Lord Peter Mandelson released on bail after arrest on suspicion of misconduct in public office

The Metropolitan Police confirmed a 72-year-old man was released pending further investigation, and Mandelson was spotted returning to his home in London at around 2am on Tuesday morning.

He was arrested at an address in Camden on Monday and taken into a police station for an interview.

The force launched an investigation into the former MP earlier this month over allegations he passed on market-sensitive government documents to the paedophile financier Jeffrey Epstein while he was business secretary.

Lord Mandelson has not publicly commented on the Epstein files, but the BBC reports that it understands he believes he has not acted criminally and was not motivated by financial gain.

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Mandelson became the UK ambassador to the US in February 2025, but was sacked in September after details of his relationship with Epstein emerged.

Emails in the Epstein files suggest Mandelson passed on an assessment by former prime minister Gordon Brown’s advisor of potential policy including an “asset sales plan” to Epstein in 2009. Other emails suggest he discussed taxes on bankers’ bonuses and confirmed the imminent bailout package for the Euro the day before it was announced in 2010.

The Met Police announced it was looking into the allegations earlier this year, and two of Mandelson’s properties were searched by police.

After the emails were published, Mandelson resigned his membership of the Labour Party and announced his intention to stand down from the House of Lords.

Morgan McSweeney, Downing Street’s chief of staff, and Tim Allan, the former head of communications, both lost their jobs in the wake of the scandal.

Scottish Labour leader Anas Sarwar then called for the Prime Minister to resign.

On Monday, Mandelson’s arrest was branded the "defining moment” of Sir Keir Starmer’s premiership by UK Conservative leader Kemi Badenoch.