London, February 5, 2026 —
Nigel Farage, leader of the Reform UK party, has described a scandal involving former Labor minister Peter Mandelson and his links to Jeffrey Epstein as the most serious political scandal in Britain in over a century.
- Peter Mandelson provided confidential government documents to Jeffrey Epstein in 2009 while serving as Minister of Business.
- Mandelson has since distanced himself from the Labor Party and resigned his seat in the House of Lords.
- The scandal is impacting UK financial markets, with the pound and government bonds facing pressure.
- Prince Andrew Mountbatten-Windsor is also facing renewed scrutiny over his ties to Epstein.
A scandal surrounding former Labor minister Peter Mandelson and his connections to the late convicted sex offender Jeffrey Epstein has escalated, prompting calls for further investigation and contributing to instability in UK financial markets. The controversy centers on revelations that Mandelson, while serving as Minister of Business in 2009, shared confidential government documents with Epstein during a period of global economic crisis, according to reports from EFE.
Nigel Farage, leader of the right-wing populist Reform UK party, characterized the situation as exceeding even the severity of the 1963 Profumo affair, a major political and espionage scandal during the Cold War. “It is not just a kind of ‘Partygate’, but something a little more serious. This involves sex, money, the royal family. It involves the leaking of confidential and sensitive information,” Farage said at an event at the Wales International Convention Center in Newport.
What This Means for You
The unfolding scandal has already begun to impact the UK economy, with investors expressing concern over the potential for political instability. A rise in 10-year bond yields to 4.59%, the highest level since November, indicates increased risk aversion among investors. Further developments could lead to continued volatility in financial markets and potentially affect consumer confidence.
In response to the revelations, Mandelson, who was dismissed last year as ambassador to the US, has taken steps to distance himself from the Labor Party and relinquished his seat in the House of Lords. The government has also initiated proceedings to revoke his title of ‘lord’. However, these actions have not quelled the growing public and political outcry.
Farage stated the controversy is “very close, in many ways, to breaching the Official Secrets Act.” The Profumo affair involved a government minister’s affair with a model who was also linked to a Soviet spy, raising national security concerns. John Profumo ultimately resigned after admitting to misleading Parliament.
The current situation also implicates Prince Andrew Mountbatten-Windsor, brother of King Charles III, due to the extent of his links with Epstein, who, according to U.S. case documents, provided the prince with minors trafficked for sexual exploitation. King Charles III withdrew all noble titles and honors from his brother last year, requiring him to relocate from Royal Lodge.
The government has committed to releasing all documents related to the decision to appoint Mandelson as ambassador to the US, responding to pressure from within the Labor Party regarding the appointment given his known ties to Epstein.
The scandal’s impact extends beyond politics, with UK funding costs reaching their highest point since November, signaling investor unease.
