Mandelson should hand back payoff after sacking over Epstein link, minister says

Lord Peter Mandelson should hand back the payoff he received after being sacked as ambassador to the US, or give it to charity, a Cabinet minister has said.

The peer was sacked last year over his relationship with convicted child sex offender Jeffrey Epstein, but anger in Westminster has intensified after the latest release of documents which indicated he leaked market-sensitive information to his friend while he was a government minister.

Work and Pensions Secretary Pat McFadden suggested he should donate the taxpayer-funded handout, a sum which could run into the tens of thousands, “to a charity, perhaps one involving violence against women and girls”.

The scandal over Lord Mandelson’s appointment to the top diplomatic job has led to calls for Sir Keir Starmer to go, with Fire Brigades Union (FBU) general secretary Steve Wright saying “everybody’s thinking it”.

Mr McFadden, a close ally of the Prime Minister, rejected those demands, arguing a change in leadership could unleash “chaos and uncertainty”.

Pressed on the party’s promise to move on from Tory sleaze, the Cabinet Minister told Sunday morning political programmes: “Maybe one way we can be different is to not drop the pilot after 18 months and to stick with a leader and have consistency in leadership.

“I think he’s got a five-year mandate, which was just voted for 18 months or so ago in a general election. His task is by no means complete, barely begun.

“And I also think it is not good for the country to change its prime minister every 18 months or two years – leading to chaos and uncertainty, economically, politically and reputationally around the world.

“So I know this has been a difficult week, but I think we should stick with the Prime Minister, support him. He admits he’s made a bad mistake here. He has apologised for it, and I’m sure he willing learn from that going forward.”

Mr McFadden said Sir Keir had “acted in good faith throughout this”, and was “horrified” by the recent revelations about Lord Mandelson’s ties with the late paedophile Epstein.

He said calls for the sacking of Sir Keir’s chief of staff, Morgan McSweeney – whom many blame for Lord Mandelson’s appointment, were “beside the point” as it was ultimately a prime ministerial decision.

Colleagues who let it be known they warned the Prime Minister against giving Lord Mandelson the Washington role “have to answer for themselves”, Mr McFadden said.

Allies of Deputy Prime Minister David Lammy and Angela Rayner, seen as a possible successor to Sir Keir, suggested they had not been in favour.

“They’re over 21, you know, they’ll have to answer for themselves on what they’re saying,” Mr McFadden said about the interventions.

But FBU chief Mr Wright argued Sir Keir should have heeded their advice instead of Mr McSweeney’s.

“Unfortunately we’re seeing MPs being wheeled out again today to sweep up the mess behind the Prime Minister at the moment.

“And it seems that the Prime Minister isn’t taking advice from elected people within his own Government. We’ve seen that he didn’t listen to the former deputy prime minister. He hasn’t listened to his current Deputy Prime Minister. He’s listening to a factional group which are making bad decisions, it seems.

“And I want to see the change that was promised and that this country needs.”

Labour grandee Lord Blunkett called for Mr McSweeney’s departure, saying Sir Keir “needs a new chief of staff” because he was advised badly over Lord Mandelson.

The former Cabinet minister also castigated Labour figures engaged in a briefing over the weekend.

Friends of Ms Rayner and potential leadership rival Wes Streeting exchanged bitter remarks amid speculation about a possible contest to replace Sir Keir.

Lord Blunkett told BBC Radio 4: “Things are dire. But they’re made more difficult from briefings and counter-briefings.

“When people see a party acting like ferrets in a sack they draw their conclusions. Once again let’s try and get our act together and speak with a common voice about what we’re about.”

Mr McFadden said he did not discuss Lord Mandelson’s appointment to the ambassadorship with Sir Keir and denied knowing about his friendship with Epstein, despite once working closely with him.

Mr McFadden was Lord Mandelson’s deputy when, as business secretary, the disgraced peer was passing confidential government information about the response to the global financial crisis to Epstein.

He said he felt “a mixture of bewilderment, anger” and betrayal after seeing correspondence between his former boss and Epstein at the time, adding: “It’s possible to have quite a close political relationship with someone, and there are sides of their life that you don’t know about and have no involvement in.”

The Government has agreed to release documents relating to Lord Mandelson’s appointment.

Parliament’s Intelligence and Security Committee, which, after a Downing Street climbdown, was given control over which files to withhold because they could impact national security or international relations, said ministers’ potential discomfort would not be a consideration.

Committee chairman Lord Beamish told Times Radio: “Embarrassment isn’t a reason for withholding information.”

The Conservatives have called for a no-confidence vote in the Prime Minister.

They noted that due diligence seen by Sir Keir before Lord Mandelson’s appointment flagged the fact Lord Mandelson had left Cabinet twice before, his alleged business dealings in Russia and China, and his ongoing relationship with Epstein after his conviction for soliciting a minor for prostitution in 2008.

Shadow chancellor of the Duchy of Lancaster Alex Burghart said: “Any one of these three things on their own should have been serious cause for concern, given that this was our most senior diplomatic posting.

“And yet the Prime Minister went ahead with the appointment anyway, in a way that I’m afraid has totally destroyed the Prime Minister’s reputation and trust in the Prime Minister’s judgment.”