Mandelson-Starmer latest: Former peer’s US ambassador pay-off ‘to be reviewed’ as Lammy reveals he also warned PM

Labour peer, Ayesha Hazarika said there is "no doubt that the prime minister is wracked with upset and frustration and regret this weekend as this story is blowing up", she told Sky New’s Trevor Phillips' panel this morning.

But she added: "This has been an absolutely shameful week for the Labour Party, particularly a party which has always prided itself on wanting to stand up for women and girls.

"I have never known rage and fury and devastation particularly from female MPs, peers, councillors, party members as I have over this last week."

More broadly, Hazarika said this is "a story about male power and a boys club", and said the Epstein files showed "who runs the world, who has unfettered power, and how these men connect with each other, how they do transactions with each other and how they think they can act with impunity, whether it's the procuring of underage girls, whether it's leaking kind of secret information about state secrets to each other".

She asked why there was "not more curiosity of mind" when it came to Peter Mandelson, and questioned why he was considered the best person for the job.

Hazarika continued: "Everybody knew that Peter Mandelson swam in these circles, that he mixed around with these big guys - he was seduced by wealth, and power, and men with yachts, and all the culture that goes with that.

"That is why he was given the job, because the calculation was: 'these are the slightly tawdry circles in which the US president moves, and we need a guy that swims in these pools, sits in these hot tubs, if you like, with these big guys - they can do business together'.

"And that transactional thought was put over the victims."

She added that Labour has to ask "some very reflective, soul-searching questions" about why it has been "so seduced" by Mandelson over so many decades.

Keir Starmer's position as prime minister is "untenable" after the Mandelson “disaster” a senior Tory has said.

Alex Burghart, the Conservative Party's shadow Cabinet Office chief, told Trevor Phillips on Sky News’s Sunday Morning programme that this whole affair is "about the prime minister's judgement" and is "very serious".

Mr Burghart said: "The most dramatic piece of evidence" against the prime minister himself this week in the Mandelson affair, which was his admission at Prime Minister's Questions that "he knew that Peter Mandelson had an ongoing relationship with the paedophile Jeffrey Epstein when he appointed him to be ambassador in Washington".

"This obviously throws the prime minister's judgement into the most serious question, to the point where it's clear that a lot of people in his party no longer trust him," he said.

"The prime minister must ultimately take responsibility for this because, at the moment, he's refusing to do so," he continued.

Burghart also described Mandelson's appointment as ambassador to the US as a "disaster".

Sir Keir Starmer is facing further backlash as it emerged that deputy prime minister David Lammy warned the leader about appointing Lord Peter Mandelson as US ambassador amid his links to Jeffrey Epstein.

Friends and allies of Lammy told the Telegraph he had been against the appointment of Mandelson and in favour of an extension of Dame Karen Pierce’s term in the role due to her connections to President Donald Trump’s inner circle.

Mr Starmer is said to be “devastated” over the scandal and contemplating whether to stay as PM, according to the publication.

Previously, when the Epstein revelations came to light, Mandelson said: "I was wrong to believe Epstein following his conviction [in 2008 for procuring a child for prostitution and of soliciting a prostitute] and to continue my association with him afterwards. I apologise unequivocally for doing so to the women and girls who suffered."

And in an interview with The Times, Lord Mandelson referred to a "handful of misguided historical emails, which I deeply regret sending".

Gordon Brown, who brought Peter Mandelson back into government in 2008, has been speaking out about his former business secretary, and calling for new anti-corruption measures to prevent the leaking of documents from government, which Mandelson is accused of doing.

Senior Tory Alex Burghart was asked if if a new anti-corruption commission would be a good idea, by Sky's Trevor Phillips and he responded: "It depends [on] what that commissioner would do, what their powers were, and who they were.

"I think it's very easy for politicians to, in a moment like this, say, 'if there was only one additional role then everything would be fine'.

"What's happened in this instance is that the prime minister had a clear choice, he had clear information, and he made a bad decision.

"And ultimately, there's nothing that can really guard you against that."

Tory Alex Burghart said: "I think if the prime minister had stopped to think about what he was doing, he would not have made the appointment.”, he told Trevor Phillips on Sky News’s Sunday Morning programme.

"And we now know that all of the evidence was in front of him, or enough evidence was in front of him when he made the appointment."

Starmer is being accused of not listening to Epstein survivors by appointing peter Mandelson as ambassador the US, despite knowing he had an ongoing relationship with the peadeophile.

Mr Burghart referred to reports that the Cabinet Office's due diligence report had showcased issues with Mandelson's potential appointment before it was announced, which included concerns about his relationship with Epstein.

"I don't know what Peter Mandelson did or didn't know," Burghart said.

"He certainly denied that he knew about Epstein's dealings with you know child prostitution. But he would have known after the court conviction [in 2008]."

Lord Peter Mandelson faced demands to hand back the payoff he received after being sacked as ambassador to the US, a sum which could run into the tens of thousands.

The peer was sacked over his relationship with paedophile financier Jeffrey Epstein, but anger in Westminster has intensified after the latest release of documents which indicated he leaked information to his friend while he was a government minister.

Read more:

Cabinet minister, Pat McFadden suggested he did not discuss Lord Peter Mandelson’s appointment with Sir Keir Starmer. He added that colleagues who let it be known they warned the Prime Minister against it “have to answer for themselves”.

Mr McFadden was Lord Mandelson’s deputy when, as business secretary, the disgraced peer was leaking confidential government information about the response to the global financial crisis to paedophile Jeffrey Epstein.

“I don’t believe I discussed this with the Prime Minister,” the Cabinet minister told Sky News, but acknowledged the possibility that the government documents soon to be released about the appointment may highlight evidence proving the contrary.

“You don’t remember every piece of paper you saw, but I do not believe discussing this appointment with the Prime Minister.”

Allies of Deputy Prime Minister, David Lammy and Angela Rayner, who are seen to be possible successors to Sir Keir, suggested they had not been in favour of giving Lord Mandelson the top Washington job.

“It’s up to them,” Mr McFadden said when asked about their interventions.

“They’re over 21, you know, they’ll have to answer for themselves on what they’re saying.”

The reason Lord Peter Mandelson was appointed ambassador to the US was because he was seen as a skilled political operator with the administration of Donald Trump, Pat McFadden said.

“In the end the judgment was, they were looking for someone who could operate at the highest political level with the Trump administration, who knew business, who knew trade”, the work and pensions secretary told Sky News.

“Now that turns out to have been the wrong decision, and it’s blown up in the most spectacular manner. But it’s important for your viewers to understand why on earth was this appointment made in the first place, and that is the reason.”

At the time Mr McFadden said much of the media praised the appointment, adding: “He wasn’t plucked from obscurity or disgrace.”