Lord Peter Mandelson's friendship with Jeffrey Epstein has come under renewed scrutiny after US authorities released millions of new files.
On a Saturday afternoon in June 2009, Nick Butler, a special adviser at 10 Downing St, sent a note to Gordon Brown, the Prime Minister of Great Britain at the time, assessing the state of the economy after the financial crisis.
Beginning “Dear Gordon”, it included a reference to “saleable assets” that the government could potentially cash in on if it needed to. It was copied to a trusted circle of five other people, among them Lord Peter Mandelson, the then first secretary of state and business secretary.
What Brown, Butler and others did not know at the time was that 38 minutes after it was sent, the sensitive memo was apparently forwarded to Jeffrey Epstein by Lord Mandelson, with the caption: “Interesting note that’s gone to the PM.”
Epstein’s interest was immediately piqued. “What saleable assets?” he replied. “Land, property I guess,” responded the Cabinet minister.
When the email exchange surfaced in the latest tranche of the Epstein files earlier this month, Butler said he was “disgusted by the breach of trust, presumably intended to give Epstein the chance to make money”.
Nor did Brown mince his words. He demanded an investigation into the “shocking” disclosure of what he termed highly sensitive and “confidential and market-sensitive information”.
Four days later, Scotland Yard raided Mandelson’s homes in London and Wiltshire, and this week evening came the news that he had been arrested on suspicion of misconduct in public office.
The publication of the Epstein files by the US department of justice lifted the lid on the extent of Mandelson’s relationship with the convicted paedophile and, for the first time, appeared to show that he had been sharing government documents with him while he was in the Cabinet.
Nor are the documents released in the US likely to be the only ones being examined by police.
Darren Jones, the Chancellor of the Duchy of Lancaster, told MPs this week that ministers would publish about 100,000 documents related to Mandelson in the coming weeks.
Prime Minister Sir Keir Starmer had promised to publish documents relating to the vetting of Lord Mandelson before he became British ambassador to the US in February 2025, a job he was sacked from seven months later when the extent of his friendship with Epstein became clear.
Jones said that “a subset of this first tranche of documents is currently subject to the ongoing Metropolitan Police investigation” and cannot be published without jeopardising the police inquiries.
Brown wrote to Chris Wormald, the then Cabinet Secretary, in September 2025 asking the Cabinet Office to investigate allegations, first revealed by The Daily Telegraph, involving Lord Mandelson, Epstein and the 2010 sale of a business by the government-controlled bank RBS. But that proved to be only the beginning of the questions about possible impropriety.
Other emails from May 9, 2010, appear to show Lord Mandelson confirming a €500 billion ($987b) EU bailout deal to Jeffrey Epstein before it was officially announced.
Epstein said to Lord Mandelson: “Sources tell me 500 b euro bailout, almost compelte [sic].” The response, from a redacted address, provided confirmation, saying: “Sd be announced tonight.”
Epstein then asked “are you home”, to which he received a reply at 10.14pm saying: “Just leaving No10.. will call.”
Shortly afterwards, a rescue package worth £624b was announced for the 16 eurozone states struggling to finance their debts.
Separate emails from January 2010 show that Jes Staley, a JP Morgan executive, had asked Epstein for help to arrange a meeting with either Lord Mandelson or Alistair Darling, the then chancellor, at the World Economic Forum in Davos, Switzerland.
Epstein replied: “I’ve set up you and Peter to meet in Davos with Darling.”
Emails also revealed that in December 2009 the peer secretly gave advice to JP Morgan, via Epstein, on how to lobby and “mildly threaten” the UKgovernment to reduce the firm’s tax bill after Lord Darling unveiled a 50% tax on bankers’ bonuses.
It came two days after another email exchange in which Mandelson said he was trying to get the policy changed.
Epstein wrote to him: “Any real chance of making the tax only on the cash portion of the bankers bonus.”
Mandelson replied: “Trying hard to amend. Treasury digging in but I am on case.”
Another email sent to Epstein in 2010, after his conviction for a child sex offence, asked for Epstein’s thoughts when Mandelson was considering buying an apartment in Rio de Janeiro. He said he would be “grateful for helpful thoughts from my chief life adviser”.
The emails also contain evidence that Epstein sent Mandelson $50,000 ($83,772) in 2004 and £10,000 ($22,640) to his husband in 2009. The peer has said he has no record of receiving the larger payment or any recollection of it.
From the day Mandelson was brought back into the Cabinet by Brown – having twice resigned from Cabinet posts in the past over his dealings with wealthy men – Epstein was trying to exert his influence from the other side of the Atlantic.
On October 3, 2008, the day the peer became business secretary, Epstein told him: “Laws need to be changed. It will take time, Gordon thinks like an old man. Old solutions will not work.”
On November 18, 2009, Epstein was plotting a way for Lord Mandelson to become chancellor to replace Alistair Darling.
“As a politician I can’t let you walk away from an Olympic Silver medal,” wrote Epstein, apparently encouraging his friend to push for the job.
When the general election in May 2010 resulted in a hung parliament, Lord Mandelson gave Epstein a running commentary of the frantic secret negotiations between Labour and the Lib Dems to form a coalition and keep the Tories out.
On May 10, Lord Mandelson told Epstein: “Now heading towards Lab-Lib negotiation and poss coalition.
“Prob is I have TB [Tony Blair] and many others saying well done on GB but coalition with Libs is mad and not to do it at any cost. I am exposed to huge pressure.”
Just after lunchtime the same day – a day before Brown stood down – Lord Mandelson told Epstein: “Finally got him to go today …”
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