British Prime Minister Keir Starmer’s inner circle was shaken on Sunday after his Chief of Staff, Morgan McSweeney, resigned over his role in recommending Peter Mandelson for a key diplomatic post, despite Mandelson’s links to convicted sex offender Jeffrey Epstein. The move has intensified political pressure on the Labour government and raised fresh questions about leadership and judgment at the top of Downing Street.
McSweeney accepted responsibility for advising the appointment of Mandelson as the UK’s ambassador to the United States, a decision that has since unravelled amid damaging disclosures from the United States.
The controversy escalated after the US Department of Justice released a new batch of files on January 30, shedding further light on Epstein’s interactions with Mandelson. Mandelson was removed from his envoy role in September, but the fresh revelations have reignited scrutiny and sparked a broader political storm for Labour.
In a public statement, McSweeney acknowledged that his counsel to the Prime Minister had been flawed. He said he accepted “full responsibility” for the advice, conceding that the decision had harmed public confidence and undermined trust in political institutions.
The resignation comes at a difficult moment for Starmer, whose government is already facing criticism over multiple policy reversals. Opposition leaders moved quickly to attack the Prime Minister, arguing that accountability should not stop with the departure of a senior aide. Conservative leader Kemi Badenoch said Starmer must answer for what she described as his “terrible decisions”, while Reform UK’s Nigel Farage claimed the episode showed the Prime Minister’s authority was weakening.
Inside Labour, MPs are divided over whether McSweeney’s exit will calm tensions or expose deeper leadership problems. Some have privately suggested the affair reflects systemic failures rather than a single misjudgment.
Starmer had defended McSweeney in the days leading up to the resignation, commending his dedication and service. After accepting his departure, the Prime Minister said it had been “an honour” to work with him, while recognising the gravity of the situation.
Beyond the political damage, the fallout has also taken a legal turn. The Metropolitan Police have opened a criminal investigation following claims that Mandelson shared market-sensitive information during the 2009–2010 financial crisis, when he was a government minister. The probe follows details contained in the newly released US documents.
Mandelson has denied any wrongdoing and insists he acted properly. Nevertheless, the investigation adds further uncertainty to an already volatile episode. Last week, Starmer apologised to Epstein’s victims, saying he had been misled and was unaware of “the depths and darkness” of Mandelson’s relationship with Epstein.
