Peter Mandelson

Parliamentary expenses

During the 2009 expenses scandal, The Daily Telegraph raised questions about the timing of Mandelson's second home allowance claim, dating from 2004, saying, "Lord Mandelson billed the taxpayer for almost £3,000 of work on his constituency home in Hartlepool less than a week after announcing his decision to stand down as an MP." Mandelson said in a statement, "The work done was necessary maintenance. All claims made were reasonable and submitted consistent with parliamentary rules."^[34]

Undisclosed home loan scandal

Mandelson was a friend of Labour MP and aerospace CEO Geoffrey Robinson since 1979 when he was a researcher to Labour MP Albert Booth.^[42] Mandelson had previously been financially supported by Robinson while working with trade unions, and had remained in touch with him intermittently.^[42] Robinson stated that in 1994 Mandelson wrote to Brown, offering his services and stating to Brown he should not seek leadership of what would become New Labour, and in so doing gravitated towards Tony Blair, causing a rift (also referred to as a "feud" by The Guardian^[43]) between Brown and Mandelson.^[42]

Mandelson bought a home in an exclusive area of Notting Hill in October 1996^[42] partly with an interest-free unsecured personal loan of £373,000 (£753,144 adjusted for inflation in 2025) from Robinson, whose business dealings were later subject to an inquiry by Mandelson's department.^[44] The total value of the home was £475,000 (£959,097 adjusted for inflation in 2025).^[43]

In 1996, Mandelson was at a dinner at Robinson's flat, where he discussed difficulties with calls from Tony Blair at early hours, and also in a cri de coeur^[42] complained to Robinson that he was miserable in his small flat in Wilmington Square, and about his financial circumstances due to his "modest" salary in New Labour, complaining that he did not have "a flat in which he could relax and entertain his friends".^[42] Following this, Robinson queried his intentions:

"I asked what he had in mind. He said "Oh there is a place in Notting Hill I would really like, but it's too expensive and there is no-one to help me!" At this point I said that financially I was in a good position and that I might be able to assist if he wanted me to. ... My interpretation of his remark was and remains that he was looking for a loan. I would not say that is why he had come to dinner. But, to judge from the alacrity with which he responded, I do not think I misinterpreted what he said."^[42]

Mandelson rang Robinson at 9 am the next morning and asked if [Robinson] would help him buy a house, to which Robinson agreed, saying he would give the loan to Mandelson.^[42] Robinson was known for being linked to disgraced former businessman Robert Maxwell, had offshore funds which posed problems during his time in Labour, and was also alleged to have offered similar loans to other members of New Labour's cabinet.^[45]

Robinson stated that the loan was offered with no strings attached, with Mandelson in a hurry to buy a property. Robinson said that Mandelson settled on a four-storey house in Northumberland Place in Notting Hill, also stating that "[Mandelson] was quite undaunted at the prospect of so large a burden of debt." as Mandelson had stated he would pay it back with money from an inheritance, a salary he would command in the private sector which could pay the interest and repay the capital, and that also his eventual publication of memoirs would cover the cost, and for that reason Robinson saw Mandelson as "good for the money".^[42]

The scandal further elaborated when Mandelson became Secretary of State for Trade and Industry on 27 July 1998 and was responsible for the Department of Trade and Industry's investigation into Robert Maxwell's embezzlement of pension funds, but had failed to recuse himself of the position due to conflict of interests.^[46] Robinson commented in his memoir that he was surprised that Mandelson did not declare a conflict of interest due to links between Robinson and Maxwell and stated he should have faced up to it, and in trying to escape from the scandal, blamed him.^[42] Robinson had dealings with Maxwell's engineering companies but was not alleged to be involved in any of the embezzlement of pension funds.^[46] Robinson stated there were rumours of documents being stolen and efforts to retrieve them, but that ultimately he did not know who released the details of their loan.^[42]

The article was published in The Guardian on 22 December 1998, followed by Mandelson going on a press tour immediately after on 22 December to try to salvage his position and minimise the damage done by the Guardian article, which ultimately was fruitless. On the morning of 23 December, Gordon Brown called Robinson and stated the bottom line was that Mandelson was to resign, and that Tony Blair demanded Robinson resign as well. Blair later called Robinson, according to Robinson, stating that he was very disappointed the press saw a scandal in what he saw as a "private arrangement".^[42] Mandelson had not declared the loan in the Register of Members' Interests, and had kept the loan from Blair for two years. Mandelson resigned on 23 December 1998, stating in a letter to Blair that "I am sorry about this situation. But we came to power promising to uphold the highest possible standards in public life. We have not just to do so, but we must be seen to do so. Therefore with huge regret I wish to resign. I will always be a loyal Labour man and I am not prepared to see the party and the government suffer the kind of attack this issue has provoked. You can be assured, of course, of my continuing friendship and total loyalty."^[44][47]

Mandelson had also not declared the loan to his lender (the Britannia Building Society) although they decided not to take any action, with the CEO stating: "I am satisfied that the information given to us at the time of the mortgage application was accurate."^[48] Mandelson initially thought he could weather the press storm, but had to resign when it became clear that Blair thought nothing else would clear the air.^[49] In October 2000, it was reported that Robinson had "accused Peter Mandelson of lying to the Commons about the home loan affair that cost both of them their government jobs."^[50][51] Robinson stated in his 2000 memoir that Mandelson sold the house "for a handsome profit" and repaid the loan.^[42]

Allegations of corruption and conflicts of interest

The Epstein files indicated that Jeffrey Epstein made payments totaling approximately £55,000 to Mandelson or his partner between 2003 and 2004,^[65] and also covered educational fees for Mandelson's husband, Reinaldo Avila da Silva. Emails within the files suggested that Mandelson shared sensitive UK government information with Epstein during the aftermath of the 2008 financial crisis, including early notice of a €500 billion EU bank bailout and lobbying efforts regarding a proposed 50% "super tax" on bankers' bonuses. The revelations prompted reactions from former Prime Minister Gordon Brown, who had appointed Mandelson to ministerial positions and the House of Lords, expressing regret over the appointments,^[66] and providing evidence to the Metropolitan Police for further inquiry.^[67] Amid growing public and political scrutiny, Mandelson resigned from the Labour Party and stepped down from the House of Lords in early February 2026, while a criminal investigation into potential misconduct in public office was started,^[68] following which he was arrested.^[69]

On 22 April 2005, The Times reported that Mandelson had spent the previous New Year's Eve on the yacht of Paul Allen, the co-founder of Microsoft, a company that was at the centre of a major EU investigation.^[70] In 2006, The Daily Mail reported that Mandelson had received a free cruise on a yacht from Diego Della Valle, a controversial Italian mogul, raising questions as Della Valle's businesses (such as luxury shoe brand Tod's) benefited from tariffs imposed shortly thereafter by Mandelson as EU Trade Commissioner on Chinese shoes.^[71][72] In October 2008, Mandelson was the subject of much press speculation when it was reported that British-born Canadian financier Nathaniel Rothschild, 5th Baron Rothschild and the Russian oligarch Oleg Deripaska had met Mandelson when staying on a yacht moored near Corfu,^[73] in order to attend a party held by Rothschild.^[74] After speculation that this might constitute a conflict of interest for Mandelson,^[75] Rothschild wrote a letter to The Times newspaper alleging that another guest was Conservative Shadow Chancellor of the Exchequer George Osborne, who, he said, illicitly tried to solicit a donation from the Russian for his party.^[76][77][78]

In October 2008, Mandelson was reported to have maintained private contact over several years with Oleg Deripaska, most recently on holiday in August 2008 on Deripaska's yacht at Taverna Agni on the Greek island of Corfu.^[79] News of the contacts sparked criticism because, as European Union Trade Commissioner, Mandelson had been responsible for two decisions to cut aluminium tariffs that had benefited Deripaska's United Company Rusal.^[80] Mandelson denied that there had been a conflict of interest and said that he had never discussed aluminium tariffs with Deripaska.^[81] On 26 October 2008 the Shadow Foreign Secretary William Hague said the "whole country" wanted "transparency" about Mandelson's previous meetings with Deripaska. In response, Prime Minister Gordon Brown said Mandelson's dealings with Deripaska had been "found to be above board".^[82] Mandelson said that meeting business figures from "across the range" in emerging economies was part of his brief as EU Trade Commissioner.^[83] On 29 October 2008, while Mandelson was on a ministerial visit to Moscow,^[84] it was alleged in the British press that Valery Pechenkin, the head of security at Deripaska's company Basic Element, had organised a swift entry visa for Mandelson when he turned up in Moscow to visit Deripaska in 2005.^[85]

Alleged conflict of interest around pension

As a former EU Commissioner, Mandelson became entitled to a £31,000 pension upon reaching the age of 65. It was reported in 2009, after Mandelson had returned to the British government, that his pension was contingent on a "duty of loyalty to the Communities", which also applied after his term in office.^[86] The TaxPayers' Alliance demanded that he should declare this a conflict of interest and either relinquish his EU payments or resign as a minister. Mandelson did not agree that he had a conflict of interest.^[86] The website Full Fact reported in 2019 that the claim was incorrect, stating that while there are rules governing the conduct of current and former EU staff members, which can lead to pensions sanctions, the European Commission had informed them that it would be "probably impossible" for such people to lose their pension for criticising the EU or supporting Brexit. Full Fact also pointed out that there had been multiple cases of current and former commissioners criticising the EU.^[87]

Advisory, lobbying and directorships

In November 2010, Mandelson and Benjamin Wegg-Prosser founded Global Counsel, a London-based lobbying firm with the financial support of WPP, the advertising giant.^[110][111] The firm provides advice for corporate strategists and senior management worldwide. Lord Mandelson has been criticised for not revealing his clientele.^[112] As a corporate lobbyist, he personally helped clients such as Shein, Shell, Palantir, Alibaba, TikTok, and the UK private water industry obtain meetings with ministers and senior officials.^{[113][114][115]}

In May 2012, Mandelson confirmed that he was advising Asia Pulp & Paper (APP) in selling timber products to Europe. In that year, APP was accused of illegal logging in Indonesia and damaging the habitats of rare animals such as the Sumatran tiger. At least 67 companies worldwide, such as Tesco and Kraft Foods since 2004 and Danone since 2012, have boycotted APP.^{[116][117][118]} In April 2014, it was reported that Mandelson had strong ties to Russian conglomerate Sistema.^[119] Mandelson was criticised for being a member of the House of Lords while running a lobbying firm.^[120] In 2021, he was the only Labour peer to vote against an amendment denouncing the alleged human right violation in Xinjiang.^[120] Mandelson served as a senior adviser to the investment bank Lazard from January 2011 until March 2022.^{[121][122][123]} In 2013, Mandelson also joined the Board of Trustees of Deutsche Bank's Alfred Herrhausen Gesellschaft.^[124]

Political activities and views

After Labour lost the 2010 general election and the Conservative–Liberal Democrat coalition was formed, Mandelson's memoirs, The Third Man: Life at the Heart of New Labour, were published in July 2010.^[125][126] The memoirs were criticised by Labour leadership contenders Ed and David Miliband, and by Andy Burnham.^[127] During this time, Mandelson was appointed president of the international think tank Policy Network.^[128] In 1999, 2008, 2009, 2011, 2012, 2013, and 2014, Mandelson was an invited guest of the Bilderberg Group and attended the annual conferences.^[129][130] In May 2011, there was speculation that Mandelson had been approached by China to be a candidate for the leadership of the International Monetary Fund, even though he had not served as a finance minister or headed a central bank.^[131][132] It was then speculated in March 2012 that Mandelson's name might be put forward to succeed Pascal Lamy as Director-General of the World Trade Organization, backed by David Cameron.^[133][134] In June 2013, writing for the Progress website, Mandelson warned Labour it risked harming its election chances if affiliated trade unions continued to "manipulate parliamentary selections" as was alleged in the 2013 Labour Party Falkirk candidate selection controversy.^[135][136]

After the 2015 Labour leadership election resulted in Jeremy Corbyn becoming the party leader, Mandelson stated that he believed that Labour was now unelectable, but advised party members unhappy with the situation to wait for Corbyn to demonstrate this before working to replace him.^[137] He wished for an early general election to force Corbyn out.^[138] In February 2017, he said Corbyn had "no idea in the 21st century how to conduct himself as a leader of a party putting itself forward in a democratic election" and "I work every single day to bring forward the end of [Corbyn's] tenure in office".^[139] After the results of the 2017 general election became known, Mandelson conceded that Corbyn's election campaign was "very sure-footed" and the result, in which Labour gained seats and denied the Conservatives a majority, unexpected.^[140] "I was wrong" about Corbyn, he told BBC News. "I am very surprised, an earthquake has happened in British politics and I did not foresee it", although he doubted Corbyn's ability to gain a Commons majority.^[141] Two years later, at the 2019 general election, Labour suffered their worst defeat since the 1930s.^[142] Mandelson described the result as "not undeserved", arguing that Corbyn's leadership was one of the main reasons for Labour's defeat.^[143]

During the 2016 EU referendum, Mandelson sat on the board of Britain Stronger in Europe, the official "Remain" campaign, which was unsuccessful.^[144] Following the Brexit referendum, Mandelson was an outspoken advocate for a second referendum.^[145] After Roberto Azevêdo announced he would step down as Director-General of the World Trade Organization (WTO) in September 2020, Mandelson declared an interest in succeeding him. He proceeded to lobby governments around the world for the role,^[146] arguing that the WTO had "reached a fork in the road" and had to be "picked up and put back on its feet".^[147] Mandelson, an opponent of Brexit, was overlooked in favour of the Conservative Liam Fox:^[148] his prospective candidacy ceased when Fox secured the UK Government's nomination.^[149]

After the 2020 Labour leadership election resulted in Keir Starmer becoming the party leader, it was reported the following year that Mandelson had been advising Starmer on moving the party beyond Corbyn's leadership and broadening its electoral appeal.^[150] In 2023, Mandelson was one of the regular guests of the weekly podcast How To Win An Election from The Times, presented by Matt Chorley and alongside Polly Mackenzie and Danny Finkelstein.^[151] He was described as having a "significant influence" on Starmer's office as a "core part" of his political network, and was an adviser to Starmer for several years before Labour's 2024 general election victory. In the lead-up to the election in June 2024, Mandelson warned against public overconfidence in a Labour victory, echoing a strategy used by Blair before the 1997 election. Appearing on the BBC, he stated, "I don't believe the polls for one moment". Mandelson also publicly campaigned for Labour by reassuring voters that the party had changed under Starmer and was a "safe" option for government after years of Conservative rule. Speaking before the election, he correctly predicted a public appetite for change that would lead to a Labour victory, similar to the major political shifts seen in 1979 and 1997.^[152][153]

Ambassadorship to the United States

In December 2024, Mandelson was appointed HM Ambassador to the United States by Starmer, to replace Karen Pierce who was rotated out of her post as the British ambassador to the US and appointed as the Prime Minister's Special Envoy to the Western Balkans.^{[154][155][156]} Appointed shortly before Donald Trump's return to the White House in January 2025, Mandelson was tasked with managing the crucial UK–US "special relationship". He worked to build connections within the new administration, including meetings with Trump himself. Mandelson's role involved strengthening the historic alliance between the two nations, particularly regarding economic growth and security.^[157]

As a veteran on trade issues, Mandelson's appointment was aimed at helping the UK secure trade opportunities with the US. He assumed the ambassadorship on 10 February 2025, following the presidential transition.^[158] Previously opposed to Trump and describing him as "little short of a white nationalist and racist",^[1] as "reckless and a danger to the world", and likening him to a bully,^[159] Mandelson revised his opinion, publicly asserting his respect for Trump, according to the will of the people.^[160] Trump appeared to enjoy a warm relationship with Mandelson, praising him during an Oval Office meeting in May 2025. In December 2024, a Trump campaign adviser had publicly referred to Mandelson as an "absolute moron".^[159]

During his short tenure as ambassador, Mandelson focused on promoting trade and fostering relationships with the US government during Trump's second presidency. Mandelson played a significant role in helping to formulate the details of a trade deal between the two countries following Trump enacting a series of steep tariffs affecting nearly all goods imported into the country, which was praised as a key achievement of his ambassadorship.

Jeffrey Epstein scandal and dismissal

In September 2025, controversy arose in the United Kingdom regarding Mandelson's long-standing association with the American financier and sex offender Jeffrey Epstein, ultimately resulting in Mandelson's dismissal as British Ambassador to the United States. Their friendship, which had been publicly known about for some years, spanned at least from 2002 to 2011 and continued after Epstein's first conviction in 2008. Renewed scrutiny and public criticism followed the release of US court documents and a cache of private emails by the US House Oversight Committee.^[161]

The released documents detailed the depth and nature of Mandelson's relationship with Epstein, particularly after Epstein's 2008 conviction in Florida for soliciting prostitution from a minor. Among the most damaging disclosures were a 2003 entry in Epstein's birthday book, in which Mandelson described him as his "best pal", and emails from 2008 in which Mandelson wrote that he "thought the world of him", and encouraged him to "fight for early release" from his 18‑month sentence.^[162] It also emerged that Epstein had paid for Mandelson's travel in 2003 and that Mandelson had reportedly sought Epstein's assistance with a banking deal while serving as a UK Cabinet minister in 2010.^[163]

The revelations placed significant pressure on Starmer, who had appointed Mandelson as ambassador to the United States in late 2024 and had initially expressed full confidence in him. The government stated that the newly published emails provided "materially different" information about the extent of the relationship, particularly Mandelson's suggestion that Epstein's conviction had been wrongful.^[164] After Mandelson refused to resign, on 11 September 2025 Starmer dismissed him, describing the emails as "reprehensible" and saying that Mandelson's responses to official questions had been unsatisfactory.^[165][166] Mandelson expressed deep regret for the association and "profound sympathy" for Epstein's victims, stating that he had been "taken in" by a "charismatic criminal liar".^[167]

In a BBC interview in January 2026, Mandelson said he had never seen young women or girls at Epstein's properties and had been unaware of Epstein's sexual crimes. Asked whether he wished to apologise, he expressed sympathy for the victims' suffering but said he did not feel the need to apologise as he had neither known of the abuse nor been complicit in it. He stated that he understood why he had been dismissed and accepted the decision.^[168] Later in January 2026, a further release of documents relating to Epstein appeared to show that Mandelson and his then partner, Reinaldo da Silva, had received at least $75,000 in payments from Epstein.^[169] The documents also revealed that Mandelson, then serving as business secretary, had lobbied government ministers to amend policy on bankers' bonuses at Epstein's request.^[170] Mandelson resigned his membership of the Labour Party on 1 February 2026 due to his relationship with Epstein.^[171]

On 13 June 2009, Mandelson allegedly leaked to Epstein a high-level Downing Street document that proposed £20bn of asset sales and revealed Labour's tax policy plans. The memo was written on 13 June 2009 by Nick Butler, who was a special adviser to then British prime minister Gordon Brown from 2009 to 2010.^[172] Mandelson forwarded another email sent to Brown’s secret Downing Street email address by Shriti Vadera, Baroness Vadera.^[173] In December 2009 email from Mandelson suggested that JPMorgan Chase boss Jamie Dimon should "mildly threaten" the then-Chancellor of the Exchequer Alistair Darling over a bankers' bonus tax.^[174] The pressure was reportedly exerted through references to the role of US banks as buyers of UK gilts, as well as investment plans in London.^[175] On 31 March 2010, Mandelson allegedly forwarded confidential minutes of a meeting between the Chancellor of the Exchequer, Alistair Darling, and the Director of the US National Economic Council, Larry Summers, five minutes after he received them, which discussed new banking regulation and taxation that Summers wanted to see, in addition to discussion on how the US should engage with France and Germany.^[176] The following day, on 1 April 2010, Mandelson met Larry Summers, and forwarded the minutes of his meeting two minutes after he received them.^[176]

Documents released by the US Department of Justice show that Jeffrey Epstein acted as an intermediary to help UAE's DP World CEO Sultan Ahmed bin Sulayem lobby the UK government in 2009 for support regarding the £1.8 billion London Gateway port project. Epstein reportedly shared the personal email address of Peter Mandelson - who was then the UK Business Secretary - with bin Sulayem and advised him on how to push through a deal. Emails indicate Epstein told Mandelson to "be nice to Sultan" in October 2009. The lobbying effort was aimed at securing government loan guarantees for the DP World deep-water port project on the Thames in Essex. The project went ahead, and DP World currently runs the London Gateway port.^[177][178]

On 9 May 2010, Mandelson gave Epstein advance notice of a €500bn bailout from the EU to save the Euro.^[172][174] On 10 May 2010, Mandelson emailed Epstein saying "finally got him to go today", with Gordon Brown resigning the following day.^[179][180] Sir Mark Rowley, the head of the Metropolitan Police, said that the email represented a “potential criminal offence” and that the investigation would be conducted “without fear or favour”.^[181] In another email on 10 May 2010, Mandelson appeared to reveal to Epstein the existence of a secret underground tunnel between 10 Downing Street and the Ministry of Defence.^[180]

On 2 February 2026, Reform UK and the Scottish National Party reported Mandelson to the Metropolitan Police, calling on them to investigate the leaking of confidential Downing Street files, and whether he may have committed misconduct in public office, pertaining to his time in Cabinet.^[182] On 3 February 2026, the Cabinet Office referred material to the police which contained market sensitive information surrounding the 2008 financial crisis and official activities thereafter to stabilise the economy.^[174] On the same day he stepped down as a peer from the House of Lords, and the Metropolitan Police began a criminal investigation.^[183][184] On 6 February 2026, Benjamin Wegg-Prosser, CEO of Global Counsel the advisory firm established by Mandelson, resigned due to recent revelations about the firms links with Jeffrey Epstein;^[185] 13 days later, the 100-strong firm confirmed it was going into administration after clients severed relationships over Epstein.^[186] It was also reported that Mandelson lobbied the US government in March 2010, to water down proposed restrictions on US bank trading activities, on behalf of Epstein and Jes Staley.^[187][109]

On 18 February 2026, the European Commission asked the European Anti-Fraud Office (OLAF) to look into Mandelson's time as European Commissioner.^[188]

On 23 February 2026, Mandelson was arrested on suspicion of misconduct in public office by leaking confidential emails to Epstein while he was Business Secretary. He was questioned in custody and later released on bail pending further investigation.^{[189][190][191]} Scotland Yard had received information that he had been planning to fly to the British Virgin Islands, which he denied.^[192][193] On 6 March 2026 he had his bail conditions lifted and his passport returned, remaining under investigation.^[194] He was formally removed from the Privy Council on 10 March 2026.^[195]

Investigation

Metropolitan Police are seeking the cooperation of the US Department of Justice for the investigation into Mandelson. The communication between UK and US authorities is the first step before formal requests are made including Mutual legal assistance treaty or MLAT requests.^[196]