by Xinhua writers Zhao Jiasong, Larry Neild
LONDON, Feb. 6 (Xinhua) -- Fresh disclosures in the United States related to late financier Jeffrey Epstein have reignited political scrutiny in Britain, pushing Prime Minister Keir Starmer onto the defensive over his decision to appoint Peter Mandelson as ambassador to Washington.
At an event in Hastings on Thursday, Starmer said he had underestimated the seriousness of Mandelson's past association with Epstein and apologized directly to victims connected to the case.
"I want to say this. I am sorry, sorry for what was done to you, sorry that so many people with power failed, sorry for having believed Mandelson's lies and appointed him, and sorry that even now you're forced to watch this story unfold in public once again," the prime minister said.
The trigger for Britain's latest bout of turmoil came from across the Atlantic. On Jan. 30, the U.S. Department of Justice said it had published millions of additional pages in compliance with the "Epstein Files Transparency Act," taking the total disclosure to nearly 3.5 million pages, alongside thousands of videos and images. The scale of the release has widened scrutiny of Epstein's connections and revived political pressure in multiple countries.
In Britain, the controversy intensified as Mandelson's name circulated in coverage of newly surfaced material. British police have opened a criminal investigation into Mandelson over alleged misconduct in public office, including questions related to the handling of sensitive information.
Mandelson, 72, previously served as a senior cabinet minister under former prime ministers Tony Blair and Gordon Brown. He was appointed ambassador to Washington in early 2025 but was dismissed by Starmer after seven months as renewed questions about his past emerged.
Experts noted that for the Labour Party, the case has landed on an already fragile pledge to restore standards after years of public distrust. The backlash has not been limited to the opposition and has also stirred unease within Labour, fueling questions over whether Starmer still commands sufficient authority to lead.
John Bryson, an expert in economics and politics at the University of Birmingham, described the scandal as a continuing political drag. "The Epstein scandal continues to complicate politics in both Britain and the United States," he said.
"The difficulty for Starmer, and this Labour government, is that the latest Mandelson scandal is too horrendous to brush away, and reconciliation will only come with complete transparency and for all those involved to accept responsibility and to resign from both the office they hold and from parliament," Bryson added.
On Tuesday, London's Metropolitan Police confirmed it had opened a criminal investigation into Mandelson over alleged misconduct in public office. The probe followed the receipt of reports, including a referral from the British government, related to allegations involving the handling of market-sensitive information.
Downing Street has sought to demonstrate cooperation with investigators while attempting to contain the political damage. Starmer has said Mandelson misled his team, and the government has signaled it will publish material related to the appointment process as pressure mounts for greater transparency over how the decision was made.
Market reaction has been cautious rather than convulsive, but it has been noticeable enough to concern officials mindful of how quickly confidence can erode.
Steve Nolan, an economist at Liverpool John Moores University, said there had been "a little bit of worry in some of the currency markets and bond markets," pointing to rising long-term borrowing costs and a weaker pound following the latest revelations.
Ian Scott, an expert in U.S. politics and history at the University of Manchester, warned that government borrowing is particularly sensitive to political turbulence.
"Investors in gilts are looking for reassurance that stability is the government's watchword," he told Xinhua, adding, "This sorry tale is anything but a representation of stability."
With police inquiries ongoing and newly released documents still under scrutiny, the controversy shows little sign of fading, leaving Labour to manage both political and market fallout. ■