British Prime Minister Keir Starmer has issued an apology to victims of Jeffrey Epstein over his controversial decision to appoint former Labour minister Peter Mandelson as the UK’s ambassador to Washington, while also mounting a firm defence of his actions.
Starmer faces intense pressure, including from within his own Labour Party, after naming Mandelson to the high-profile diplomatic post in December 2024, despite the former minister’s previously known connections to the late U.S. financier and convicted sex offender Jeffrey Epstein.
The controversy escalated last week following the release of U.S. Justice Department files, which included emails suggesting that Mandelson shared sensitive government documents with Epstein.
The files also reportedly indicated that Epstein recorded payments to Mandelson or his then-partner, now husband.
“It had been publicly known for some time that Mandelson knew Epstein, but none of us knew the depth and the darkness of that relationship,” Starmer said during a speech in southern England, attempting to contextualise his decision.
Mandelson, who served as a government minister during Labour’s previous administration more than 15 years ago, resigned from the House of Lords on Tuesday amid the uproar. He is now under police investigation for alleged misconduct in office.
According to the Justice Department emails, in 2009 Mandelson sent Epstein a UK government memo on potential asset sales and tax changes, and in 2010 he allegedly provided advance notice of a €500-billion European Union bailout package during the bloc’s debt crisis.
The revelations have sparked alarm among UK officials and the public. Andrew Bailey, governor of the Bank of England, expressed shock on Thursday, noting that the leaks came at a time when officials were working around the clock to stave off economic fallout from the financial crisis. “I am shocked by what we’re hearing. How is it that we live in a society in which this happened?” he said.
Markets also reacted, with UK government borrowing costs rising amid growing uncertainty over Starmer’s political future.
Mandelson has not publicly addressed the allegations of document leaks or the reported payments and has ignored repeated requests for comment.
Starmer’s public apology to Epstein’s victims, paired with his resolute defence of the appointment, highlights the precarious position of the Prime Minister as he navigates what is shaping up to be one of the most serious political crises of his tenure.
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