Starmer Aide Quits After Mandelson U.S. Role Backlash

Keir Starmer’s chief of staff resigns amid fallout over Peter Mandelson’s controversial appointment and Epstein-linked revelations.

By Published: February 9, 2026 6:36 AM EST Updated: March 27, 2026 4:25 AM EDT 75920
Keir Starmer and Peter Mandelson during a press event amid political crisis
Peter Mandelson and Keir Starmer | Credit: Politico

UK Prime Minister Keir Starmer’s chief of staff has resigned after an escalating row over the appointment of Peter Mandelson as Britain’s US ambassador.

Morgan McSweeney resigned on Sunday, admitting it was his advice that led to Starmer hiring Mandelson in 2024. In a statement, McSweeney said the decision was an error that undermined public trust and inflicted damage on both the government and Labour Party.

The resignation came after Mandelson faced questions about his past connections to Jeffrey Epstein following the release of new documents in the United States. The documents indicate Mandelson provided Epstein with sensitive government information during the 2008 financial crisis, while he was business secretary of the UK.

Starmer has faced fierce criticism over his judgment. His office said the government will publish internal emails and records about Mandelson’s appointment, asserting that these would demonstrate officials were “lied to.” The prime minister also apologized this week but said he took Mandelson’s assurances at the time  and did not realize the extent of his friendship with Epstein.

Opposition figures said the blame rests with Starmer. Kemi Badenoch said that the prime minister had questions to answer for what she described as a serious error of judgement.

One of Britain’s most senior Labour figures and a former cabinet minister, Mandelson has not been charged with any offence. But most recently police have searched his London home as well as another associated address, in connection with an investigation into possible misconduct in public office. Authorities stressed that the case does not involve sexual offense allegations and remains ongoing.

Mandelson had been stripped of his ambassadorial role last September following previous concerns over his links to Epstein. Critics say the new release of documents simply adds to suspicions why he was hired in the first place.

The U.S. filings also mention payments made by Epstein in the early 2000s to accounts associated with Mandelson or his boyfriend. It would be the second time in his career that Mandelson has resigned from a high-profile job over conflicts of interest.

In his statement, Starmer praised McSweeney for overseeing Labour’s recent election success but made no mention of the Mandelson highlights.

Business Outstanders brings you sharp insights on tech, business, entrepreneurship, law, crypto, and more. We uncover what’s next. Stay updated, sign up for our newsletter and be part of the future!

Read exclusive insights, in-depth reporting, and stories shaping global business with Business Outstanders. Sign up here.

Emily Wilson is a business strategist and editor at Business Outstanders, where she covers small business growth, entrepreneurship, and leadership. With over 3 years of experience in business content and strategy, she has helped hundreds of entrepreneurs navigate growth challenges through research-backed, actionable insights. Follow her work on LinkedIn.

Feedback: Email contact@businessoutstanders.com to point out mistakes, provide story tips.