Lord Mandelson’s fall from grace – and what awaits him in UK
Peter Mandelson’s career has been defined by comebacks, but his connection to Epstein may mark the end of the road for the Labour grandee
Lord Peter Mandelson resigned from the Labour Party, saying he wanted to avoid causing it “further embarrassment” after new disclosures about his association with the convicted sex offender Jeffrey Epstein.
The peer, who lost his post as UK ambassador to the United States last year because of his links to Epstein, is named in documents released on Friday by the US Department of Justice relating to the disgraced financier.
Sir Keir Starmer rallied around his man in Washington for days at the time, praising the job the UK’s ambassador had done penetrating Donald Trump’s inner circles. But the prime minister was forced to change course last year, dismissing Lord Mandelson with immediate effect.
On Sunday, Lord Mandelson said he wrote to the party’s general secretary, Hollie Ridley, to inform her that he was ending his Labour membership.
In the letter, he said: “I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.
“Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me.
“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.
“I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.
“I have dedicated my life to the values and success of the Labour Party and in taking my decision, I believe I am acting in its best interests.”
Documents from the release appeared to show Lord Mandelson suggesting to Epstein in December 2009 he was “trying hard” to change policy on bankers’ bonuses not long after Gordon Brown’s government clamped down on them in the wake of the financial crisis. He told the BBC on Sunday: “My conversations in government at the time reflected the views of the sector as a whole, not a single individual.”
One bank statement showed a payment of $25,000 made to the account of Reinaldo Avila da Silva, who was at the time Lord Mandelson’s partner and is now his husband. The statement appeared to describe “Peter Mandelson” as the beneficiary of the payment, as the allocation “BEN” appears next to his name. Lord Mandelson said he had no recollection of receiving such sums and questioned whether the records were genuine.
Following his departure from the party, a Labour spokesperson said: “The Labour Party takes all complaints seriously and they are investigated in line with our rules and procedures.”
The Conservatives have called for an independent inquiry into Lord Mandelson’s appointment as ambassador to Washington. A party spokesperson said: “Lord Mandelson is completely disgraced. Yet Keir Starmer lacked the backbone to take action, allowing Mandelson to resign from the Labour Party instead of kicking him out.
“Keir Starmer and his chief of staff appointed Mandelson ambassador despite his relationship with Epstein, and then refused to act even as the mountain of evidence against him grew.
“Given the prime minister’s appalling lack of judgment and the participation of his Downing Street operation, there must now be a full and thorough independent investigation.”
The resignation marks what is almost certainly the end of a career that had previously been defined by remarkable comebacks.
But, despite the humiliation, Lord Mandelson will return to a life of luxury in the UK and continue to wield significant influence in British business and politics.
Last year, before heading to the US, Lord Mandelson was living in a luxurious farmhouse in the Pewsey Vale in Wiltshire. During the pandemic, he wrote about the “cosy country life” he was enjoying on the farm.
He is the part-owner of Global Counsel, a powerful lobbying firm he co-founded, and remains president of its international advisory board.
He may struggle to secure a place back in the Labour fold, but Lord Mandelson will likely take up a position back at the heart of the firm he established.
In the past, Global Counsel has advised giant multinational firms such as the fast fashion retailer Shein and energy behemoth BP. As well as the influential business position, Lord Mandelson has the more ceremonial High Steward of Hull title, though the council will try to strip him of it in the coming weeks.
But while he returns to a lavish life in Britain, it won’t be a touch on the grandeur of life in the early-1900s residence built for Britain’s ambassador in Washington.
The property, one of the most luxurious residences in the US capital, recently underwent a near-£120m renovation, with artworks including an Andy Warhol painting of Queen Elizabeth II adorning the walls.
It has previously welcomed royalty from Prince Charles and Princess Diana to pop royalty like The Beatles.
Guests who have been hosted in the embassy since Lord Mandelson moved in include much of President Trump’s inner circle and the great and good of American business.
Historian Anthony Seldon has described the Washington residence as “the finest embassy residence anywhere in the world”.
Symbolically the residence boasts a statue of Sir Winston Churchill with one foot planted on British soil and the other on American soil. Lord Mandelson will soon find both of his own feet back on British soil.
No Labour leader will bring the tarnished grandee back into the fold after the extent of his relations with Epstein have been revealed. And he has said himself at one point that further “very embarrassing” information will come to light in the future.
His career has been one of many comebacks, but Thursday’s sacking seems a fall too far for Lord Mandelson to recover from.
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