Keir Starmer is facing a furious backlash today after Lord Mandelson finally quit Labour over his ties to Jeffrey Epstein.
The PM has been branded ‘weak’ as Labour MPs accused him of ignoring warnings when appointing the New Labour architect as US ambassador.
There are calls for his peerage to be stripped – even though he is already on a ‘leave of absence’ from Parliament and has indicated he will not return.
Meanwhile, there are reports the US House Oversight Committee is set to summon Lord Mandelson to testify on his links to the paedophile financier.
Lord Mandelson resigned his Labour membership last night after a huge tranche of documents released by the American administration last week raised a host of new questions. In a fresh humiliation, a photo emerged of him in his underwear chatting to a woman in a bathrobe.
In a letter to general secretary Hollie Ridley, 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.’
Lord Mandelson said: ‘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 appear to show Lord Mandelson suggesting to Epstein in 2009 that he would lobby the UK government over a levy on bankers’ bonuses.
An email dated December 15, 2009, which appears to be from Epstein, reads: ‘any real chance of making the tax only on the cash portion of the bankers bonus’.
The reply, apparently from Lord Mandelson, reads: ‘Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.’
The emails suggest the peer, then business secretary, was prepared to lobby the Government over the so-called ‘super tax’ introduced in early December 2009, by then-chancellor Alistair Darling, to clamp down on bank profits being used to pay large bonuses for bankers in the wake of the financial crisis.
Meanwhile, bank statements appear to show the peer received some $75,000 from Epstein between 2003 and 2004, when he was a Labour MP.
Lord Mandelson said he did not recall ever receiving the payments, and questioned their authenticity.
Touring broadcast studios for the government this morning, Education minister Olivia Bailey said she was ‘pleased’ Lord Mandelson had resigned from the Labour Party.
‘There were clearly questions that Peter Mandelson would need to answer. He’s taken this decision, it’s the right decision,’ she told Times Radio.
But asked whether he should remain a member of the House of Lords she said: ‘The reality of the removal of a peerage is a complicated one. You have to have been, I believe, sent to jail for over 12 months or an Act of Parliament needs to be passed…
‘He is not currently in the House of Lords and I do understand that he does not intend to return.’
MPs have been turning their fire on Sir Keir over his handling of the situation.
The PM was forced to sack Lord Mandelson from the key role of US ambassador last year after more revelations about Epstein.
Labour MP John McDonnell said: ‘I warned Keir Starmer on Mandelson but he never listened.’
After the latest allegations emerged, backbencher Andy McDonald said: ‘Yet another colossal misjudgment by Mandelson. He should be immediately expelled from the Party.’
One Labour MP told The Times: ‘It’s a shame he was not expelled.’
SNP MP Stephen Flynn said: ‘Starmer was too weak to remove him.’
A Labour spokeswoman said after the resignation: ‘The Labour Party takes all complaints seriously and they are investigated in line with our rules and procedures.’
The Conservatives called for a ‘full and thorough independent investigation’ into Lord Mandelson’s appointment as US ambassador, after his resignation from the Labour Party.
A Conservative Party spokesman 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.’
Lord Mandelson told the Daily Mail yesterday he had no record or recollection of receiving any payments, and questioned whether the documents were real.
‘I have no record and no recollection of receiving these sums and do not know if the documents are authentic,’ he said.
‘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.’
A source insisted the financial statements could not be taken at face value without supporting evidence, pointing to formatting errors.
They highlighted the suggestion Lord Mandelson had a US social security number, saying he did not, and argued it was not possible to pay dollar cheques directly into UK bank accounts. They urged JP Morgan to confirm whether the documents were real.
The source also stressed the US Department of Justice caveat that the release ‘may include fake or falsely submitted images, documents or videos’ and that ‘some of the documents contain untrue and sensationalist claims’.
