How the Epstein scandal has shaken the British government to its core

A picture


It was the one scandal that Donald Trump seemed unable to shake.No matter his best efforts to convince his supporter base that there was nothing to see here, the demands for the administration to release every document it had on the child sex offender Jeffrey Epstein only grew.Yet even after the most shocking revelations in the latest drop about Trump’s inner circle – involving everyone from Elon Musk to the Maga honcho Steve Bannon to the commerce secretary, Howard Lutnick, not to mention Trump himself – so far, it seems, the administration has escaped largely unscathed.Nobody has resigned, nobody has been fired, and certainly there is no sign that the US president is going anywhere.There is, however, one political establishment that the Epstein scandal has shaken to its core – in the UK, where revelations in the files have sent a shock wave through the governing party that threatens to topple it entirely.

Although the former Prince Andrew, the brother of King Charles, is the best known Briton to entangle himself in Epstein’s web, there is another figure who has brought the scandal back home with him.Peter Mandelson is another man with “prince” in his title, though his “Prince of Darkness” nickname was coined to reflect his reputation for being a master of the political dark arts.Few people in British politics have had careers as colourful and turbulent as his.Few people have managed to return from the political wilderness in the way he has.There may be no coming back from this latest scandal.

Police in London launched a criminal investigation this week into allegations that Mandelson – who most recently was the British ambassador to the US, but whose history at the heart of British politics is long and laden with scandal – shared sensitive information with Epstein while serving as the government minister for business in 2009.Mandelson, 72, is accused of leaking government emails and market-sensitive information in the aftermath of the financial crash – including alerting Epstein that the British government would soon act to prop up the flagging euro.Separately, Mandelson and his now-husband apparently received several payments totalling at least $75,000.The whiff of selling government secrets is acrid.He has now quit the ruling Labour party, but the bleeding may not stop there: Keir Starmer, the prime minister, faces serious questions about why someone as clearly risky as Mandelson was ever allowed back into the fold.

To many in the UK, Mandelson is the long-running embodiment of the New Labour movement, having held high-profile roles in the Labour party over four decades, from strategist to government minister.Perhaps most crucially, he is perceived as a key figure during the remarkable run of electoral success under Tony Blair’s centrist turn in the 1990s that helped bring Labour back in from the cold of the Conservative party’s 18-year grip on power.In an attempt to distance himself – and explain why he hired Mandelson despite having some knowledge of his links to Epstein – Starmer told parliament in London on Wednesday that the politician had “betrayed our country”.“He lied repeatedly to my team, when asked about his relationship with Epstein before and during his tenure as ambassador,” the British leader said.“I regret appointing him.

If I knew then what I know now, he would never have been anywhere near government.”Yet Mandelson had already been forced out of government twice before: in 1998, when he resigned as trade and industry secretary after failing to disclose that he secretly received £375,000 to buy a house in London from a colleague who was being investigated over his business dealings; and in 2001, when he stepped down as Northern Ireland secretary after being accused of pulling strings to get a British passport for an Indian billionaire who had pledged £1m towards the Millennium Dome project that Mandelson was heading.Starmer brought him back to advise on how to win the 2024 election anyway, and after Labour’s landslide victory the prime minister chose Mandelson to head the British embassy in Washington.Within a year, Mandelson was fired after emails were published showing he maintained a friendship with Epstein.The latest cache of Epstein documents released by the US Department of Justice makes the previous allegations seem almost quaint by comparison.

Still, with Mandelson being such a long-running presence in the Labour party, the impact of his fall from grace has been widely and deeply felt,Wes Streeting, the health secretary, who has made public his own designs on the leadership, said on Wednesday that he felt personally shaken by the revelations about Mandelson, who had mentored and backed him as a rising parliamentarian,“I cannot state strongly enough how bitterly that betrayal feels for those of us in the Labour party,” he said, “who feel very personally let down and also feel that he, as well as betraying two prime ministers, betraying our country and betraying Epstein’s victims, has fundamentally betrayed our values and the things that motivate us and the things that brought us into politics, which is public service and national interest, not self-service and self-interest,”Even his own MPs have warned that Starmer’s days as prime minister are numbered, particularly after he admitted in parliament that he knew about Mandelson’s friendship with Epstein before his appointment,“The most terminal mood is among the super-loyal,” said one MP, while another said of Starmer’s admission: “You could feel the atmosphere change; it was dark.

”But while calling Starmer’s judgment into question, the scandal also appears to have set alight a more fundamental anger at his leadership.His internal critics accuse him of lacking a political and intellectual core, enabling others to manipulate him to their own ends.The tale of how Morgan McSweeney, Starmer’s chief adviser, persuaded him to appoint an already compromised character to one of the most sensitive jobs in government, only to see that decision go spectacularly but foreseeably wrong, is held up as another piece of evidence against him.All this discontent plays out as Nigel Farage, the Trump supporter whose hard-right Reform party has led polls for months, looms in the wings.The main message that permeates to voters not following the intrigue in Westminster could be simply that the rot in the British establishment runs deep.

Epstein killed himself in a jail cell in 2019 while awaiting trial on US federal sex-trafficking charges, but his death has done nothing to quell the questions about the high-profile and rich elite he mingled with on both sides of the Atlantic.Richard Branson referred in an email to Epstein’s “harem” (a spokesperson for the Virgin Group saying this week that he “regrettably” repeated the word Epstein used to describe three women members of his team).Andrew Mountbatten-Windsor had already been stripped of his titles last year after the posthumous publication of a book by Virginia Giuffre, an Epstein accuser who died last April, but the latest photos, showing him smiling and kneeling on all fours over an unidentified woman on the floor, are a further blow to the British monarchy’s respectability.(Mandelson himself served in a royal position until just recently, on the privy council, a largely ceremonial committee of senior officials that advises the king.)In the US, Todd Blanche, the deputy attorney general (and Trump’s former personal lawyer), has declared that last Friday’s dump of roughly 3.

5m files – out of an estimated 6m total – means prosecutors’ review into the Epstein case “is over”, though survivors beg to disagree.In the UK, the fallout may have just begun.This article was amended on 6 February 2026 to reflect a response from Richard Branson’s Virgin Group.
technologySee all
A picture

Amazon reveals plans to spend $200bn in one year the day after Bezos guts Washington Post

Amazon announced plans to spend $200bn on artificial intelligence and robotics this year, the latest tech giant to vow fresh enormous investments in the artificial intelligence arms race.The news of the investment comes one day after the Washington Post, owned by Amazon founder Jeff Bezos, announced it was cutting approximately a third of employees.Amazon also reported $213bn in revenue on Thursday. The fourth-quarter earnings of the e-commerce and cloud-computing giant came in slightly below Wall Street estimates even as sales and growth surged.Amazon will increase capital spending to $200bn this year from $125bn, CEO Andy Jassy said in a press release

A picture

Bitcoin loses half its value in three months amid crypto crunch

Bitcoin’s price sank to $63,000 on Thursday, its lowest level in more than a year, and half its all-time peak of $126,000, reached in October 2025. A months-long dip in cryptocurrency prices has tanked shares of companies that have increasingly invested in bitcoin, exacerbating broader stock market jitters.Bitcoin rode a high during Donald Trump’s ascent to the presidency in 2024 and throughout 2025; its price steadily increased as the president made one industry-friendly move after another. Crypto’s largest currency hit $100,000 for the first time in December 2024 and even rose to a record high of $126,210.50 on 6 October, according to Coinbase

A picture

‘Orwellian’: Sainsbury’s staff using facial recognition tech eject innocent shopper

A man was ordered to leave a supermarket in London after staff misidentified him using controversial new facial recognition technology.Warren Rajah was told to abandon his shopping and leave the local store he has been using for a number of years after an “Orwellian” error in a Sainsbury’s in Elephant and Castle, London.He said supermarket staff were unable to explain why he was being told to leave, and would only direct him to a QR code leading to the website of the firm Facewatch, which the retailer has hired to run facial recognition in some of its stores. He said when he contacted Facewatch, he was told to send in a picture of himself and a photograph of his passport before the firm confirmed it had no record of him on its database.“One of the reasons I was angry was because I shouldn’t have to prove I am innocent,” Rajah said

A picture

How cryptocurrency’s second largest coin missed out on the industry’s boom

US crypto developer Danny Ryan submitted a proposal in November 2024 to Vitalik Buterin, the founder and symbolic leader of Ethereum, a prominent blockchain powering the world’s second-largest cryptocurrency. Ryan, who had worked for seven years at the Ethereum Foundation (EF), Ethereum’s de facto governing body, suggested that Ethereum could be on the cusp of an era-defining shift.Since its founding in 2014, the foundation had prioritized technical upgrades and had avoided centralizing power while its user base was growing, but Ethereum had now grown up, and the cryptocurrency world around it had grown up, too. The EF could now “exercise a stronger voice” without compromising its ethos of decentralization, Ryan said – and he was open to leading that charge if appointed as the foundation’s new executive director.Ryan told the Guardian that he could see how political tides were changing “overnight”, which informed his proposal

A picture

What does the disappearance of a $100bn deal mean for the AI economy?

Did the circular AI economy just wobble? Last week it was reported that a much-discussed $100bn deal – announced last September – between Nvidia and OpenAI might not be happening at all.This was a circular arrangement through which the chipmaker would supply the ChatGPT developer with huge sums of money that would largely go towards the purchase of its own chips.It is this type of deal that has alarmed some market watchers, who detect a whiff of the 1999-2000 dotcom bubble in these transactions.Now it seems that Nvidia was not as solid on this investment as had been widely believed, according to the Wall Street Journal. Negotiations had not progressed, with Jensen Huang, Nvidia’s chief executive, privately emphasising that the deal was “non-binding” and “not finalised”

A picture

Google Pixel Buds 2a review: great Bluetooth earbuds at a good price

Google’s latest budget Pixel earbuds are smaller, lighter, more comfortable and have noise cancelling, plus a case that allows you to replace the battery at home.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.The Pixel Buds 2a uses the design of the excellent Pixel Buds Pro 2 with a few high-end features at a more palatable £109 (€129/$129/A$239) price, undercutting rivals in the process