Former British Ambassador to US leaves Labor Party as ties to sex offender Epstein exposed

Former British government minister Peter Mandelson said he had resigned as a member of Prime Minister Keir Starmer's Labour Party after new reports of his ties with late U.S. sex offender Jeffrey Epstein.

Mandelson, who was fired by Starmer as Britain's ambassador to the United States last year after previous revelations about his connections to Epstein, said he did not wish to cause "further embarrassment" to Labour.

"I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this," Mandelson said in a letter to the Labour Party which was shared with British media.

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Mandelson said he believed that allegations about financial payments to him by Epstein, which were published by British media based on files released by the U.S. Justice Department, were false and said he would investigate them. The Financial Times said the files showed that accounts connected to Mandelson had received $75,000.

"While doing this I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party," the letter said.

Olivia Bailey, a minister in Britain's Department for Education, told Times Radio on Monday that it was "right" Mandelson was no longer a member of the Labour Party.

During the late 1990s, Mandelson had an important role in Labour's electoral success as Tony Blair became prime minister.

Mandelson came under scrutiny last year when U.S. lawmakers released documents including a letter in which he called Epstein "my best pal", leading to his dismissal as Britain's envoy in Washington.

Mandelson also had a turbulent earlier career in domestic politics. In 1998, he quit as trade minister over a loan he received from a fellow minister to buy a house following questions over conflict of interest.

A second stint in the cabinet also ended in a resignation in 2001 when he was forced out over his alleged involvement in a passport scandal involving an Indian billionaire. He was later cleared of acting improperly.

Mandelson, a former European Union trade commissioner, is on leave of absence as a member of the upper house of Britain's national parliament.

Separately, Starmer said on Saturday that Britain's former Prince Andrew should testify before a U.S. congressional committee, following new revelations about his links to Epstein.

-Writing by William Schomberg, additional reporting by Sarah Young and Sam Tabahriti; Editing by Chris Reese/Reuters