LONDON, UK— Former cabinet minister Lord Peter Mandelson has resigned from the Labour Party, saying he does not want to “cause further embarrassment” following renewed scrutiny over his past association with the late convicted paedophile Jeffrey Epstein.
Lord Mandelson’s decision comes after his name appeared in a newly released tranche of US Department of Justice documents linked to Epstein, which include bank records suggesting three payments totalling $75,000 (£55,000) were made in 2003 and 2004 and referenced him as a beneficiary.
In a letter to Labour’s general secretary, Mandelson said he felt “regretful and sorry” about being drawn back into the controversy and announced he was stepping down from party membership while the claims are examined.
“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,” he wrote. “While doing this I do not wish to cause further embarrassment to the Labour Party.”
He reiterated an apology to Epstein’s victims, adding that their voices “should have been heard long before now”, and said his decision was taken in what he believed were Labour’s best interests.
The newly released files, first reported by the Financial Times, appear to show three separate $25,000 transactions from Epstein’s JP Morgan accounts.
Two of the payments, made in June 2004, list “Peter Mandelson” as beneficiary, while an earlier payment in May 2003 references an account linked to Mandelson’s then partner. It remains unclear whether the funds were ever received.
Mandelson has said he does not know whether the documents are authentic and maintains he has no recollection of any such payments.
He has previously expressed regret for continuing his association with Epstein after the financier’s 2008 conviction.
Political reaction has been swift. Labour MP Gordon McKee said Epstein’s victims would be “rightly outraged” by the revelations but added that Mandelson had done the “right thing” by resigning from the party.
The Conservatives, however, criticised Prime Minister Sir Keir Starmer’s handling of the issue.
A party spokesperson accused him of allowing Mandelson to resign rather than expelling him, while Conservative leader Kemi Badenoch called for Mandelson’s suspension and a formal investigation into his links to Epstein.
Housing Secretary Steve Reed said the government was not aware of Mandelson’s alleged financial links to Epstein when questioned earlier on Sunday.
The files also include emails showing Mandelson remained in contact with Epstein after his conviction and appeared to lobby on policy issues following requests from the disgraced financier, including efforts in 2009 to amend a proposed tax on bankers’ bonuses.
Mandelson has said his position at the time reflected the views of the financial sector broadly, not those of any single individual.
Images of Mandelson, including one showing him standing next to a woman whose face is not visible, were also uncovered in the document release.
Mandelson said he could not identify the circumstances or location of the photograph. Being named or pictured in the files is not, in itself, an indication of wrongdoing.
Epstein, who pleaded guilty in 2008 to soliciting underage girls, died in a New York jail cell in 2019 while awaiting trial on sex trafficking charges.
The documents were released as part of millions of Epstein-related records made public under a US law passed last year, marking the largest disclosure to date.
