Lord Peter Mandelson has been released on bail hours after being arrested on suspicion of misconduct in public office.
The arrest relates to allegations that emerged from the Epstein files, suggesting the former Labour minister and peer may have leaked Downing Street emails to paedophile financier Jeffrey Epstein while serving as business secretary.
The Metropolitan Police attended Mandelson’s London home on Monday afternoon, taking the 72-year-old to a police station for questioning before releasing him on bail pending further investigation.
The investigation follows the publication of emails from 2009, released by the United States Department of Justice as part of the Epstein files.
These emails reportedly included an assessment from one of then-prime minister Gordon Brown’s advisers concerning potential policy measures, which Mandelson is alleged to have passed on to Epstein.
Critics have raised concerns that the information may have been market-sensitive, although Lord Mandelson has consistently denied any wrongdoing in relation to the allegations.
Earlier this month, police executed search warrants at two of Mandelson’s properties in Wiltshire and Camden, reflecting the seriousness of the ongoing investigation. In a statement, the Metropolitan Police said: “Officers have arrested a 72-year-old man on suspicion of misconduct in public office.

He was arrested at an address in Camden on Monday, 23 February and has been taken to a London police station for interview. A 72-year-old man arrested on suspicion of misconduct in public office has been released on bail pending further investigation.”
The Crown Prosecution Service has not yet offered early investigative advice regarding the allegations. The Cabinet Office previously referred material to police after reviewing the Epstein files, suggesting that certain safeguards may have been compromised.
The arrest has sparked renewed scrutiny of Prime Minister Sir Keir Starmer, who faced criticism for appointing Mandelson as the UK’s ambassador to the United States despite his known links to Epstein. Tory leader Kemi Badenoch called the arrest a “defining moment” for Starmer and questioned the judgment behind the appointment.
On Monday afternoon, MPs were told that the first tranche of documents relating to Mandelson’s ambassadorial appointment would be released in early March. However, the prime minister’s chief secretary, Darren Jones, confirmed that some correspondence between Downing Street and Lord Mandelson would be withheld due to the ongoing police investigation.
“It remains the case that a subset of this first tranche of documents is currently subject to the ongoing Metropolitan Police investigation.
This includes correspondence between No 10 and Lord Peter Mandelson, in which a number of follow-up questions were asked,” Jones said. He added that the documents would be released as soon as possible in consultation with the police.
Jones also indicated that a small portion of the material engages matters of national security and international relations, which falls under the purview of the Intelligence and Security Committee. “We are working with the committee to establish processes for making this material available to them, and we’re very grateful to the committee in advance of their important contribution to reviewing these documents,” he said.
Critics from the Conservative Party accused the government of delaying the release unnecessarily. Tory MP Mike Wood told the Commons: “Careful work must not become a euphemism for managed delay.”
Lord Mandelson’s career has been turbulent in recent months. He was sacked as ambassador to the US last year and resigned from the House of Lords in January. The allegations, combined with his links to Epstein, have raised questions about accountability and judgment in public office.
Baroness Jacqui Smith, minister for women and equalities, defended Starmer’s handling of the situation. “As soon as Keir Starmer understood what the reality of Peter Mandelson’s relationship with Jeffrey Epstein was, he sacked him, in the middle of the night actually. So I think that’s an important area of judgement,” she told The Independent.
The arrest and subsequent release on bail highlight ongoing concerns over former ministers’ conduct when interacting with individuals linked to criminal activity. The emails at the centre of the investigation are alleged to have included market-sensitive or policy-related information, which could constitute misconduct in public office if proven.
Legal experts have noted that bail allows Lord Mandelson to cooperate with authorities while the investigation continues without pre-trial detention.
The case has also sparked a political debate in Westminster.
Badenoch accused Labour MPs of attempting to distract from the Mandelson affair by focusing on other parliamentary investigations, including inquiries into Andrew Mountbatten-Windsor.
“Labour MPs are jumping on investigations into Andrew Mountbatten-Windsor to distract from the Lord Mandelson affair, which is far more significant from a parliamentary perspective,” she told The Independent.
Opposition MPs have criticized the government for what they describe as cautious handling of the document release.
“The public deserves to know how someone with links to Jeffrey Epstein was appointed to such a sensitive role,” Mike Wood said. “Careful work must not become an excuse for managed delay.” Supporters of Starmer argue that his swift decision to sack Mandelson once evidence of his continued relationship with Epstein emerged demonstrates proper governance and accountability.
The release of Mandelson on bail also allows authorities to continue examining the documents and communications without unnecessarily restricting a former senior official.
Experts have highlighted that bail does not imply guilt or innocence but ensures that the investigation can proceed in a structured and legal manner. “Being released on bail does not indicate innocence or guilt. It simply allows the investigation to continue while ensuring the individual can cooperate with authorities,” said a legal analyst familiar with the case.
As police continue their inquiries, the government has confirmed that the full release of documents related to Mandelson’s tenure as ambassador will be carefully managed to avoid compromising national security or ongoing investigations.
The outcome of the investigation will likely shape discussions about ministerial accountability and transparency, as well as public trust in government appointments.
Lord Mandelson’s situation remains under close scrutiny, with both political and public interest high. The Epstein files, coupled with allegations of sharing confidential government information, underline the challenges of ensuring integrity in public office.
For Mandelson, the coming weeks on bail will be critical as investigators examine evidence and determine whether formal charges will be pursued.
The episode has also intensified debates about the role of former ministers and the potential consequences of their private associations. Critics argue that the Mandelson affair demonstrates the importance of thorough vetting and oversight when appointing officials to sensitive diplomatic positions.
Meanwhile, supporters of the prime minister highlight the speed with which action was taken once concerns were confirmed, emphasizing the need to balance transparency with the requirements of an active criminal investigation.
With the release on bail, Lord Mandelson is legally able to respond to the investigation while the authorities gather additional evidence.
The broader political implications of the case continue to reverberate through Westminster, with questions over judgment, ethics, and public trust likely to remain at the forefront of parliamentary and media discussions in the coming weeks.
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