Minister refuses to say if Peter Mandelson should be kicked out of Labour over Epstein scandal

A government minister has refused to rule out Peter Mandelson having the Labour whip restored, despite fresh claims over his links to paedophile Jeffrey Epstein.

A tranche of newly released documents from the so-called Epstein files have suggested the convicted sex offender sent £10,000 to Lord Mandelson’s husband Reinaldo Avila da Silva.

According to the exchange of emails, published by the US Department of Justice (DoJ), Mr da Silva had asked Epstein for money to fund an osteopathy course and other related expenses in September 2009.

Housing, communities and local government secretary Steve Reed said on Sunday the party would “need to understand exactly what's happened” before taking action.

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When asked whether Lord Mandelson should have the Labour whip restored and possibly be stripped of his peerage, Mr Reed told Sky News: “I think before taking any action like that, we need to understand exactly what's happened.

“You're asking me here about something that happened nearly 20 years ago. I don't know the full detail of it. I wasn't in government 20 years ago.”

“I think it would be for Peter Mandelson to explain whether or not that money was properly declared, and if not, then he will need to account for that.

“But I don't want to jump the gun and make assumptions. I think we need to find out exactly what happened.”

Labour has been under pressure to rule out allowing Lord Mandelson to hold the party whip if he returned to the House of Lords, where has has been on a leave of absence from since he took up his role as US ambassador.

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If the party whip is withdrawn on return, the former ambassador to the US would need to sit as an independent without the backing of Labour.

The documents are among three million files relating to the convicted sex offender released by the DOJ on Friday. Being named or pictured in the Epstein files does not suggest any criminality or wrongdoing.

According to the new files, Epstein sent Lord Mandelson money as early as 2003. A file from Epstein’s JPMorgan accounts, dated May 2003, shows a payment of $25,000 was sent to Reinaldo da Silva, Lord Mandelson’s partner.

Lord Mandelson was named and listed as ‘BEN’, short for beneficiary. Further transactions were recorded in June 2004, sent to HSBC accounts in the Labour peer’s name.

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A spokesperson for Lord Mandelson told the Financial Times that he had no record or recollection of receiving any such payments, and did not know if the documents were authentic.

Trevor Phillips said Lord Mandelson declined an invitation to appear on the show on Sunday, but acknowledged that his husband did receive a loan from Epstein in 2009.

Lord Mandelson, who married Mr da Silva in 2023 after a relationship going back three decades, was business secretary and deputy prime minister to Gordon Brown at the time of the alleged payments.

But Mr Phillips said the veteran politician, a friend of his, had told him neither he or his husband have any record or recollection of receiving payments in 2003 or 2004, or “knows whether the documentation is authentic”.

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On Friday, Lord Mandelson issued a statement apologising to the victims of Epstein. He insisted he was ignorant of Epstein’s crimes and “learned the actual truth about him after his death”.

Last year he was sacked from his role as UK ambassador to the US following mounting pressure over his ties to Epstein, who served an 18-month prison sentence from 2008 until July 2009 after pleading guilty to charges of soliciting prostitution.

“I was wrong to believe Epstein following his conviction and to continue my association with him afterwards,” Lord Mandelson said on Friday. “I apologise unequivocally for doing so to the women and girls who suffered.”

Mr Reed added that Lord Mandelson should “give all the assistance they possibly can” to authorities investigating Epstein.

Meanwhile, Sir Keir has called for Andrew Mountbatten-Windsor to be prepared to testify before the US Congress after pictures which appear to show him crouched over an unidentified woman were also featured in the latest document release.

Andrew has been accused of “hiding” from US officials on the House Oversight Committee, which in November asked him to sit for a transcribed interview regarding his connections to Epstein.

Andrew has previously vehemently denied any wrongdoing.