The Government would have known about the emails sent by Lord Mandelson to Jeffrey Epstein after the financier was convicted of child prostitution, a minister has suggested.

Lord Mandelson is under mounting pressure to resign after it was claimed he worked with convicted paedophile Jeffrey Epstein on a £1billion deal involving a taxpayer-owned bank.

The prime minister is facing increasing demands to sack his controversial pick to lead the UK’s diplomatic efforts in the US