Labour Peer Resigns Amid Epstein Payment Storm
Lord Peter Mandelson has dramatically resigned from his membership of the Labour Party following fresh revelations about his financial connections to convicted sex offender Jeffrey Epstein. The former British ambassador to the United States announced his decision on Sunday evening, stating he wished to avoid causing "further embarrassment" to the party after bank statements emerged showing substantial payments from Epstein.
Financial Transactions Under Scrutiny
Newly released documents from the US Department of Justice investigation into Epstein appear to show the peer received approximately $75,000 from the disgraced financier between 2003 and 2004, during Mandelson's tenure as a Labour MP. The bank records form part of a trove of over three million documents made public over the weekend, placing renewed pressure on the veteran political operator.
In a letter to Labour's general secretary, Lord Mandelson expressed regret about the ongoing controversy but questioned the authenticity of the payment records. "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. The peer maintained he had no memory of receiving the funds and pledged to examine the claims personally.
Embarrassing Personal Revelations
Further damaging material emerged from a 50th birthday photo book compiled for Epstein by his associate Ghislaine Maxwell, currently imprisoned for her role in recruiting and trafficking minors. Mandelson's apparent contribution featured photographs of the pair together, including one showing the former minister grinning in a bathrobe, accompanied by text describing Epstein as his "best pal."
The message referenced entertaining Epstein's "interesting" friends and concluded with the affectionate sign-off "we love you." Lord Mandelson later described these communications as "embarrassing to see and to read," acknowledging the inappropriate nature of the relationship while maintaining he had no knowledge of Epstein's criminal activities.
A Political Career Under Examination
The Epstein revelations have cast a shadow over Mandelson's remarkable five-decade political journey, which saw him rise from Lambeth Borough Council in 1979 to become one of Labour's most influential figures. His career highlights include:
- Serving as Labour's director of communications under Neil Kinnock
- Winning the Hartlepool parliamentary seat in 1992
- Masterminding Labour's 1997 landslide election campaign
- Holding multiple cabinet positions including Business Secretary
- Appointment as British ambassador to the US in 2024
His appointment as US ambassador proved particularly controversial, with critics questioning his suitability given his lobbying work and Epstein connections. The position ended abruptly in September 2025 when Labour leader Sir Keir Starmer dismissed him amid mounting pressure over the Epstein relationship.
Deepening Epstein Connections
The weekend's document release revealed additional financial links beyond the $75,000 payments. Emails suggested Epstein sent £10,000 to Mandelson's husband, Reinaldo Avila da Silva, in September 2009 to fund an osteopathy course and related expenses. This occurred while Epstein was serving an 18-month prison sentence for soliciting prostitution from a minor.
A previous JPMorgan Chase report had already detailed what it described as a "particularly close relationship" between the two men, noting Epstein used the affectionate nickname "Petie" for the Labour peer. The report indicated Mandelson stayed at Epstein's New York residence in June 2009 while serving as Gordon Brown's Business Secretary.
Apology to Victims
In January, Lord Mandelson issued a formal apology to Epstein's victims for maintaining the friendship after the financier's conviction. "I was wrong to believe him following his conviction and to continue my association with him afterwards. I apologise unequivocally for doing so to the women and girls who suffered," he stated.
Allies have sought to downplay the relationship's significance, claiming the pair met on no more than five or six occasions. A spokesman for Mandelson stated he "very much regrets" the connection with Epstein, while emphasising there is no suggestion the peer had any knowledge of the financier's criminal behaviour.
The resignation marks a dramatic fall from grace for a figure once dubbed the "Prince of Darkness" for his behind-the-scenes political influence, raising serious questions about judgment and accountability at the highest levels of British politics.
