Lord Peter Mandelson “should never have been appointed” as Britain’s American Ambassador a senior government official has said.

Chief Secretary to the Prime Minister Darren Jones addressed Parliament as the first tranche of files surrounding Lord Mandelson’s appointment to Washington were released on Wednesday afternoon.

It followed questions of Prime Minister Keir Starmer’s judgement after the depth of Lord Mandelson’s continued friendship with Jeffrey Epstein were revealed in the so-called ‘Epstein Files’ resulting in the peer’s sacking last September.

Newly released documents on Lord Mandelson’s appointment revealed that the Prime Minister was warned about a “reputational risk” prior to appointing him as ambassador.

Lord Peter Mandelson leaving his north London home on the day documents relating to his appointment as US ambassador were released by the government. Photo: Jeff Moore/PA.

placeholder image — Lord Peter Mandelson leaving his north London home on the day documents relating to his appointment as US ambassador were released by the government. Photo: Jeff Moore/PA.

A due diligence report that went to Keir Starmer flagged that Lord Peter Mandelson maintained ties to Jeffrey Epstein after he was convicted of procuring an underage girl and stayed at his house while he was imprisoned.

In a section entitled Relationship With Jeffrey Epstein, the report said: “After Epstein was first convicted of procuring an underage girl in 2008, their relationship continued across 2009-2011, beginning when Lord Mandelson was business minister and continuing after the end of the Labour government.

"Mandelson reportedly stayed in Epstein’s House while he was in jail in June 2009."

The due diligence report concluded: “To note – general reputational risk.”

In a statement to the Commons on Wednesday afternoon, Mr Jones said: “The victims of Epstein have lived with trauma that most of us can barely comprehend. They’ve had to relive it again and again, and they have had to see accountability delayed and too often denied.

“We must all learn this hard lesson and a culture which dismisses women’s experiences far, far too often and too easily, Peter Mandelson should never have been appointed, and the Government will comply with the humble address.”

But Mr Jones said whilst the documents pointed to public reports of the ongoing relationship between Epstein and Mandelson – who was Hartlepool’s MP from 1992 until 2004 – the advice “did not expose the depth and extent of their relationship”.

The PM decided to sack Lord Mandelson after the release of further files by Bloomberg and then the United States Department for Justice.

Mr Jones added: “Peter Mandelson should never have been afforded the privilege of representing this country, and I reiterate for the House that the Prime Minister deeply regrets taking him at his word, it was a mistake to do so.”

But Conservative MP Alex Burghart, Shadow chancellor to the Duchy of Lancaster, said: “The Prime Minister knew all he needed to know.

"It was on him. It’s on him now. He let his party down. He let his country down. I very much doubt that either will trust him again.”