Lord Peter Mandelson, a former Labour cabinet minister and briefly the UK ambassador to the United States, was arrested Monday afternoon at his home in Camden, north London, on suspicion of misconduct in public office. The Metropolitan Police's specialist crime unit took him to Wandsworth police station for questioning after executing search warrants at addresses in Camden and Wiltshire.

The 72-year-old peer was released on bail in the early hours of Tuesday morning, around 2 a.m. GMT, pending further inquiries. A police spokesperson confirmed: "A 72-year-old man arrested on suspicion of misconduct in public office has been released on bail pending further investigation." Deputy Assistant Commissioner Hayley Sewart noted the probe would be complex, requiring extensive evidence gathering.

The investigation, opened earlier this month, stems from documents released by the US Department of Justice on January 30 amid the Jeffrey Epstein case. Allegations claim that while serving as business secretary from 2008 to 2010, Mandelson shared market-sensitive information with Epstein. This includes 2009 emails forwarding a confidential assessment by an adviser to then-Prime Minister Gordon Brown on policy measures and asset sales, discussions on a proposed tax on bankers' bonuses, and confirmation of an imminent eurozone bailout package shortly before its 2010 announcement. Files also reference $75,000 in transfers from Epstein to accounts linked to Mandelson or his partner, which he reportedly does not recall. He faces no sexual misconduct charges.

Mandelson's lawyers at Mishcon de Reya described the arrest as based on a "baseless suggestion" that he planned to flee abroad, despite agreeing to a voluntary interview next month. They stated there is "absolutely no truth" to flight risk claims and demanded police evidence, emphasizing his cooperation to "clear his name."

A veteran Labour figure and close ally of Tony Blair, Mandelson held senior roles, including twice as a cabinet minister, resigning amid past scandals. Prime Minister Keir Starmer appointed him US ambassador in late 2024, but he was dismissed in September 2025 after Epstein ties emerged beyond what he disclosed. Starmer later apologized, leading to the resignation of his chief of staff, Morgan McSweeney, and Mandelson's exit from the Labour Party and House of Lords, though he retains his title. His firm, Global Counsel, entered administration.

The arrest has intensified scrutiny on Starmer's government. Conservative leader Kemi Badenoch called the images "an image which I think is going to stay with us for many, many years." Education Secretary Bridget Phillipson said the government plans to release appointment documents in early March, but must avoid jeopardizing the probe. Liberal Democrat leader Ed Davey demanded vetting files. US politicians have urged Mandelson to testify in a congressional Epstein inquiry.

The Met is consulting the Crown Prosecution Service as the investigation continues.