Lord Mandelson: Response to Humble Address Motion

Rachael Maskell Excerpts

Wednesday 11th March 2026 Commons Chamber

[Darren Jones]

The shadow Chancellor of the Duchy of Lancaster asked me a number of questions, which I shall take in turn. The first was on the severance payment. He asked me why that payment had been made, and who approved it. As I set out in my opening statement, Peter Mandelson was employed as a civil servant, not as a Minister. That meant that on his summary dismissal by the Prime Minister, he had the right to take a claim to the employment tribunal. As we can see in the documents, Peter Mandelson asked for a much larger sum, with the implied threat that there would be legal proceedings, with associated costs. The Government would not have wanted to pay £1 to Peter Mandelson, but they reluctantly agreed to the award, given the contrast between the cost to the taxpayer of employment tribunal legal fees, and the cost of a payment; in the advice, the latter cost would have been higher than the amount that was given. The Prime Minister has since said that Peter Mandelson should either return that money or donate it.

On the question of who approved the severance payment, the House will see from the documents that the request from the Foreign Office was made to the Treasury. The payment was approved, in line with Treasury business rules, albeit reluctantly, and with an express condition that a non-disclosure agreement was not allowed in these circumstances. For the sake of completeness, there is reference in the bundle to that business case requiring my approval. I can confirm to the House that I did not receive that request, or indeed approve it.

The shadow Chancellor of the Duchy of Lancaster asked me about some of the documents, namely about redactions and a register of withheld documents. On the question of a register of withheld documents, I would need to take advice from lawyers in the Metropolitan police before I could say whether these documents are being held for their criminal investigation. I hope that the House is somewhat reassured by the mechanism that we have been able to establish with the Chair of the Public Administration and Constitutional Affairs Committee, which has sight of these documents, albeit in a contained and controlled way. Government redactions to the documents are to protect only the names and contact details of junior civil servants, as is the practice. Other redactions that relate to international security and international relations are done with the approval of the Intelligence and Security Committee.

Lastly, the shadow Chancellor of the Duchy of Lancaster asked me about the report from the Cabinet Office to the Prime Minister. As I said in my opening statement, the Prime Minister did ask subsequent questions of Peter Mandelson following that report being submitted by the Cabinet Office. His advisers at No. 10 undertook to answer those questions. Although that is a document that we cannot publish at this time, the Prime Minister is very clear that he regrets having believed the lies that Peter Mandelson put before him.

[Rachael Maskell (York Central) (Lab/Co-op)]

Clearly, Peter Mandelson’s associations bring a real stench to the appointment process, but I want to know about the business associations, and how they are scrutinised in the process. We know that Peter Mandelson’s public relations company, Global Counsel, had as a client Palantir, which has won lucrative contracts from successive Governments. I want to understand whether the papers demonstrate those associations, and the associations that Peter Mandelson then brought into Government.

[Darren Jones]

My hon. Friend will see from the documents that are being published today that those commercial interests were raised by the Cabinet Office, and that established processes were in place that meant that new members of the civil service had to remove such commercial interests before taking office. There is some commentary in the bundle about the conversation that was had with Peter Mandelson in advance of his appointment as ambassador to the United States, specifically about that question. Having said all that, part of the review that we are taking forward is another look at the business appointment rules, to make sure that the processes that were applied were robust enough in the situation that we are discussing. If we need to further strengthen them, we stand ready to do so.