Starmer-Mandelson latest: Boss of firm founded by disgraced Lord quits amid Epstein scandal

The prime minister’s allies have warned that a leadership coup by Angela Rayner could trigger a general election.

One Labour figure who served on Sir Keir Starmer’s front bench told The Telegraph: “Presumably Angela Rayner, if she got elected, would have a completely different agenda.

“If you come in with a completely different agenda then the country legitimately says, ‘We didn’t vote for this’.”

Responding to names of Labour MPs calling for Morgan McSweeney to be sacked, Luke Akehurst MP said: “I'm not sure Morgan McSweeney should lose much sleep over this small collection of my PLP colleagues, all policy rebels on various issues, calling for his departure.”

The MP for North Durham added: “The same names repeatedly take the opportunity to share their hot takes with the media.”

Karl Turner MP was quick to fire back, saying: “I don’t think McSweeney will give a monkeys, Luke. But our PM should. And so should you. We aren’t some sort of fast food franchise. We are the Labour Party.

“Getting clever like this about those of us that have got the bottle to speak says more about you than it does about me.”

Labour MP John McDonnell has said he “signed and wholeheartedly support[s]” Nadia Whittome’s Early Day motion calling for a public inquiry into the British public figures and Institutions linked to Epstein.

What is yet to truly sink in is the allegation that the infamous financier effectively found himself with a seat slap-bang in the middle of the UK government, says Chris Blackhurst:

Recap:

Sir Keir Starmer has said he is sorry for believing Peter Mandelson’s “lies” and for appointing him to the role of Britain’s ambassador to the US, as he tries to weather the crisis that has threatened to end his premiership.

Following a barrage of criticism from his own MPs on one of the most turbulent days of his leadership, the prime minister began a planned speech about community cohesion with a frank apology to the victims of paedophile sex trafficker Jeffrey Epstein, as he addressed growing anger over the way he has dealt with the issue.

Athena Stavrou, Kate Devlin & Millie Cooke report:

Nadia Whittome MP has slammed briefings which “smear” the Labour MPs who say the prime minister’s position is unsustainable

Taking to social media, the MP for Nottingham East said: “Briefings smearing the character of Labour MPs who are stating the obvious (that the PM’s position is untenable), instead of defending the indefensible, are utterly disgraceful.”

She added: “I was a trustee for a child sexual abuse charity before I was elected. I’ve spoken about this subject as an MP and tried to have discussions with ministers about how we can do better.

“I would be saying exactly the same if a leader from my wing of the party had behaved in this way - as those briefing anonymously should know - because this is bigger than internal party politics.”

The lobbying firm co-founded by Peter Mandelson has cut all ties with the former US ambassador and announced the departure of its boss Benjamin Wegg-Prosser.

Global Counsel said Lord Mandelson no longer has a stake in the business nor any influence over it.

Co-founder and chief executive Mr Wegg-Prosser said he was stepping down as it was "time to draw a line" between the firm and the "actions" of Lord Mandelson.

The business had been coming under pressure over its association with Lord Mandelson and his relationship with paedophile financier Jeffrey Epstein.

Global Counsel said in a statement that it had reached an agreement to fully divest the peer's shares in the company, therefore ending any connections with him.

Its chairman, Archie Norman, said: "With the completion of this process today, Peter Mandelson no longer has any shareholding, role or association with Global Counsel and has no influence over the firm in any capacity."

Mr Wegg-Prosser said: "With the completion of the divestment of Peter Mandelson's stake in the business, I feel that now is the time to draw a line between Global Counsel and his actions."

He has been replaced as head of the firm by its managing director Rebecca Park.

Lord Mandelson co-founded the London-based firm with Mr Wegg-Prosser in 2010 after Labour lost the general election.

It is understood that Barclays has cut ties with Global Counsel amid the scrutiny.

The latest tranche of files has been greeted more like a ‘sexpionage’ thriller than the kind of broiling injustice that should make us riot, says Richard Godwin.

Read more here:

Our political correspondent Athena Stavrou reports:

Downing Street would not be drawn on whether Peter Mandelson would hand over private emails as part of the document release.

When asked if Mandelson was complying with the government’s efforts to gather documents on his vetting process, a spokesman said: “I can't speak for Lord Mandelson.

We are obviously assessing the documentation that is relevant now and falls within the motion.”

They added: “There's private email addresses and things which the government wouldn't have access to.”