Keir Starmer frantically tried to spread the blame for his disastrous decision to make Peter Mandelson US ambassador today as he grovelled for his job.

The PM painted himself as victim of the New Labour architect’s ‘lies’, claiming he believed assurances he ‘barely knew’ paedophile financier Jeffrey Epstein – despite a litany of reports already having exposed their relationship.

Scrambling to save his own political skin, Sir Keir stressed he ‘understands the anger and frustration’ of MPs, urging them to ‘remain focused on what we were elected for’. 

Sir Keir attempted to throw MI5 and MI6 under the bus, suggesting they had failed to flag the ‘depth and darkness’ of the ties between the two men. 

He also insisted documents about the vetting process will be published ‘as quickly as possible’ – pointing the finger at the police for the delay. 

But the premier has been warned the ‘clock is ticking’ on his leadership after an extraordinary Commons humbling yesterday, which left even loyalists admitting he is effectively finished. 

Kemi Badenoch said it was now a ‘matter of when’ not if the PM will go, urging restive Labour MPs to talk to the Tories about triggering a vote of no confidence in the government – although that seems unlikely as it could trigger a general election. 

The meltdown was sparked when Sir Keir admitted at PMQs that he installed Lord Mandelson in the crucial US job despite knowing he stayed friends with Epstein after his conviction for sex offences.

The government then tried to argue that details of Mandelson’s vetting process would need to be withheld for ‘national security’ and ‘international relations’ reasons. 

But within hours Sir Keir was forced to U-turn by furious Labour MPs – including his former deputy Angela Rayner – threatening to vote for a Tory disclosure motion. 

The cross-party Intelligence and Security Committee will now decide what material is released, with the chair warning ’embarrassment’ is not enough for evidence to be suppressed.

On another rollercoaster day of turmoil: 

• Bank of England governor Andrew Bailey said he was ‘shocked’ by allegations Mandelson sent Epstein secret details of the government’s response to the Credit Crunch; 
• Markets took fright with the Pound down 0.4 per cent against the dollar and UK government borrowing costs rising; 
• Experts warned a full-blown political crisis could see investors heap pain on so-called gilts.

Keir Starmer gave a speech in East Sussex this morning, as he was warned the ‘clock is ticking’ on his leadership. Even loyalists are saying he is effectively finished

Sir Keir bizarrely claimed he believed Lord Mandelson ‘barely knew’ Jeffrey Epstein when he appointed him US ambassador at the end of 2024 – even though pictures such as this had been widely reported. The image depicts the peer celebrating Epstein’s birthday at the financier’s Paris flat, apparently in 2007 

In an extraordinary Commons moment yesterday, Sir Keir admitted that he appointed Lord Mandelson as US ambassador despite knowing he stayed friends with Jeffrey Epstein (pictured together) after the financier was jailed

The tranche of documents released by the US includes a confidential No10 email seemingly sent on by Lord Mandelson to Epstein at the height of the Credit Crunch, talking about the UK government having ‘saleable’ assets 

Trying to cool the frenzy at an event in Hastings, East Sussex, this morning, Sir Keir said he believes most people go into public life out of ‘duty’ and ‘service’ but ‘that is not why Mandelson did it’.

‘In recent days, serious allegations and serious evidence has emerged concerning Mandelson’s conduct, including his relationship with Epstein, a convicted sex offender,’ he said.

‘It had been publicly known for some time that Mandelson knew Epstein, but none of us knew the depth and the darkness of that relationship.’

The PM said Lord Mandelson was asked directly about the nature of his relationship with Epstein, and it is ‘clear that the answers he gave were lies’.

He insisted the peer had made out he ‘barely knew’ Epstein during his vetting. 

He added that he wanted to release documents relating to Lord Mandelson’s appointment as ambassador to Washington DC on Wednesday, but the police had ‘advised that releasing certain information now could risk prejudicing a future investigation or legal process’.

Sir Keir went on: ‘The victims of Epstein have lived with trauma that most of us can barely comprehend, and they’ve had to relive it again and again.

‘I want to say this: I am sorry, sorry for what was done to you, sorry that so many people with power failed you, 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.

‘But I also want to say this: in this country, we will not look away, we will not shrug our shoulders, and we will not allow the powerful to treat justice as optional.

‘We will pursue the truth. We will uphold the integrity of public life, and we will do everything within our power and in the interests of justice to ensure accountability is delivered.

‘That is what the public expects. That is what the victims deserve, and it is what I will do.’

Sir Keir said after an initial ‘due diligence’ assessment of Mandelson there was ‘security vetting carried out independently by the security services, which is an intensive exercise that gave him clearance for the role, and you have to go through that before you take up the post’.

‘Clearly, both the due diligence and the security vetting need to be looked at again,’ he said.

‘I’ve already strengthened the due process. I think we need to look at the security vetting, because it now transpires that what was being said was not true. And had I known then, what I know now, I’d never have appointed him in the first place.’

Pushed on what he would say to Labour MPs who now believe his position is untenable, Sir Keir said: ‘I understand their anger and frustration. I am angry and frustrated like them…

‘We must remain focused on what we were elected into government for.’

Sir Keir was adamant he will not be resigning, saying: ‘I was elected in on a mandate in 2024 to change the country for the better.’ 

Downing Street sources played down the prospects of papers being released today, although it is still possible. Sir Keir has been forced to commit to publishing a bewildering array of material, including all messages between Mandelson and No10 ministers and aides, and details of his severance when sacked as ambassador. 

Even normally loyal Labour MPs have questioned how long Sir Keir can hang on with his authority in tatters. 

Senior MPs warned the situation will ‘not end well’ for Sir Keir and the ‘clock is ticking’, while ex-Cabinet minister Lord Hutton suggested his time in power is coming to a close.

There are growing demands for chief aide Morgan McSweeney to be axed over the Mandelson debacle – which ignited again after the US release of millions of Epstein emails showing the depth of their relationship.

Former minister Karl Turner told Times Radio that Labour is in a ‘crisis situation’ and Sir Keir must ‘get rid of those advisers who have given terrible advice to him’ over weeks and months.

‘If McSweeney continues in No10 Downing Street, I think the PM is up against it in a way he doesn’t need to be,’ he said. 

However, Sir Keir is said to recognise that his own fate is tied to that of his closest adviser. He voiced ‘confidence’ in Mr McSweeney yesterday, and Housing Secretary Steve Reed said this morning that ‘of course’ the aide will stay in post.  

Allies will also take solace from the difficulties facing potential replacements. Ms Rayner has huge support on the Labour benches, but is not thought to have settled her tax issues with HMRC after being forced to resign in September.

Meanwhile, Health Secretary Wes Streeting is widely regarded as on manoeuvres, but was previously close to Lord Mandelson.

Another oft-touted contender, Andy Burnham, was blocked by Sir Keir from standing in the Gorton & Denton by-election and so does not have the immediate platform to mount a challenge.

Some MPs have been talking up the credentials of defence minister Al Carns, although he has only been in Parliament since 2024.

Ed Miliband would also be in the frame as a replacement should Sir Keir be engulfed imminently, but has insisted he does not want the job. 

Rumours of ministerial resignations to enforce the PM’s departure have also yet to come to pass. 

Labour rules require one candidate to get nominations from 80 MPs in order to mount a challenge.  

One senior Labour source told the Daily Mail: ‘Would any credible challenger go before the by election or before May? That’s not tempting.’ 

Sir Keir’s allies echoed his criticism of the intelligence services for failing to raise red flags about Mandelson.

Housing Secretary Steve Reed said during a round of interviews: ‘The vetting process was the same vetting process that has been in place for years. In this case it has clearly failed.

‘So we’ll want to look at that vetting process to find out why was it that Mandelson’s deception was not exposed to that point because he should never have been appointed. 

‘If the (security) forces had come up with more information that showed what had been really going on, he would never have become the UK ambassador, but he did.’

Mr Reed told Sky News: ‘The person at fault here is not the Prime Minister or his team.

The government was forced to U-turn by furious Labour MPs – including his former deputy Angela Rayner- threatening to vote for a Tory disclosure motion

Health Secretary Wes Streeting is widely regarded as on manoeuvres, but was previously close to Lord Mandelson

Another oft-touted contender, Andy Burnham, was blocked by Sir Keir from standing in the Gorton & Denton by-election and so does not have the immediate platform to mount a challenge

Some MPs have been talking up the credentials of defence minister Al Carns, although he has only been in Parliament since 2024. Mr Carns was in Norway yesterday as the row escalated

‘It is Peter Mandelson who lied, manipulated and deceived everybody, including the media, actually, because he was on the media an awful lot as well. He conned everybody.

‘What matters is what you do when you find out what’s gone wrong. And the Prime Minister couldn’t have been more decisive. He sacked Peter Mandelson at 5am in the morning as US ambassador months ago.’

Mr Reed said he felt like he had ‘been punched in the stomach’ when he found out about Lord Mandelson’s dealings with Epstein from the documents released by US authorities.

Lord Mandelson has denied the documents show he broke any laws or acted for personal gain. He has repeatedly said he regrets his friendship with Epstein.

Mrs Badenoch told a press conference in Westminster that said she would be ‘surprised’ if Sir Keir was still in No10 by Christmas.

‘I think Keir Starmer is only going to get into more trouble. I think Morgan McSweeney is probably toast. I’m amazed he’s still in the job,’ she said. 

Asked if Sir Keir would last until the end of the year, Mrs Badenoch said Labour MPs did not ‘want him anymore’. ‘It’s a matter of when now I think,’ she added.

Nigel Farage said it was the ‘biggest scandal in British politics for over a century’.

Speaking at an event at the International Convention Centre Wales in Newport, the Reform leader said: ‘It isn’t just some sort of Partygate but a bit bigger.

‘This involves sex, it involves money, it involves the royal family. It involves the leaking of market sensitive, confidential information.

‘I suspect its pretty close, in many ways, to breaching the Official Secrets Act. This is far bigger than the Profumo scandal 60 years ago. This is the biggest scandal in British politics for over one century.’

Mr Farage said he believed Morgan McSweeney, the chief of staff for Prime Minister Sir Keir Starmer, would be ‘gone pretty quickly’.

‘I don’t know how long Starmer will last as PM,’ he joked.

‘Indeed, I’m very worried about it. I want him to stay forever.’

Nigel Green of deVere group warned of an ‘acute’ risk to Sterling and UK government borrowing costs if Sir Keir is forced out.

‘If the Mandelson affair brings down the Prime Minister, which is something a growing number of commentators are discussing, the consequences would not stop at Downing Street,’ he said. 

‘Markets would immediately focus on the UK bond – or gilt – market.’

Mr Green said Rachel Reeves would likely lose her job alongside, undermining Labour’s main appeal of continuity’.