Mandelson scandal is ‘serious’ for Starmer but PM is ‘man of integrity’, Brown says

Brown himself admitted to making a "mistake" by bringing Lord Mandelson into his own cabinet in 2008, a decision that saw Mandelson, a prominent figure in the New Labour era often dubbed the "Prince of Darkness," elevated to a peerage to enable his return to government as Business Secretary and First Secretary of State. This admission from a former premier underscores the gravity of the current revelations and their potential impact on Labour’s contemporary leadership. Despite the criticisms, Brown expressed confidence that Sir Keir had been "betrayed" by Lord Mandelson and was the right leader to address systemic issues.

The controversy stems from recently released Jeffrey Epstein files, which include email exchanges suggesting Lord Mandelson, while serving in government, passed on market-sensitive information. Police have now concluded searches of two properties linked to Lord Mandelson in Wiltshire and north London as part of an ongoing investigation into allegations of misconduct in public office. These emails reportedly indicate that Lord Mandelson provided Epstein with advance notice of a significant €500bn EU bailout in 2010, intended to stabilize the ailing Eurozone. Further, they suggest he shared internal government information regarding the UK’s struggling economy in 2009 and lobbied the Treasury on banking policy at Epstein’s behest, all while a senior minister in Brown’s government during the global financial crisis.

Sir Keir Starmer addressed the allegations earlier this week, stating that Lord Mandelson had "lied" to him about the true extent of his relationship with Epstein during the vetting process for the role of US ambassador. Starmer remarked, "None of us knew the depths and the darkness of that relationship," implying a significant deception. While acknowledging that Lord Mandelson’s friendship with Epstein was publicly known prior to the proposed ambassadorship, Starmer maintained he would not have appointed the peer had he been aware of the full details now emerging. He specified that Mandelson had been directly questioned about the nature of his relationship with the disgraced financier during vetting, portraying Epstein as "someone he barely knew."

Brown reiterated the seriousness of the situation for Starmer’s leadership, reflecting on similar challenges faced by past Prime Ministers. "Well, this is obviously serious. I mean, there’s always speculation. It happened to me, it happened to Tony Blair, it happens to everybody about how their future should be gauged," Brown observed. He emphasized that the primary task now is clear: "We’ve got to clean up the system… and end the corruption and unethical behaviour. And if we don’t do it, we’ll pay a heavy price." The former Labour PM reaffirmed his belief in Sir Keir as "a man of integrity" who "wants to do the right things." However, he added a critical caveat: "Perhaps he’s been too slow to do the right things, but he must do the right things now. And let’s judge what he does on what happens in the next few months, when he tries – and I believe [he] will try – to clean up the system."

Brown did not hold back in his condemnation of Lord Mandelson’s alleged conduct, stating unequivocally that he believed Mandelson "betrayed" his country by leaking such sensitive information. He explained the severe implications: "Britain was at risk because of that, the currency was at risk, some of the trading that would happen would be speculative as a result of that – and there’s no doubt that huge commercial damage could have been done and perhaps was done." Brown described his personal reaction to the messages as feeling "shocked, sad, angry, betrayed, let down." He highlighted how the emails indicated Mandelson, who Brown had made a peer to facilitate his cabinet return, was allegedly planning for a career outside government even while serving as Business Secretary during the nation’s critical response to the global financial crisis. "The emails show that," Brown asserted. "They show that he was talking about writing a book while he was supposed to be a government minister. He was talking about how he would get a job after the government was over and talking about what banks would employ him. All these things were happening at one and the same time, so it was a complete betrayal of his colleagues and of the job that he was carrying out and, of course, it was a betrayal of the country."

The market-sensitive nature of the information Mandelson allegedly shared is a key focus. Among the disclosed email exchanges, one suggested Mandelson provided Epstein with foreknowledge of the €500bn EU bailout in 2010. Another included a 2009 memo from Nick Butler, then Brown’s policy adviser, detailing the UK’s economic struggles and recommending the sale of government-held assets to raise public funds. Brown stressed that this constituted "market-sensitive" and "financially secret information," the kind from which individuals could profit through speculative trading based on currency fluctuations. "I see it as a financial crime, and there’s no doubt that that was very dangerous," Brown stated. "And look, all the information he passed on, the papers by other advisors were commercially sensitive. This was financially secret information. It meant that Britain was at risk because of that."

The Metropolitan Police confirmed on Saturday that while searches at two properties linked to Lord Mandelson have concluded, the 72-year-old has not been arrested, and enquiries remain ongoing. Deputy Assistant Commissioner Hayley Sewart indicated the complexity of the investigation, stating, "This will be a complex investigation requiring a significant amount of further evidence gathering and analysis. It will take some time to do this work comprehensively and we will not be providing a running commentary."

The broader context of the Epstein files has also led to calls for other prominent individuals to testify. Andrew Mountbatten-Windsor, who also appeared in photographs released within the recent Epstein file disclosures, has faced demands to testify before the US Congress on his dealings with Epstein, including from Sir Keir Starmer. Reports this week suggest Lord Mandelson could be issued with a similar request, though he currently has no legal obligation to appear while in the UK. Brown asserted that Lord Mandelson, Andrew, and "anybody who knows anything about this has got to give the information to the authorities that will allow us to see what we can do to root out what is the most egregious abuse of power." He added a stark warning about the nature of the network involved: "We’re dealing with a global network of very powerful people who believed that they could break the law, they believed they could do anything because nobody would prosecute them."

In response to the scandal, Brown renewed his urgent calls for "comprehensive" reform of the British political system, arguing that "we don’t do well enough in imposing standards on members of parliament, on ambassadors but also on government ministers." He highlighted a "systemic failure to do proper vetting" for senior appointments. To address this, Brown advocated for the introduction of an "anti-corruption commission" with "powers to seize assets," alongside a raft of other measures designed to elevate standards in public life. Among his recommendations, drawn from his report "A New Britain: Renewing our Democracy and Rebuilding our Economy," are US-style confirmation hearings for ministers and senior government appointments. Brown suggested that such public scrutiny for Lord Mandelson’s proposed US ambassadorship would have allowed "people [to] ask the questions of Mandelson and see whether he was indeed the liar that he is now been seen to be."

While acknowledging Sir Keir "was misled and he was betrayed" by Lord Mandelson during the vetting process, Brown stressed that this was "not a sufficient explanation for what happened." He proposed that an ethics commission should be granted statutory powers to inspect the bank accounts of individuals being appointed to senior government positions. Additionally, Brown called for a stringent crackdown on "the systematic abuse of power by lobbyists" and a general ban on MPs holding second jobs, with the sole exception of doctors. He concluded by underscoring the fundamental issue at stake: "This is an issue of trust, and trust once dented is difficult to recover, and that’s why we need a comprehensive set of actions on corruption, ethics, lobbying, and indeed on openness." The coming months will be crucial for Sir Keir Starmer to demonstrate his resolve in implementing these reforms and restoring public confidence.