US Ambassador to UK pays tribute to Lord Mandelson despite bombshell dossier revealing links to Jeffrey Epstein

However, Mr Stephens heaped praise on Lord Mandelson for his work securing the so-called economic prosperity deal between the two nations.

Speaking at the British Chambers of Commerce trade event in London today, Mr Stephens said: "I give Peter a lot of credit for the EPD deal.

"I actually called him and said, 'Look, you got it'.

"Y'all got to move faster than you're moving.

"And literally the next day, we had a framework that was signed in the Oval Office."

The UK-US economic prosperity deal, which was unveiled in May 2025, establishes general terms of trade, including on market access, tariff concessions and institutional commitments.

It was intended as a precursor for a wider, comprehensive free trade agreement between the two nations.

In the short term, the agreement cut US tariffs down to 10 per cent, leaving the UK in a better position compared to its allies in the European Union.

Mr Stephens also used his speech at the BCC to welcome Sir Christian Turner's appointment in Washington.

He told attendees: "Well, it was a gap between when you had Christian Turner there, whom I know and like, and he's doing a good job."

Sir Christian, who previously served as the Foreign Office's political director, was appointed as Lord Mandelson's replacement last month.

But Lord Mandelson's sacking in September 2025 sparked major political problems for Sir Keir.

The Prime Minister was told about Lord Mandelson’s relationship with Epstein, with an internal Whitehall investigation admitting his friendship came with “reputational risks”.

Sir Keir has since apologised to the victims of the prolific sex offender, adding: "It was me that made the mistake."

The PM today rebuffed suggestions that his ex-chief of staff Morgan McSweeney conveniently had a mobile phone containing messages with Lord Mandelson stolen.

He said: "Well, the phone was stolen. It was reported to the police.

"There's a transcript of the call in which Morgan McSweeney gives his name, his date of birth, the details of the phone and the police confirm that it was reported.

"Unfortunately, there are thefts like this. It was stolen. It was reported at the time and the police have acknowledged and confirmed that that is what happened."

Mr McSweeney, who was a close ally of Lord Mandelson, resigned from No10 last month over the Labour peer's appointment.

Lord Mandelson remains under a Scotland Yard investigation on suspicion of misconduct in public office.

Mr Stephens's comments at the BCC also suggested Lord Mandelson slowed potential UK-US negotiations on a wider trade deal.

Nevertheless, the two negotiating teams remain at loggerheads over Scotch whisky exports and the pharmaceutical industry.

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