Lord Mandelson Resigns Amid Criminal Investigation Following New Epstein Document Revelations

The British political landscape is currently reeling from a seismic scandal triggered by the latest release of documents linked to the late convicted sex offender Jeffrey Epstein. Prime Minister Sir Keir Starmer has taken a decisive stance against Lord Peter Mandelson, publicly stating that the peer has "let his country down." In a move to shield the Labour Party from further reputational damage, it was confirmed on February 3, 2026, that Mandelson has officially resigned his party membership to prevent any additional embarrassment to the political organization.

The core of the controversy involves newly unsealed materials from a United States Department of Justice investigation. These records reportedly indicate that Mandelson provided Epstein with highly sensitive, market-moving government data during his tenure as Business Secretary. Specifically, email correspondence suggests that Mandelson shared confidential details regarding an "asset sale plan" and the imminent rollout of a Eurozone rescue package in May 2010, well before its official public disclosure.

During the height of the Eurozone financial crisis in May 2010, Mandelson allegedly informed Epstein that a "500 billion euro bailout" was nearly finalized. This communication occurred just hours before European governments made the formal announcement of the €500 billion stabilization fund. Such a breach of confidentiality during a global economic emergency has drawn sharp criticism from former colleagues and current officials alike, highlighting the gravity of the alleged information leak.

Furthermore, the documents appear to track financial transactions where Epstein transferred a total of $75,000 to accounts associated with Mandelson during 2003 and 2004. While the Lord claims to have no recollection of these specific payments, other ties have surfaced, including a 2009 incident where Epstein funded osteopathy treatments for Mandelson’s husband. Mandelson later characterized this as a "clear lapse in our collective judgment," following a previous scandal in September 2025 that saw him removed from his post as the British Ambassador to the United States by Starmer.

Downing Street is now reportedly preparing a legislative path to strip Mandelson of his peerage, a rare and complex procedure that necessitates an Act of Parliament. Sir Keir Starmer has expressed deep concern that the full extent of the information has not yet been brought to light. Removing a peerage is a historical rarity, with the last precedent occurring in 1919 under the Titles Deprivation Act 1917, which targeted those who aided enemies during the First World War. Consequently, the Cabinet Office has formally referred an internal assessment of the alleged misconduct to the Metropolitan Police.

Commander Ella Marriott of the Metropolitan Police confirmed that the force has initiated a criminal investigation into a 72-year-old man, a former government official, on suspicion of misconduct in public office. This investigation follows the publication of the US Department of Justice files and a formal referral from the UK government. The probe aims to determine the extent of the legal breaches and the impact of the sensitive data sharing on national interests.

Former Prime Minister Gordon Brown has weighed in on the situation, describing the alleged leaks as an "unforgivable and unpatriotic act" occurring at a time when the nation was battling a global financial crisis. While Mandelson announced his departure from the House of Lords on February 4, 2026, he will retain his title of Lord unless specific legislation is passed by Parliament to annul it. The ongoing investigation and potential legislative action mark a significant moment in British political accountability.