READ MORE: 'Who can we tax so we can pay more benefits?': What Starmer's former aide said was discussed at every Labour meeting READ MORE: Mandelson flew into a panic over his failure to kill a Mail on Sunday storySee more Daily Mail on Google - save us as a Preferred SourceBy JASON GROVES, POLITICAL EDITOR and CLAIRE ELLICOTT and MARTIN BECKFORD, POLICY EDITOR Published: 00:32 BST, 2 June 2026 | Updated: 01:43 BST, 2 June 2026
The Mandelson Files exposed the toxic infighting at the heart of Labour.Hundreds of documents showed ministers and officials sniping at each other over the fate of Keir Starmer's 'beleaguered' Government. The chaos was compounded by accusations of a cover-up, with more questions about what the 1,500-page file dump failed to reveal. The files also expose the extraordinary extent to which Peter Mandelson, at that point twice drummed out of government by past scandals, was still pulling the strings in Labour via his close friendship with the PM's then chief of staff Morgan McSweeney.The light shone on what goes on behind the scenes included one calamitous confession in which the now Work and Pensions Secretary Pat McFadden complained that Labour MPs were constantly demanding to know 'who can we tax in order to pay benefits to others?'Tory leader Kemi Badenoch said: 'Pat McFadden has said in private what he and the Prime Minister deny in public. They are no longer the Labour Party, they are the Welfare Party.'In other revelations, Sir Keir, Rachel Reeves, Ed Miliband and Angela Rayner all face criticism from senior Labour colleagues.But the dossier, compiled at a cost to the taxpayer of more than £1million, sheds little light on the Prime Minister's disastrous decision to appoint Mandelson as ambassador to the United States. The Peter Mandelson files which were released on Monday exposed the toxic infighting at the centre of the Labour government (Mandelson is pictured earlier this year) The files saw Work and Pensions Secretary Pat McFadden (pictured with Mandelson) complain that Labour MPs were constantly demanding to know 'who can we tax in order to pay benefits to others?' And they also exposed the extraordinary extent to which Mandelson was still pulling the strings in Labour via his close friendship with the PM's then chief of staff Morgan McSweeney (pictured in September 2025)Opposition MPs last night accused ministers of a cover-up. Tory frontbencher Alex Burghart said it 'beggars belief' that there is 'no documentary trace at all' of the PM's decision.Sir Keir appointed Mandelson despite being warned he had maintained a 'particularly close' friendship with Jeffrey Epstein even after the notorious paedophile was jailed for child sex offences.But the files contain no minutes of the meeting in December 2024 when Sir Keir opted to appoint Mandelson – or any record of his thinking.The row risks reopening the controversy that came close to triggering the PM's downfall earlier this year.Leadership hopeful Andy Burnham seized on the opportunity, warning the disclosures would 'further damage people's confidence in our political system'.On another damaging day for Labour, it was revealed:Mandelson wrote then-Foreign Secretary David Lammy a letter saying the Government would 'never regret' the decision to bring him back;He gossiped at length about what others in government thought of Sir Keir, including Mr McSweeney who was said to see a 'cycle [of] advance/buckle,' thanks to the PM's many U-turns;Mandelson was offered a briefing with the head of MI6 before his security vetting had been completed;He accused potential leadership challenger Wes Streeting of having a 'mid-life crisis' after he criticised Israel's 'war crimes' in Gaza;The former New Labour spin doctor engineered his start date in Washington to allow him to take up a potentially lucrative speaking engagement in China;The disgraced peer refused to hand over his phone to officials compiling the dossier for parliament;Cabinet Office minister Darren Jones struggled to fend off accusations of a cover-up after admitting his own messages to Mandelson had been lost;Cabinet minister Nick Thomas-Symonds joined Mr McSweeney in saying he was unable to publish his messages with Mandelson because his phone had been stolen;Deputy PM Mr Lammy further distanced himself from the appointment, saying he had suggested former Tory chancellor George Osborne be given the job.The release followed an extraordinary vote in parliament in February ordering the publication of all documents relating to Mandelson's appointment and his time in office, including messages exchanged with ministers and officials.Mr Jones said the documents amounted to the largest-ever 'transparency' release by government. Pressure continued to mount on Sir Keir Starmer over the appointment of Mandelson as Britain's ambassador to the US (the pair are pictured together in 2025)But the papers were riddled with redactions, making vital evidence impossible to follow. And they contained just one page of bland exchanges between Mandelson and the Prime Minister who appointed him.Mr Burghart told MPs: 'There are acres and acres of white space, a constellation of asterisks... there are a huge number of redactions.'Although we have a huge number of documents, it is clear that very many are missing. Some have been withheld, some have been lost, and it is clear that some have probably been destroyed.'But the files did reveal the fear and loathing at the heart of the Labour government –and the extraordinary influence wielded by Mandelson.During one exchange, the disgraced Labour peer rails at the Government's 's**t' communications, describing No 10 as 'bereft and beleaguered', and in need of a 'complete revamp'.He says the public are 'crying out for leadership' and ministers should be (dare I say it), (be) behaving in a more Trumpian risk-taking and daredevil way', and he reveals that Mr McSweeney had 'no faith in Keir's ability to change No 10'.Mandelson also advised Mr McSweeney on the appointment of an economic adviser for Sir Keir amid tensions with Rachel Reeves. He warned that Gordon Brown had 'got it in for' the PM and was using Ms Rayner to undermine him.
