Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Thursday 05 February 2026 12:52 pm  |  Updated:  Thursday 05 February 2026 3:51 pm

Starmer apologises to Epstein victims over Mandelson role as Badenoch calls on PM to quit

By: Ali Lyon

Add as a preferred source on Google
Prime Minister Keir Starmer addressing media at a public event, wearing a dark suit and tie, gesturing confidently
Keir Starmer promised to "mainline AI into the veins"

Keir Starmer has vowed to stay on as Prime Minister, denying knowing the “depth and darkness” of Peter Mandelson’s relationship with Jeffrey Epstein when he appointed the disgraced politician as US ambassador.

Speaking at an event in east Sussex, the Prime Minister apologised to Epstein’s victims saying he was “sorry for having believed Mandelson’s lies and appointing him”.

“It has been publicly known for some time that Mandelson knew Epstein, but none of us knew the depth of the darkness of that relationship,” he said.

Starmer addressed the scandal – the latest and gravest of his time in office and which has left his premiership hanging by a thread – at the start of his speech. He told reporters he had asked the former deputy Prime Minister to outline the nature of his ties to the convicted sex trafficker – and if he had ever accepted gifts or money from him – during the recruitment process for the diplomatic role in 2024.

“The information now available makes clear that the answers he gave were lies,” he said.

“He portrayed Epstein pras someone he barely knew. And when that became clear and it was not true, I sacked him. Such deceit is incompatible with public service.”

The address had been arranged to focus on a fresh package for high streets that ministers have dubbed ‘Pride in Place’. Under the pilot initiative – worth up to £800m – locals in 40 areas across England will be handed up to £20m to improve their local area.

Read more

‘Don’t feel great’: Treasury minister irked by Darren Jones and Mandelson texts

Darren Jones speaking at a conference podium, addressing business professionals, dressed in a formal suit and tie.

Starmer wants Mandelson documents released ‘as soon as possible’

But it was waylaid by this week’s revelations of the true extent of Mandelson’s relationship with Epstein. In what has become one of the biggest political scandals of the century, the so-called Epstein files have revealed the former politician was in regular contact with the convicted paedophile. They show Mandelson sharing highly market sensitive information as business secretary, visited him after a 2008 conviction for soliciting prostitution from a minor, and that husband accepted regular payments the financier.

The revelations have left Mandelson facing a Metropolitan Police investigation, and is set to be stripped of his peerage.

They have also plunged Starmer’s administration into disarray. Several Labour MPs have suggested he should quit, and has been forced by Parliament to publish documents relating to his appointment to the UK’s most eminent ambassadorial role.

Kemi Badenoch added her name to the growing ranks of politicians calling for the Prime Minister to step down. In a hastily arranged news conference, the leader of the opposition urged Labour backbenchers to call a no confidence vote in Starmer.

“Britain is not being governed,” she said. “That is what this speech is about. We need a better government. Labour was voted in with a huge majority. They have a majority of about 160. And they can’t get anything is done. Something is wrong.”

The Prime Minister added that he hoped the documents would be released “as quickly as possible” to Parliament, but said the police had prevented him from releasing information that may prejudice their investigation or any future trial.

The developments led to a sell-off in UK government bonds, known as gilts, and caused the pound to slide on speculation over the Prime Minister’s future. Sterling dropped 0.5 per cent on the dollar and Britain’s long-dated borrowing costs – which had been falling in the early stages of the year – climbed to their highest since last November.

Read more

Mandelson Files add insult to injury, but the patient was already beyond saving

Peter Mandelson

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • Badenoch
  • epstein files
  • Gilts
  • Jeffrey Epstein
  • mandelson
  • Metropolitan Police
  • Peter Mandelson
  • Starmer
  • Sterling

Trending Articles

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

  • Revealed: Secret Treasury plan to tax State Pension before it is paid out

  • As it happened: Stocks recover after markets rocked by tech-sell off; US claims ‘good foundations’ of Iran deal

  • Burnham’s new chief of staff ran City firm advising Thames Water and rival Heathrow bidder

  • As it happened: FTSE 100 scrapes into green after Segro’s surge; Oil at pre-war levels after Trump snaps at industry

More from City PM

  • ‘Don’t feel great’: Treasury minister irked by Darren Jones and Mandelson texts

    Politics
    Darren Jones speaking at a conference podium, addressing business professionals, dressed in a formal suit and tie.
  • Mandelson Files add insult to injury, but the patient was already beyond saving

    Politics
    Peter Mandelson
  • Starmer resigns as Prime Minister

    Politics
    Business conference attendees networking at a corporate event with banners and presentation screens in the background
  • Place your bets: Will Starmer stay in No 10 longer than England stay in the World Cup?

    Football
    Keir Starmer World Cup
  • Pat McFadden: I have not apologised to Rachel Reeves over ‘tax to pay benefits’ text

    Politics
    Pat McFadden speaking at a podium during a press conference, addressing current general news topics.
  • As it happened: How Starmer resigned and when Streeting backed Burnham

    Politics
    Keir Starmer appearing nervy during political event, wearing a suit and tie, addressing an audience with a concerned expre...
  • Starmer will resign, Trump says

    Politics
    Number 10 Downing Street entrance with iconic black door and brass letterbox, symbolizing UK Prime Ministers official resi...
  • John Healey has delivered a fatal blow to Starmer’s premiership

    Opinion
    Defence secretary John Healey is leading calls for further investment in the sector.

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM. All rights reserved.
About · Contact · Terms · Privacy