Stock Markets February 1, 2026

Peter Mandelson Leaves Labour Party Amid Fresh Epstein-Related Reports

Former cabinet minister and one-time UK ambassador steps down from party membership after new media reports linking him to Jeffrey Epstein

By Leila Farooq
Peter Mandelson Leaves Labour Party Amid Fresh Epstein-Related Reports

Peter Mandelson has resigned his membership of the Labour Party after recent media reports renewed focus on his past connections to Jeffrey Epstein. Mandelson, dismissed last year from his role as Britain’s ambassador to the United States, said in a letter that he did not want to cause “further embarrassment” to the party and that he would investigate allegations about financial payments that appeared in British reporting based on U.S. Justice Department files.

Key Points

  • Peter Mandelson has resigned his membership of the Labour Party after weekend media reports revisited his links to Jeffrey Epstein; he said he did not want to cause "further embarrassment" to the party.
  • Mandelson was dismissed last year from his role as Britain’s ambassador to the United States after documents released by U.S. lawmakers included a letter in which he called Epstein "my best pal." He denies allegations of payments and intends to investigate those claims.
  • The story touches political and diplomatic spheres, including impacts on party optics and ongoing calls for public figures, such as former Prince Andrew, to testify before U.S. congressional committees.

LONDON, Feb 1 - Peter Mandelson has notified the Labour Party that he is stepping down from membership after media reports over the weekend renewed attention to his ties with Jeffrey Epstein.

Mandelson, who was removed from his post as Britain’s ambassador to the United States last year after earlier disclosures about his relationship with Epstein, said he would not remain a member of the party while related issues are being examined.

In a letter to the Labour Party reported by the BBC and other news organisations, Mandelson wrote: "I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this." The same letter, according to those reports, added that allegations about financial payments to him by Epstein were false and that he intended to investigate those claims.

"While doing this I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party," the letter continued, as cited in media coverage.


Background and recent developments

Mandelson played a central role in Labour’s electoral strategy during the period when Tony Blair was prime minister in the 1990s. His return to public office culminated in his appointment as Britain’s envoy to Washington, from which he was dismissed last year after U.S. lawmakers released documents that included a letter in which he described Epstein as "my best pal." Those disclosures triggered political fallout and raised fresh scrutiny of his past associations.

The latest reporting that prompted his resignation as a party member was based on files released by the U.S. Justice Department and published in British media. Mandelson has denied the accuracy of reports alleging financial payments from Epstein and said he would look into them.


Earlier controversies

Mandelson’s political career has included earlier exits from government posts. In 1998 he resigned as trade minister amid questions about a loan he received from a fellow minister to purchase a house, a matter that raised conflict-of-interest concerns. He later returned to the cabinet, but resigned again in 2001 over allegations tied to a passport issue involving an Indian billionaire; he was subsequently cleared of acting improperly in that case.

He has also served as a European Union trade commissioner and remains on leave of absence as a member of the House of Lords.


Wider political ripple

Separately, Labour leader Keir Starmer said on Saturday that Britain’s former Prince Andrew should give evidence to a U.S. congressional committee, a call that followed fresh revelations about the prince’s links to Epstein. The two developments have kept attention on public figures whose past connections to Epstein are under renewed scrutiny.

For now, Mandelson’s step away from the Labour Party is framed by his stated wish to avoid causing additional embarrassment to the party while questions about his reported association with Epstein are investigated.

Risks

  • Uncertainty over alleged financial payments reported in media based on U.S. Justice Department files - potential reputational damage for Mandelson and by extension to the Labour Party; this primarily affects the political sector.
  • Potential for continued media and parliamentary scrutiny as related documents and testimonies surface, which could prolong political distraction and affect government focus; this impacts public affairs and diplomatic relations.
  • Calls for testimony by other public figures linked to Epstein could generate further revelations and sustained public attention, maintaining pressure on political institutions and media coverage sectors.

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