Sir Keir Starmer is under renewed pressure over Lord Peter Mandelson’s links to Jeffrey Epstein after files suggested the paedophile financier sent $75,000 to bank accounts linked to the former US ambassador.
Mandelson, who was sacked from his diplomatic post last year due to his friendship with Epstein, denies any knowledge of the payments and has questioned whether the documents are authentic.
The Labour peer has taken a leave of absence from the Lords and is not planning to return anytime soon, The i Paper understands.
No 10 sources would not be drawn on whether the Government could use existing laws, or new powers, to remove the peerage given to him under the Labour government in 2008, following the new claims.
Starmer, who intervened over the weekend to urge former prince Andrew Mountbatten Windsor to testify in the US over his links to Epstein, has been urged to sever all ties with Mandelson.
In remarks on Sunday, Cabinet minister Steve Reed did not rule out stripping Mandelson of his peerage but said that there was a need to be clear on “exactly what happened”.
A photo of Lord Mandelson (left) and paedophile financier Jeffrey Epstein (right) and a birthday cake, released in the December tranche of Epstein files (Photo: US Department of Justice/PA Wire)Mandelson must “explain whether or not that money was properly declared, and if not, then he will need to account for that,” Reed said.
The Epstein files also included photos of a man who appears to be Mandelson wearing just his pants and a T-shirt, alongside a woman whose face has been anonymised.
The Daily Telegraph also reported that emails from 2009, when Mandelson was business secretary, suggested he had been lobbying ministers to change its policy on bankers’ bonuses following requests from Epstein.
Billionaire Epstein pleaded guilty to charges of soliciting prostitution, and soliciting prostitution from someone under the age of 18 in June 2008.
Being pictured or mentioned in the Epstein files is not an indicator of any wrongdoing.
‘Let’s have some honesty,’ says minister
Reed urged Mandelson to share any evidence he may have of Epstein’s behaviour, in order to bring justice for his victims.
“I feel the same way as other people will feel when they see that picture of Peter Mandelson in his underpants. He’s telling us he doesn’t know anything about what’s gone on. Let’s have some honesty,” the minister said.
In its election manifesto the Labour Party said it would “ensure all peers meet the high standards the public expect of them” and promised to “strengthen the circumstances in which disgraced members can be removed”.
A Downing Street source said it is committed to bringing forward these changes, as part of wider reform of the House of Lords, but the Government has not said when the tougher rules for peers will be introduced.
Labour MP Andy McDonald, who has not shied away from criticising the Government, said Mandelson should be “expelled from the party” entirely.
McDonald, the MP for Middlesbrough and Thornaby East, told The i Paper: “Keir Starmer has got to put distance between himself and the Labour Party and Peter Mandelson. It’s now urgent. We need to see action.”
He said party membership had been revoked for people “who’ve liked tweets or fallen foul of the wrath of the leadership” and argued Mandelson was “a minister of the crown who is ostensibly in conversations with the most notorious sex trafficker in history about changing UK fiscal policy”.
“That is just beyond outrageous, and there’s got to be a commensurate and proportionate response from this Labour government,” he said.
John McDonnell, the MP for Hayes and Harlington who questioned Starmer’s political judgement when he appointed Mandelson as US ambassador in 2024, claimed that he had “warned” the PM “but he never listened”.
Meanwhile, Tory leader Kemi Badenoch challenged Starmer to “suspend Mandelson’s membership of the Labour Party and launch an immediate investigation”.
Mandelson has ‘no recollection of payments’
Mandelson has questioned the authenticity of the documents purporting to show Epstein sent three payments to him.
One bank statement suggests a a payment of 25,000 US dollars was sent to the account of Reinaldo Avila da Silva, now Lord Mandelson’s husband, on 14 May 2003 with “Peter Mandelson” listed as the beneficiary.
Two further statements from May and June 2004 suggest 25,000 dollar payments were made to Mandelson, one to an account which appears in his name, and another in which he is listed as a beneficiary.
In a statement Mandelson said: “I have no record and no recollection of receiving these sums and do not know if the documents are authentic.
“I can say clearly, though, I regret ever having known Epstein. I was wrong to believe Epstein and swallow his lies following his conviction and to continue my association with him afterwards. I deeply regret doing so and apologise unequivocally to the women and girls who suffered”.
It comes as Government ministers urged Andrew Mountbatten-Windsor to give evidence before US congress about his links to Epstein. Starmer told reporters over the weekend the former duke “should be prepared” to testify.
Reed dodged questions about whether the UK Government would comply with an extradition request from the US for Andrew but said: “Andrew Mountbatten-Windsor clearly has insight into what was going on, and he should testify, because the victims deserve and need him, and anybody else who may have witnessed things, to do that.”
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