Keir Starmer has issued a heartfelt apology for appointing Peter Mandelson as the U.S. ambassador, acknowledging he was unaware of the “depth and darkness” of Mandelson’s connections to Jeffrey Epstein.

The Prime Minister expressed regret, stating that the prominent New Labour figure had “lied” about the extent of his association with the convicted sex offender.

Starmer also promised that documents related to Mandelson’s vetting process will be made public “as quickly as possible,” attributing the current delays to police investigations.

However, Starmer is facing mounting pressure, with even some of his staunch supporters suggesting that his leadership might be in jeopardy.

In an unusual moment in the House of Commons yesterday, Starmer admitted that he had appointed Lord Mandelson as the U.S. ambassador while being aware of his continued friendship with Epstein, even after Epstein’s imprisonment.

The Prime Minister emphasized that certain details of Mandelson’s vetting would remain confidential due to “national security” and “international relations” concerns.

But within hours the government was forced to U-turn by furious Labour MPs – including his former deputy Angela Rayner – threatening to vote for a Tory disclosure motion. 

The cross-party Intelligence and Security Committee will now decide what material is released, with the chair warning ’embarrassment’ is not enough for evidence to be suppressed.

In a worrying sign, markets took fright at the gathering chaos this morning, with the Pound down 0.4 per cent against the dollar and UK government borrowing costs rising.

Sir Keir’s allies tried to get back on the front foot today by blaming the intelligence services for failing to raise red flags about Mandelson.

Housing Secretary Steve Reed said during a round of interviews: ‘The vetting process was the same vetting process that has been in place for years. In this case it has clearly failed.

‘So we’ll want to look at that vetting process to find out why was it that Mandelson’s deception was not exposed to that point because he should never have been appointed. 

‘If the (security) forces had come up with more information that showed what had been really going on, he would never have become the UK ambassador, but he did.’

Keir Starmer gave a speech in East Sussex this morning, as he was warned the ‘clock is ticking’ on his leadership. Even loyalists are saying he is effectively finished

In an extraordinary Commons moment yesterday, Sir Keir admitted that he appointed Lord Mandelson as US ambassador despite knowing he stayed friends with Jeffrey Epstein (pictured together) after the financier was jailed

The tranche of documents released by the US includes a confidential No10 email seemingly sent on by Lord Mandelson to Epstein at the height of the Credit Crunch, talking about the UK government having ‘saleable’ assets 

Downing Street sources played down the prospects of papers being released today, although it is still possible. 

Even normally loyal Labour MPs have questioned how long Sir Keir can hang on with his authority in tatters. 

Senior MPs warned the situation will ‘not end well’ for Sir Keir and the ‘clock is ticking’, while ex-Cabinet minister Lord Hutton suggested his time in power is coming to a close.

There are growing demands for chief aide Morgan McSweeney to be axed over the Mandelson debacle – which ignited again after the US release of millions of Epstein emails showing the depth of their relationship.

Former minister Karl Turner told Times Radio that Labour is in a ‘crisis situation’ and Sir Keir must ‘get rid of those advisers who have given terrible advice to him’ over weeks and months.

‘If McSweeney continues in No10 Downing Street, I think the PM is up against it in a way he doesn’t need to be,’ he said. 

However, Sir Keir is said to recognise that his own fate is tied to that of his closest adviser. He voiced ‘confidence’ in Mr McSweeney yesterday, and Housing Secretary Steve Reed said this morning that ‘of course’ the aide will stay in post.  

Allies will also take solace from the difficulties facing potential replacements. Ms Rayner has huge support on the Labour benches, but is not thought to have settled her tax issues with HMRC after being forced to resign in September.

Meanwhile, Health Secretary Wes Streeting is widely regarded as on manoeuvres, but was previously close to Lord Mandelson.

Another oft-touted contender, Andy Burnham, was blocked by Sir Keir from standing in the Gorton & Denton by-election and so does not have the immediate platform to mount a challenge.

Some MPs have been talking up the credentials of defence minister Al Carns, although he has only been in Parliament since 2024.

Ed Miliband would also be in the frame as a replacement should Sir Keir be engulfed imminently, but has insisted he does not want the job. 

Rumours of ministerial resignations to enforce the PM’s departure have also yet to come to pass. 

Labour rules require one candidate to get nominations from 80 MPs in order to mount a challenge.  

One senior Labour source told the Daily Mail: ‘Would any credible challenger go before the by election or before May? That’s not tempting.’ 

Sir Keir will try to move on from the Mandelson furore with a speech about the government’s domestic policies in the South East this morning, but the topic is certain to dominate questions.

Sent out to try to calm MPs this morning, Mr Reed told Sky News: ‘The person at fault here is not the Prime Minister or his team.

The government was forced to U-turn by furious Labour MPs – including his former deputy Angela Rayner- threatening to vote for a Tory disclosure motion

Health Secretary Wes Streeting is widely regarded as on manoeuvres, but was previously close to Lord Mandelson

Another oft-touted contender, Andy Burnham, was blocked by Sir Keir from standing in the Gorton & Denton by-election and so does not have the immediate platform to mount a challenge

Some MPs have been talking up the credentials of defence minister Al Carns, although he has only been in Parliament since 2024. Mr Carns was in Norway yesterday as the row escalated

‘It is Peter Mandelson who lied, manipulated and deceived everybody, including the media, actually, because he was on the media an awful lot as well. He conned everybody.

‘What matters is what you do when you find out what’s gone wrong. And the Prime Minister couldn’t have been more decisive. He sacked Peter Mandelson at 5am in the morning as US ambassador months ago.’

Mr Reed said he felt like he had ‘been punched in the stomach’ when he found out about Lord Mandelson’s dealings with Epstein from the documents released by US authorities.

Lord Mandelson has denied the documents show he broke any laws or acted for personal gain. He has repeatedly said he regrets his friendship with Epstein.

Nigel Farage said it was the ‘biggest scandal in British politics for over a century’.

Speaking at an event at the International Convention Centre Wales in Newport, the Reform leader said: ‘It isn’t just some sort of Partygate but a bit bigger.

‘This involves sex, it involves money, it involves the royal family. It involves the leaking of market sensitive, confidential information.

‘I suspect its pretty close, in many ways, to breaching the Official Secrets Act. This is far bigger than the Profumo scandal 60 years ago. This is the biggest scandal in British politics for over one century.’

Mr Farage said he believed Morgan McSweeney, the chief of staff for Prime Minister Sir Keir Starmer, would be ‘gone pretty quickly’.

‘I don’t know how long Starmer will last as PM,’ he joked.

‘Indeed, I’m very worried about it. I want him to stay forever.’