A 'weirdly rushed' appointment - and other key takeaways from Mandelson files

Government documents running to 147 pages have revealed new details about the appointment of Lord Mandelson as the UK's ambassador to the US and the fallout from his sacking last year.

It's the first release of files related to the process to hire and later fire Lord Mandelson, after MPs forced the government to disclose the files.

Lord Mandelson was sacked as ambassador last year after revelations emerged about his friendship with the late convicted sex offender Jeffery Epstein.

The peer is under criminal investigation over allegations of misconduct in public office and has repeatedly let it be known that he believes he has not acted criminally, did not act for personal gain and is co-operating with the police.

Here are the key details from the first batch of documents.

The documents show that Prime Minister Sir Keir Starmer was advised that Lord Mandelson's relationship with Epstein posed a "general reputational risk" ahead of his confirmation as US ambassador.

In an advisory note sent to the prime minister on 11 December 2024, nine days before he was confirmed as ambassador, other reputational risks flagged to the prime minister included Lord Mandelson's previous sackings from government.

The note also says Lord Mandelson was "seen as an advocate for closer UK-China relations".

Sir Keir was told that the JP Morgan bank commissioned a report in 2009 that found Lord Mandelson had maintained "a particularly close relationship" with Epstein after the financier's conviction for soliciting prostitution with a minor.

The prime minister has maintained he did not know "the extent and depth" of Lord Mandelson's relationship with Epstein when he appointed him.

But given what this advisory note says, the prime minister is likely to face questions about his judgement.

British ambassadors are usually career diplomats, but in a departure from the norm, Lord Mandelson was a politician and businessman when he was appointed to the top diplomatic role in Washington.

At the time he was hired, Sir Keir said Lord Mandelson would bring "unrivalled experience to the role" and was seen as a savvy political operator, someone who could strengthen the government's relations with President Donald Trump's White House.

One email from the documents suggests Karen Pierce, the UK's former ambassador to the US, had provided a "report of her call with Mike Waltz", Trump's national security adviser at the time.

Following this there was "no suggestion that Peter's nomination was an issue in the Trump p/c", the email says.

The government told the BBC "p/c" in this context meant press conference. Although it's unclear which Trump press conference the email was referring to.

Trump had a well-documented relationship with Epstein, but has consistently denied any wrongdoing in relation to the disgraced financier and has said he did not know about his crimes.

Civil servants, such as those employed in ambassadorial roles, can be eligible for severance packages when their employment is terminated.

The documents suggest that Lord Mandelson requested a severance payment of more than £500,000 after being sacked as the UK's ambassador to the US.

The claim has been repeated by Darren Jones, the chief secretary to the Prime Minister, in the House of Commons.

Jones said the government found that demand to be "inappropriate and unacceptable".

The BBC understands Lord Mandelson takes issue with the claim and insists he made it very clear he had no intention of taking his case to an employment tribunal.

The Treasury ultimately agreed a payment of £75,000.

One email from the documents, written by an official, says the government did "well to get this settlement down this low with minimal fuss".

In an email following his sacking, dated 17 September, 2025, Lord Mandelson wrote: "My chief concern is leaving the US and arriving in the UK with the maximum dignity and minimum media intrusion which I think is to the advantage of all concerned, not least because I remain a crown/civil servant and expect to be treated as such. How is the FCDO assisting in this?"

He also said he understood he had "common law employment rights", adding "this will be better understood by lawyers than by me".

Elsewhere in the documents, the prime minister's national security adviser, Jonathan Powell, said he found the appointment of Lord Mandelson "weirdly rushed".

Powell is noted as having raised concerns "about the individual and reputation" to Sir Keir's former chief of staff Morgan McSweeney.

These comments were included in a "fact-finding call" between Powell and the prime minister's lawyer, Mike Ostheimer, the day after Lord Mandelson's sacking on September 11, 2025.

Powell worked extensively alongside Lord Mandelson, primarily as chief of staff to the prime minister during Tony Blair's premiership from 1997 to 2007.

He is now a powerful adviser to Sir Keir and his opinion would have carried some weight in government if he had expressed those views during the appointment process. There is no suggestion of wrongdoing by Lord Mandelson.

The documents also contain emails that show Lord Mandelson had a role in arranging a meeting between Blair and Epstein in 2002.

In an email sent on 7 May 2002 to Jonathan Powell, Lord Mandelson wrote: "I mentioned to TB that Jeffrey is in London next week and he said he would like to meet him."

A memo written by senior civil servant Matthew Rycroft, dated 14 May 2002, briefs Sir Tony about "super-rich" financial adviser Epstein ahead of a meeting scheduled that day.

It adds: "Close to the Duke of York."

"Peter says that Epstein now travels with Clinton and Clinton wants you to meet him. He thinks you would find worthwhile a conservation with him about a) science and b) international economic and monetary trends," the letter states.

The BBC confirmed in 2025 that the meeting did take place.

A spokesperson for Sir Tony said: "As far as he can remember, Mr Blair met with him for less than 30 minutes in Downing Street in 2002, and discussed US and UK politics. He never met or engaged with him subsequently."

He added: "This was, of course, long before his crimes were known of and his subsequent conviction."

Remember, this is the first of two releases expected in the coming weeks and months.

Officials are combing through thousands of documents and today's material could be the tip of the iceberg.

Speaking in the Commons, Jones said the Metropolitan Police had asked the government not to publish certain documents in order not to prejudice its criminal investigation into Lord Mandelson.

Lord Mandelson was arrested last month on suspicion of leaking sensitive government information while serving as business secretary during the last Labour government.

Lord Mandelson has not responded to requests for comment but the BBC understands his position is that he has not acted in any way criminally and that he was not motivated by financial gain.

One notable absence from this first batch of documents is one vetting exchange involving three questions that McSweeney, Sir Keir's former chief of staff, asked Lord Mandelson regarding his ties to Epstein.

The BBC understands these questions related to his continued contact with Epstein after his first conviction for soliciting prostitution with a minor; reports that he had stayed at Epstein's home while the financier was in prison; and his association with a charity founded by Epstein associate Ghislaine Maxwell.

Sir Keir has claimed the documents will show Lord Mandelson lied to him about the extent of his friendship with Epstein, which continued after he had been convicted in 2008.

The BBC understands Lord Mandelson's view is that he answered questions about his relationship with Epstein in the vetting process accurately.

Jones told MPs these matters were "at heart of the police investigation".

He said all documents in scope for release would be published in the future.