It comes after the Cabinet Office today made a referral to the Metropolitan Police amid allegations he passed market-sensitive information to the paedophile financier.
The prime minister told this morning’s meeting of cabinet that Lord Mandelson had “let his country down”, and Downing Street said he had tasked officials with drafting legislation that would allow the former ambassador’s peerage to be removed “as quickly as possible”.
Tap here for live coverage as our team combs through the Epstein files
Although Mandelson will cease to be a member of the House of Lords from midnight, he will not automatically lose his the title of ‘Lord’, which is separate from membership of the upper chamber.
The New Labour grandee was awarded a life peerage in 2008, but had been on a leave of absence from 31 January last year following his appointment as UK ambassador to Washington – a post from which he was sacked in September after more details about his links to Epstein emerged.
Stepping down from the upper chamber is the latest development in the dramatic fall from grace for the former cabinet minister, having resigned his Labour membership on Sunday to avoid causing the party “further embarrassment” after documents in newly released files appeared to show he received $75,000 from Epstein.
The latest batch of documents released by the US Department of Justice includes three apparent bank statements detailing three money transfers of $25,000 each from the financier to a Peter Mandelson in 2003 and 2004.
It is unclear whether the payments ever made it into any named accounts.
Lord Mandelson, who was the Labour MP for Hartlepool when the files suggest the payments were made, has denied any record or recollection of the payments and questioned their authenticity.
He has previously said in a statement: “I want to say loudly and clearly that I was wrong to believe him [Epstein] following his conviction and to continue my association with him afterwards. I apologise unequivocally for doing so to the women and girls who suffered.”
After resigning from Labour on Sunday, he said he wanted “to repeat my apology to the women and girls whose voices should have been heard long before now”.
Emails have also emerged that appeared to show Lord Mandelson sharing information with Epstein from inside government while he was serving as business secretary and de facto deputy prime minister in Gordon Brown’s government.
After the publication of the latest batch of Epstein files at the weekend, Metropolitan Police Commander Ella Marriott said in a statement on Monday: “Following this release and subsequent media reporting, the Met has received a number of reports relating to alleged misconduct in a public office.
“The reports will all be reviewed to determine if they meet the criminal threshold for investigation.
“As with any matter, if new and relevant information is brought to our attention we will assess it, and investigate as appropriate.”
Lord Mandelson has been contacted for comment.
He had also appeared in a picture found in the latest Epstein files wearing only his underwear and a T-shirt, which Sky News has confirmed was taken in the paedophile’s Paris flat.
A spokesperson for Lord Mandelson previously told Sky News: “No one can say who or where the photo was taken. Lord Mandelson has absolutely no idea or indeed whether it has any connection to Epstein at all.”
He said he felt “regretful and sorry” about weekend revelations linking him to “the understandable furore surrounding” Epstein, who took his own life in prison in 2019.
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