Lord Mandelson released on bail following arrest over allegations of misconduct in public office

"He was arrested at an address in Camden on Monday, February 23 and was taken to a London police station for interview.

"This follows search warrants at two addresses in the Wiltshire and Camden areas.

"We are not able to provide further information at this stage to prevent prejudicing the integrity of the investigation."

The former ambassador to the US has been accused of passing sensitive information to paedophile financier Jeffrey Epstein during his time as Business Secretary.

He was appointed to the ambassadorial role in February 2025, but was sacked in September after Downing Street said new information about his relationship to Epstein had come to light.

Footage has shown Lord Mandelson returning to his home alone in the dead of night.

He was seen being led out of his home by plain clothes police officers on Monday.

Two of his properties have also been searched in connection with the allegations.

Lord Mandelson appeared in emails published in the Department of Justice's Epstein files dated 2009 and 2010, after the prolific paedophile had become a convicted sex offender.

In one email, he appeared to pass on an assessment by former Prime Minister Gordon Brown's adviser of potential policy measures, including an "asset sales plan".

He also appeared to discuss a tax on banker's bonuses and confirm an upcoming bailout package the day before it was announced.

The Liberal Democrats have called for the release of files relating to Andrew Mountbatten-Windsor's appointment as trade envoy after he was arrested earlier this week, also accused of sharing sensitive information to Epstein.

The Government has said it expects to release documents relating to Lord Mandelson's appointment as US ambassador to be released in March.

Chief Secretary to the Prime Minister, Darren Jones, said some of the correspondence between the Government and the peer will be delayed "because of the Metropolitan Police interest".

The Prime Minister has said the files will prove that the former business secretary lied during the vetting process about his connections to Epstein.

Lord Mandelson has said he has "no recollection" of receiving payments of £55,000 from Epstein between 2003 and 2004 as noted in the files.

Epstein is said to have paid for Lord Mandelson's husband Reinaldo Avila Da Silva to take osteopathy courses in 2009.

US lawmakers have urged the former Labour peer to testify in Congress.

Mr Mountbatten-Windsor has denied any wrongdoing over his links to the paedophile financier, but has not directly responded to the latest allegations.

Lord Mandelson has repeated affirmed that he has not acted criminally and that he did not act for personal gain.