British Prime Minister Keir Starmer signaled Monday he would not heed calls to resign, even from the leader of his party in Scotland, after a second senior aide quit in two days over the appointment of Peter Mandelson as ambassador to the United States despite his ties to convicted sex offender Jeffrey Epstein.
Under intensifying pressure over the diplomatic selection, Starmer attempted to project confidence and unity, but a demand from Anas Sarwar, Scottish Labour leader, for him to step down and the departure of communications chief Tim Allan did little to quell questions about his judgment and ability to govern. Allan’s resignation followed Sunday’s exit of Morgan McSweeney, Starmer’s closest aide and chief of staff, who said he took responsibility for advising the prime minister to appoint Mandelson to Britain’s top diplomatic role in Washington despite knowing about his relationship with Epstein.
Starmer addressed staff at his Downing Street office Monday morning, seeking to raise spirits and encourage unity while again expressing regret over the appointment that has consumed his government for weeks. “We must prove that politics can be a force for good,” he told them, according to officials present. He praised McSweeney as “a friend” who helped transform the Labour Party and deliver the July 2024 election victory that produced one of the largest parliamentary majorities in modern British history. “I believe it can. I believe it is. We go forward from here. We go with confidence as we continue changing the country.”
But Sarwar, speaking in Scotland where Labour support has collapsed since the election, said with a heavy heart he had to defend Scotland and call for a leadership change in London. “The distraction needs to end, and the leadership in Downing Street has to change,” he told a press conference in Glasgow. “We cannot allow the failures at the heart of Downing Street to mean the failures continue here in Scotland,” he added, pointing to crucial Scottish Parliament elections scheduled for May.
Read Also: UK Ex-Ambassador Mandelson Quits Labor Over Epstein Links
Recent polls show Labour trailing in third place behind the Scottish National Party and the populist Reform UK party in Scotland, a dramatic reversal from the party’s strong performance in last year’s general election.
In response, a Downing Street spokesperson said Starmer had “a clear five-year mandate from the British people to deliver change, and that is what he will do.”
With his statement, Sarwar became the most senior Labour figure to call for Starmer’s resignation, amplifying a febrile mood in Westminster as the government battles its gravest crisis since taking office 18 months ago.
British government borrowing costs rose Monday, reflecting investors’ concerns that political instability could lead to a more left-wing Labour leader willing to borrow and spend more, or trigger snap elections that might install a different party.
The turmoil centers on Starmer’s December 2024 decision to appoint Mandelson, a veteran politician who served in Tony Blair and Gordon Brown’s governments, as ambassador despite knowing he had maintained contact with Epstein after the financier’s 2008 conviction for soliciting prostitution from a minor.
Recent document releases by the U.S. Department of Justice revealed the depth of that relationship, showing Mandelson shared market-sensitive government information with Epstein while serving as business secretary during the 2008 financial crisis and beyond. Emails disclosed last month showed Mandelson alerting Epstein to planned tax policies and regulatory decisions that could affect financial markets. In December 2009, Mandelson wrote to Epstein saying he was “trying hard to amend” a proposed tax on bankers’ bonuses, according to released correspondence.
Read Also: Maxwell To Refuse Congressional Questions, Lawyer Says
Starmer fired Mandelson in September 2025 after the initial revelations emerged. The Foreign Office said it is reviewing an exit payment estimated between £38,750 and £55,000 made to Mandelson after only seven months in the ambassadorial role. Mandelson resigned from the Labour Party last Sunday and from the House of Lords on Wednesday. Police raided two of his properties Friday as part of an investigation into misconduct in public office.
Through his lawyers, Mandelson has said he “did not discover the truth about Epstein until after his death in 2019” and is “profoundly sorry that powerless and vulnerable women and girls were not given the protection they deserved.”
Allan, who had served as director of communications for only five months after joining in September 2025, said Monday he was stepping down “to allow a new No 10 team to be built.” His departure surprised colleagues and Westminster observers, as he had not been blamed for the Mandelson appointment and was considered to be performing effectively under difficult circumstances. He previously served as an adviser to Tony Blair from 1992 to 1998 and worked alongside Mandelson during the New Labour years, though officials said his proximity to the disgraced diplomat was not the primary reason for his resignation.
Starmer is expected to address Labour members of parliament Monday evening amid anger over the scandal. Several backbenchers, largely existing critics, have called on him to resign, though senior cabinet members have defended his leadership.