Lord Peter Mandelson has stepped down from the Labour Party in an effort to “avoid causing further embarrassment” following allegations of receiving $75,000 from Jeffrey Epstein during his tenure as a Member of Parliament.

The peer, who was dismissed from his role as the US ambassador last year due to his association with the convicted sex offender, has been implicated through newly released documents by the US Department of Justice.

Among the revelatory documents is a striking image where Lord Mandelson appears to be in a room at Epstein’s New York mansion, clad in underpants, conversing with a woman in a white bathrobe. The former Labour Cabinet minister is seen pointing to a computer tablet in the photograph.

Additionally, financial records suggest that Lord Mandelson received approximately $75,000 from Epstein between 2003 and 2004. However, he has expressed skepticism regarding these statements, claiming no recollection of the payments and questioning their legitimacy.

Lord Mandelson also stated that he has no memory of the photograph depicting him in white Y-fronts being taken, adding another layer of mystery to the unfolding situation.

Lord Mandelson said he does not recall receiving the payments, and questioned their authenticity. He also said he had no memory of the photo of him in white Y-fronts being taken. 

However, in an update this evening, the peer said he had written to Hollie Ridley, general secretary of the Labour Party to say he was renouncing his membership.

In his letter, he said: ‘I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.

The photograph, which has been released as part of the Epstein files, apparently shows Lord Mandelson talking to a woman who is wearing a white bath robe

Lord Mandelson (left) is pictured with Jeffrey Epstein (right) and a birthday cake in an image released in December 

Lord Mandelson (pictured with Keir Starmer) was ousted as US ambassador last September after other revelations about his ties to Epstein 

‘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.

‘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.’

Documents from Friday’s release also appear to show Lord Mandelson suggesting to Epstein in 2009 that he would lobby the UK government over the matter of bankers’ bonuses.

An email dated December 15, 2009, which purports to be from Epstein, reads: ‘any real chance of making the tax only on the cash portion of the bankers bonus’.

The reply, apparently from Lord Mandelson, reads: ‘Trying hard to amend as I explained to Jes last night. Treasury digging in but I am on case.’

The emails suggest the peer, then business secretary, was prepared to lobby the Government over the so-called ‘super tax’ introduced in early December 2009, by then-chancellor Alistair Darling, to clamp down on bank profits being used to pay large bonuses for bankers in the wake of the financial crisis.  

After Lord Mandelson’s resignation from the party, a Labour spokesperson said: ‘The Labour Party takes all complaints seriously and they are investigated in line with our rules and procedures.’

The Conservatives called for a ‘full and thorough independent investigation’ into Lord Mandelson’s appointment as US ambassador, after his resignation from the Labour Party.

A Conservative Party spokesman said: ‘Lord Mandelson is completely disgraced. Yet Keir Starmer lacked the backbone to take action, allowing Mandelson to resign from the Labour Party instead of kicking him out.

‘Keir Starmer and his chief of staff appointed Mandelson ambassador despite his relationship with Epstein, and then refused to act even as the mountain of evidence against him grew.

In one extraordinary photograph, Lord Mandelson appears to be standing in his underpants chatting to a woman who is wearing a white bath robe

A source close to Lord Mandelson said that the peer (pictured) had no recollection of the photograph being taken and had no idea where it was taken or who had taken it (file image)

‘Given the Prime Minister’s appalling lack of judgment and the participation of his Downing Street operation, there must now be a full and thorough independent investigation.’

Furthermore emails released in the Epstein files on Friday show Epstein sent £10,000 to Mandelson’s Brazilian husband Reinaldo Avila da Silva to pay for an osteopathy course.

Da Silva emailed Epstein on September 7, 2009 – two months after the paedophile was released from prison after serving 12 months of an 18-month sentence on child sex offences – and asked for money.

At the time, Mandelson was business secretary and in a relationship with Da Silva. The pair married in 2023.

Da Silva wrote: ‘I sent you a couple of emails last week regarding my osteo course expenses incl fee, anatomical models, laptop if you can help me with this. I hope you received them.

‘I just managed to speak to the fees office at the osteoporosis school and confirmed that my annual fee is of £3225. They accept bank transfer and the details are as follows.’

Epstein immediately responded saying: ‘I will wire your loan amount immediately.’

Mandelson emailed Epstein saying: ‘Remind him that to avoid a gift-tax filing it must be a loan.’

Da Silva thanked Epstein days later (Sept 17) writing: ‘Thank you for the money which arrived in my account this morning.’

In April 2010, da Silva again shared his bank details with Epstein who forwarded the email to his accountant with the instruction: ‘Send 13k dollars.’

In another email Epstein wrote: ‘Send 2k per month to Reinaldo.’

In July 2009 – while he was still serving out his prison term in a day release programme – Epstein wrote to Mandelson: ‘You didn’t call me. I spent an hour with Rinaldo…(sic)’

An apologetic Mandelson responded: ‘I was immersed in Afghanistan…thanks for talking to Reinaldo. It did him (therefore me) a lot of good. You now see the problems. I cannot talk to him about these things at all. He won’t listen. I am doing Sunday media then will call. Thanks again xxx’

Epstein is pictured in Cambridge in 2004 

Mandelson’s friendship with Epstein started around 2002 and continued until 2011.

During that time Mandelson served as Cabinet minister in both Tony Blair and Gordon Brown’s governments.

The former ambassador was sacked last September after a 2003 ‘birthday book’ for Epstein contained a message from Mandelson calling the pervert ‘my best pal’.

Mandelson told Epstein ‘I think the world of you’ and advised him to ‘fight for early release’ from his jail term.

Flight records show Mandelson flew on Epstein’s private jet, dubbed the ‘Lolita Express’, and stayed at his homes in New York, Palm Beach and on his private Caribbean island.

Previously published pictures showed Mandelson in a bathrobe and another wearing swimming trunks.

Mandelson has repeatedly apologised for his friendship with the paedophile and has been on a leave of absence from the House of Lords.

Critics have said he should be stripped of his peerage and expelled from the Labour Party.

On Friday he released a statement saying: ‘I was wrong to believe Epstein following his conviction and to continue my association with him afterwards.

‘I apologise unequivocally for doing so to the women and girls who suffered. I was never culpable or complicit in his crimes. Like everyone else I learned the actual truth about him after his death.’

Epstein committed suicide in jail in 2019.