Mandelson-Starmer latest: Morgan McSweeney resigns as PM’s chief of staff over US ambassador scandal

Morgan McSweeney has resigned as the Downing Street chief of staff over his role in the appointment of Lord Peter Mandelson as US ambassador.

Mr McSweeney is reported to have pushed for the appointment last year, despite concerns from the Donald Trump administration and red flags raised by the security services over the former Labour grandee’s links to China and the convicted paedophile financier Jeffrey Epstein.

In a statement announcing his resignation, he said he took “full responsibility” for the advice to prime minister Sir Keir Starmer to appoint Lord Mandelson.

Sir Keir Starmer has responded to the resignation of his chief of staff, saying: “It’s been an honour working with Morgan McSweeney for many years. He turned our party around after one of its worst ever defeats and played a central role running our election campaign.”

It comes after reports that a five-figure exit payment was given to Lord Mandelson when he was sacked as US ambassador. The payment is now being reviewed by the Foreign Office.

The financial settlement is estimated to be between £38,750 and £55,000 before tax and other deductions, accounting for three months of pay, according to The Sunday Times.