip to China last week, Starmer had said that Andrew Mountbatten-Windsor should testify to Congress, but that he had “nothing more to add” on Mandelson.
Downing Street was aware at the time of appointing the former Labour grandee that making him US ambassador was a high-risk, high-reward strategy, but could not have envisaged such a swift fall from grace.
Kemi Badenoch, the Conservative leader, had said the Cabinet Office must launch a full investigation into Mandelson’s links with Epstein and the run-up to his appointment as US ambassador.
Documents released by the US Department of Justice on Friday related to Epstein appeared to show the disgraced financier sent the then Labour MP $75,000 (£54,725). Bank statements appear to show three separate payments of $25,000 referencing the former UK business secretary being sent from Epstein’s JP Morgan bank accounts.
Correspondence appeared to show that Mandelson’s husband, Reinaldo Avila da Silva, had successfully asked the financier to pay him £10,000 in September 2009 to fund an osteopathy course and other expenses. Mandelson has said he has no recollection of the funds being requested or offered.
On Sunday evening Mandelson resigned his membership of the Labour party, saying he had done so to avoid causing it “further embarrassment” after more revelations about his friendship with Epstein.
A Labour spokesperson said on Monday that disciplinary action to kick him out of the party in the wake of the Epstein scandal was already under way.
“It is right that Peter Mandelson is no longer a member of the Labour party. Disciplinary action was under way 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,” they said.
