The United Kingdom government has been plunged into a major political crisis following the release of new files and communications linking veteran Labour politician Lord Peter Mandelson with the late financier and convicted sex offender Jeffrey Epstein, triggering resignations, police investigations and intense scrutiny of Prime Minister Sir Keir Starmer’s judgment.

The latest tranche of documents, released by the United States Department of Justice and shared with UK authorities, include emails and financial records showing sustained contact between Mandelson and Epstein over many years, raising questions about the nature of their relationship and whether confidential government information was disclosed.

Among the revelations are emails from as far back as the late two thousand-noughts suggesting that Mandelson, who served as business secretary under Gordon Brown and later as ambassador to Washington, forwarded sensitive government material to Epstein during the global financial crisis period.

Some records indicate Epstein received advanced insight into policy discussions on tax and bailout plans, while bank documents reproduced in the files suggest payments from Epstein to accounts linked to Mandelson and his partner, though Mandelson has said he does not recall such transactions.

The Metropolitan Police confirmed it has launched a criminal investigation into alleged misconduct in public office based on referrals from Westminster and other political groups.

In the face of mounting pressure, Mandelson resigned from both the House of Lords and the Labour Party, acknowledging the controversy but rejecting wrongdoing.

His departure from public life marks a dramatic fall for one of Britain’s most enduring political figures, whose career had long weathered previous controversies.

Prime Minister Starmer, who appointed Mandelson as the UK’s ambassador to the United States in late two thousand twenty-four before dismissing him amid earlier Epstein revelations in two thousand twenty-five, has apologised to survivors of Epstein’s crimes for placing confidence in Mandelson’s assurances, saying he was “lied to” about the depth of the relationship and misled during the vetting process.

The political fallout has been swift.

Opposition parties and some lawmakers within Starmer’s own ranks have demanded full disclosure of all communications, vetting documents and correspondence relating to Mandelson’s appointment and past government roles.

The government has agreed to comply with parliamentary demands for wider transparency, though officials caution that material genuinely affecting national security will be withheld.

Critics argue that the scandal highlights systemic weaknesses in the vetting of senior appointments and gaps in safeguarding sensitive information.

The controversy has also prompted commercial repercussions: Barclays cut ties with Global Counsel, a lobbying firm co-founded by Mandelson, as clients increasingly pressure the firm over its founder’s ongoing stake despite his resignation.

Political analysts suggest the crisis could significantly damage Starmer’s leadership standing and reshape debates about ethics, influence and accountability at the highest levels of British public life.

With police investigations underway and parliamentary probes intensifying, the full repercussions of the Epstein-Mandelson files continue to unfold.