London. British Prime Minister Keir Starmer has lost his chief of staff following backlash over the appointment of Peter Mandelson as ambassador to Washington.
Morgan McSweeney resigned on Sunday and accepted responsibility for advising Starmer to approve the appointment. He said the decision harmed public trust and damaged confidence in politics.
McSweeney stated that appointing Mandelson was a mistake. He added that he fully accepts the consequences of that advice.
Senior Figure in Labour’s Rise to Power
McSweeney played a key role in Labour’s landslide election victory in July 2024. He helped shift the party toward a more centrist agenda after years of internal division.
He also maintained a close relationship with Mandelson, a veteran Labour figure who influenced party strategy during the Tony Blair era.
Exit Payment and New Allegations
The resignation followed confirmation from the Foreign Office that it is reviewing Mandelson’s severance payment. Reports estimate the payout at between £38,750 and £55,000 after seven months in office.
Documents released by the United States Justice Department have renewed scrutiny of Mandelson. The records suggest he shared confidential UK government information with Jeffrey Epstein while serving as a minister.
The disclosures include material from the 2008 financial crisis period. They have triggered a police investigation into alleged misconduct in public office.
Pressure Grows on the Prime Minister
Cabinet minister Pat McFadden described the appointment as a serious error. However, he said responsibility lies with Mandelson for putting himself forward.
Opposition leaders focused their criticism on Starmer. Conservative leader Kemi Badenoch said the Prime Minister must take responsibility for his decisions. Liberal Democrat leader Daisy Cooper said leadership accountability cannot be passed to advisers.
Reform UK leader Nigel Farage claimed the controversy could weaken Labour ahead of upcoming elections.
Internal Concerns Within Government
Reports suggest Deputy Prime Minister David Lammy opposed Mandelson’s appointment from the start. Sources say he raised concerns due to Mandelson’s known links to Epstein.
Labour came to power just over 18 months ago. The party now faces criticism over immigration, economic growth, and rising living costs. Recent polls show Reform UK leading Labour by double digit margins.
Mandelson’s Response
Mandelson has stepped down from the House of Lords. He is among several high profile figures named in the latest Epstein document releases.
Epstein died in a US jail in 2019 while awaiting trial on sex trafficking charges. Authorities ruled his death a suicide.
In a statement issued through his legal representatives, Mandelson said he regrets believing Epstein’s claims of innocence. He added that he is deeply sorry vulnerable women and girls were not protected.
What Happens Next
Investigations into Mandelson continue. The government’s review of his exit payment remains ongoing.
McSweeney’s resignation has increased pressure on Starmer as the political fallout grows.


