Sir Keir Starmer was warned Peter Mandelson was “particularly close” with Jeffrey Epstein and there was a “general reputational risk” before he appointed him as ambassador to the US.

The government on Wednesday released the first tranche of correspondence and documents relating to Lord Mandelson’s appointment and his sacking last year, due to his relationship with the paedophile financier, after the Conservatives demanded it did so.

Politics latest: Starmer warned Mandelson was a ‘reputational risk’

They reveal the prime minister was informed as part of a “due diligence” report that Lord Mandelson appeared to “maintain a particularly close relationship” with Epstein from 2002 and continuing through the 2000s – including after Epstein was first convicted of procuring an underage girl in 2008.

It says Lord Mandelson stayed in Epstein’s house while he was in jail in 2009.

Mandelson has previously denied any wrongdoing in relation to his relationship with Epstein.

Sir Keir was also informed Lord Mandelson agreed to be a “founding citizen” in 2014 of an ocean conservation group founded by Ghislaine Maxwell, Epstein’s girlfriend, and funded by Epstein.

It flagged that all these connections could be a “general reputational risk”, and says Jonathan Powell, the national security adviser, was particularly cautious about Lord Mandelson’s appointment.

But Sir Keir’s then-chief of staff Morgan McSweeney said he was “satisfied” with Lord Mandelson’s responses to questions about his relationship with Epstein.

Warning against political appointment

The prime minister was also warned against making a political appointment, rather than a diplomatic one, which is rare, and was told: “If anything goes wrong, you could be more exposed as the individual is more connected to you personally.”

But then-foreign secretary David Lammy agreed on a political appointment, and on Lord Mandelson, as did Sir Keir.

Mandelson wanted £500,000 pay-off

The documents reveal Lord Mandelson asked for a settlement payment of £574,201 but he agreed to £75,000 “with minimal fuss”.

He was sacked on 11 September but remained on full pay until 16 October, nearly a month after he finally left the US on 24 September.

A letter from Lord Mandelson to the Foreign Office revealed his exit from the US was delayed due to obtaining a veterinary certificate for his dog, Jock.

He said his main concern was arriving in the UK “with the maximum dignity and minimum media intrusion” because he was still a crown/civil servant “and expect to be treated as such”.

Starmer was told about depth of relationship in September 2025

The documents also detailed what Sir Keir was told when emails revealing the extent of Mandelson’s connection to Epstein were leaked in September last year – seven months after his appointment – which resulted in his sacking.

In a letter recording a meeting of the prime minister, Deputy Prime Minister David Lammy, Foreign Secretary Yvette Cooper, Number 10 staff, the chief whip and top Foreign Office official Sir Olly Robbins, it reveals Sir Keir was concerned about the “judgements and views” expressed in the leaked emails.

Sir Keir said the emails “did not give him confidence that there were not further revelations to come and the serious discomfort” of Labour MPs.

The emails revealed a “depth and extent of a relationship with Epstein which he had not been aware of previously when he made the decision to appoint Mandelson”, it says.

It was on this basis Sir Keir “proposed to ask Mandelson to resign”, the letter says.

Mistake to appoint Mandelson

As the documents were released, Chief Secretary to the Prime Minister, Darren Jones, told MPs Sir Keir has already acknowledged it was a “mistake” to appoint Lord Mandelson and has apologised “not least for believing Peter Mandelson’s lies”.

He said some documents were not released as they are part of the police investigation into Lord Mandelson, but said when they are “the House will be able to see Peter Mandelson’s answers for themselves, which the prime minister regrets believing”.

“Peter Mandelson should never have been afforded the privilege of representing this country,” he added.

‘Starmer lied’

Conservative leader Kemi Badenoch said the files show Sir Keir “lied repeatedly about what he knew when, and how” – and said it is a resigning matter.

She said the vetting shows the PM should never have appointed Lord Mandelson, and he is “not in power, he is held hostage by his backbenchers”.