Starmer's premiership in peril as Rayner twists knife over Mandelson
by SOPHIE CHURCH - POLITICAL REPORTER · Mail OnlineKeir Starmer's premiership was in grave peril on Wednesday after Angela Rayner led a huge Labour revolt against his handling of the Peter Mandelson scandal.
In a dramatic move, the former deputy prime minister forced Sir Keir into a humiliating climbdown over the release of documents surrounding his disastrous appointment of the disgraced Labour peer as US ambassador.
Ms Rayner is widely seen as a likely contender to succeed Sir Keir and her decision to intervene was viewed at Westminster as a sign she believes his premiership is on the rocks.
On Wednesday, rumours swept Westminster that some ministers are even considering resigning in a bid to accelerate Starmer's downfall.
Sir Keir was wounded further when Kemi Badenoch forced him to admit for the first time that he appointed Lord Mandelson despite knowing he had remained friends with Jeffrey Epstein after he was convicted of child sex offences.
The Tory leader told a stunned House of Commons that the PM's 'absolutely shocking' admission raised serious questions about his judgment and that of his chief of staff, Morgan McSweeney, to whom Mandelson is a mentor.
It was claimed on Wednesday that some Labour MPs had called on Starmer to sack McSweeney - who was pivotal in Mandelson's appointment – in order to save his job.
In the wake of Wednesday's admission, Labour's former shadow chancellor John McDonnell suggested Sir Keir should quit over the growing scandal, saying he had 'lost confidence' in him.
The SNP's Westminster leader Stephen Flynn said the PM's admission was a 'dark day' for Britain - and urged him to apologise to Epstein's victims.
The PM, meanwhile, insisted he is 'as angry as the public' about the conduct of the Labour grandee.
He told MPs that Lord Mandelson had 'lied and lied and lied again' during the appointment process about the 'sheer depth and extent' of his friendship with Epstein, and 'betrayed his country'.
But Downing Street struggled to explain why the PM had pressed ahead with the appointment after being told that Lord Mandelson had stood by one of the world's most notorious sex offenders - and even stayed at his New York mansion following his conviction for child sex offences.
On a day of drama:
- Lord Mandelson was stripped of his membership of the King's Privy Council.
- The Metropolitan Police risked a clash with the Commons by asking the government not to release key details about Lord Mandelson's appointment.
- Documents uncovered by the Mail revealed that Lord Mandelson was continuing to visit Epstein in 2013 - a year later than previously thought and five years after his conviction for soliciting a minor.
- Other documents in the Epstein files suggest the Labour peer took out a £1.7 million loan to buy a luxury flat in Rio de Janeiro, despite claiming he had never owned property there.
- It emerged that Lord Mandelson used convicted sex trafficker Ghislaine Maxwell, Epstein's madam, to help broker Bill Clinton's appearance at Labour's 2002 conference.
Mrs Badenoch on Wednesday forced a Commons vote ordering the release of hundreds of documents surrounding Lord Mandelson's appointment, including private messages exchanged with the PM and Mr McSweeney, who bulldozed through the appointment.
In a pincer movement with mutinous Labour MPs, she used a Commons motion to require the release of all documents surrounding the fateful decision in December 2024.
Sir Keir attempted to neuter the release by suggesting Cabinet Secretary Sir Chris Wormald would be asked to vet all documents to ensure they did not undermine national security or 'international relations'.
But that only saw Mrs Badenoch accuse him of trying to 'cover up' evidence of 'catastrophic lack of judgment' while also managing to rile Labour MPs, led by Ms Rayner.
In a rare intervention since she quit as deputy PM over unpaid stamp duty on a seaside home, Ms Rayner suggested that vetting of the material should be handed over to Parliament's intelligence and security committee, loosening No 10's grip on the process.
Pointing to 'public disgust' about the 'the sickening behaviour of Peter Mandelson' she warned ministers that an independent process was needed to maintain 'public confidence'.
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Her intervention triggered panic on the Labour benches, with Labour chief whip Sir Alan Campbell seen in frantic discussions before agreeing to Ms Rayner's suggestion - just an hour after Sir Keir had rejected the idea.
Following the PM's climbdown, the motion to release the Mandelson files was passed by MPs without a vote. The files will now be picked through by Parliament's Intelligence and Security Committee, who have top level clearance.
But on Wednesday there were doubts about how much material would be released after the Metropolitan Police warned against publishing anything that could undermine its criminal investigation into Lord Mandelson's activities.
Scotland Yard is investigating whether emails in which Lord Mandelson appeared to send Epstein market sensitive information while serving as Labour's business secretary during the financial crisis could constitute misconduct in public office - a crime that carries a potential life sentence.
But Commons Speaker Sir Lindsay Hoyle on Wednesday told MPs that the police could not block the release of documents ordered by parliament, saying: 'They cannot dictate to this House.'
Labour MPs of all stripes rowed in behind Ms Rayner, as they questioned the Government's judgement in appointing Lord Mandelson.
Dame Meg Hillier, Labour chairman of the Commons Treasury committee, said there was a consensus among MPs that they wanted 'as much information in the public domain' as possible.
Liverpool MP Paula Barker said she was 'ashamed' of the way the government was handling the scandal.
Former frontbencher Andy McDonald warned Sir Keir's approach would 'throw a cloak over' the scandal.
Meanwhile, the Mail uncovered more damning emails from the Epstein files on Wednesday, including evidence Lord Mandelson visited the paedophile's house more recently than previously thought.
An email from May 2012 shows Epstein informing his assistant Lesley Groff that Lord Mandelson would stay in his Manhattan townhouse, to which she replied: 'Oh wow... I hope the news people don't find out!'
However the Mail has uncovered a note from almost a year later - April 2013 - from Epstein's assistant confirming that Lord Mandelson was due to go to 'Jeffrey's home' for a 7.30pm dinner.
And a sensational new email also suggests that Epstein's accomplice Maxwell, currently serving 20 years in jail, acted as a broker to arrange Bill Clinton giving a speech at the annual Labour Party conference in 2002.
The former US president delivered a powerful speech at the Labour conference in Blackpool - which took place between 30 September and 3 October 2002 - shortly after leaving office.
Further emails also cast doubt on claims made by Lord Mandelson that he had 'no recollection' of proposing the purchase of a £2million apartment in Rio de Janeiro to Epstein.
The files appear to show Lord Mandelson discussing the purchase of the Brazil apartment using an offshore Panama company with his 'chief life adviser' Epstein. The files suggest that he received approval from HSBC for a loan of £1.68million to acquire the apartment, secured on his £2.4million London home.
Lord Mandelson has denied any wrongdoing in relation to Epstein.
The toxic timeline
1999 The year that Andrew said he first met Epstein, introduced by Ghislaine Maxwell. He visited Epstein’s private island in February.
2002 An article in New York Magazine said Lord Mandelson attended a party at Epstein’s Manhattan home alongside Donald Trump.First emails in the Epstein files between Mandelson and Epstein begin, when he wrote a memo encouraging Tony Blair to meet Epstein.
2003 Mandelson wrote a message to Epstein describing him as his ‘best pal’. Bank statements appear to show that from 2003 to 2004 Epstein paid £54,750 into accounts of which Mandelson was believed to be a beneficiary.
2006 As police in Florida suggest Epstein should be charged with four counts of unlawful sexual activity with a minor, Lord Mandelson tells him: ‘I am here whenever you need.’
2008 Epstein is sentenced to 18 months in prison. Mandelson urges him in an email to ‘fight for early release’.
2009 Mandelson stays at Epstein’s Manhattan apartment while the paedophile is in jail, an internal report by JP Morgan bank suggests.
Epstein is released in July. Two months later, he sent Mandelson’s now husband Reinaldo Avila da Silva £10,000. On June 13 the files suggest Mandelson leaked Epstein a sensitive No10 document proposing £20billion of asset sales and revealed Labour’s tax policy plans.
2010 Files suggest Mandelson forwarded minutes of a meeting between chancellor Alistair Darling and US treasury secretary Larry Summers five minutes after he received them. On May 9, he appears to give Epstein notice of a €500billion euro bailout by the EU.
2013 The last known time that Mandelson visited Epstein at his New York mansion.
2016 Documents show Mandelson remained in contact with Epstein until at least 2016.
2019 Epstein, arrested on sex trafficking charges, is found dead in his cell. In November, Andrew gives his Newsnight interview.
2022 Maxwell is jailed for 20 years in February after being convicted for her role in helping to lure and groom underage girls for Epstein to abuse.
2025 In February, Keir Starmer appoints Mandelson as the UK’s ambassador to the United States. He is sacked in September.