Senior Conservative MPs have demanded Sir Keir Starmer release the files relating to the appointment of Peter Mandelson in full, demanding the former US Ambassador hand back his £75,000 payout.
Lord Mandelson demanded a full payout of his contract as the UK’s Ambassador to the US, totalling more than £500,000, in his severance pay talks, emails showed.
Instead, he was awarded £75,000, funded by taxpayers.
A member of the HR directorate at the Foreign Office appeared to praise Chief People Officer Mark Power in October last year for managing to "get this settlement down this low with minimal fuss".
Shadow Chancellor of the Duchy of Lancaster Alex Burghart said: "These documents just confirm what we already knew. Keir Starmer was plainly aware of the relationship between Mandelson and the world’s most notorious paedophile when he appointed him as US ambassador.
"What’s worse, the Government gave him a payoff of £75,000 despite his resignation in disgrace. No one will be able to trust the Prime Minister’s judgment again.
"The Labour Government need to come clean on what documents have been hidden from view and whether WhatsApps or private emails have been deleted or hidden.
"The Government must release the files in full and make Mandelson repay the money."
Jeremy Corbyn says he finds Labour's 'faux outrage' over Mandelson to be 'astonishing'
Jeremy Corbyn was a critic of Mandelson during his time as Labour leader
|PARLIAMENT.TV
Jeremy Corbyn has said he finds the "faux outrage" from his former party colleagues in Labour over the Mandelson files to be "rather astonishing."
The Your Party Parliamentary leader told the Commons: "[Mandelson] was a man closely involved with the current Prime Minister, the leadership of the Labour Party ever since Tony Blair and ever since 2020. They must have known his character.
"Will we know every piece of advice that was given to the PM by his officials and by the Foreign Office and specifically will there be a record of any verbal briefing given to the Prime Minister before he made this calamitous decision to send Mandelson to Washington.
"I think the public need to know why the Prime Minister felt the need to go ahead with the decision."
Keir Starmer will make 'no apologies' over devolved spending
Sir Keir Starmer has said he will "make no apologies" for spending in devolved areas following outcry over a leaked Downing Street memo.
Plaid Cymru leader Rhun ap Iorwerth accused the Prime Minister of a “direct assault” on devolution as he raised the memo during First Minister’s Questions in the Senedd on Tuesday.
Sent in December to all members of the Cabinet, the correspondence said: "Each of us will maintain a professional and respectful working relationship with our counterparts in devolved governments.
"However, an overly deferential or laissez-faire approach to devolved government engagement almost inevitably creates political challenges or misses positive opportunities.
"We should be confident in our ability to deliver directly in those nations, including through direct spending, even when devolved governments may oppose this."
At PMQs today, Sir Keir said: "I’m not going to make any apologies for spending more money in Scotland, or in Wales, to improve people’s lives.
"There has been record investment under this Government into Scotland. The question is, where’s the money gone, John (Swinney)?"
Peter Mandelson was offered 'higher tier' briefings before vetting process finished
Lord Peter Mandelson was offered "higher tier" briefings from the Foreign Office before he had finished the formal vetting process to become British ambassador to Washington, Government documents reveal.
An email to Lord Mandelson from the Foreign Office on December 23 2024, three days after his appointment, stated: "On practicalities the most important first steps will be: (1) completing medical clearance; (2) completing Dip Passport forms; and (3) going through the vetting process.
"These will be most important in unlocking progress within the system."
It added: "We’ll brief you further in person from January 6 onwards, including at higher tiers."
Rosie Duffield says former Labour colleagues are 'squirming'
Rosie Duffield has said her former colleagues in Labour are "squirming" over the appointment of Peter Mandelson.
The Canterbury MP who quit Sir Keir’s party in Sep 2024 accused Labour frontbenchers of defending an "absolute horror."
She said "[It is] hard to watch former colleagues, friends from my intake year, serious MPs who did serious work in previous parliaments, as they sit on Government benches, squirming and trying to ‘spin’ this absolute horror, defending the worst Labour PM in modern history.
"They are better than this."
National Security Advisor was 'particularly cautious' about Peter Mandelson appointment
Jonathan Powell, the UK’s National Security Advisor, "was particularly cautious about the appointment" of Lord Peter Mandelson as British ambassador to Washington, documents released by the Government have revealed.
Included within the cache of documents on Wednesday is a summary of a "fact-finding call" between Mike Ostheimer, general counsel for the prime minister, and Lord Matthew Doyle.
Lord Doyle was Downing Street’s director of communications at the time of the call with Mr Ostheimer on September 12 2025, the day after Lord Mandelson was sacked as British ambassador to Washington because of his links to Jeffrey Epstein.
The summary stated: "Lord Mandelson (LM) is a personal friend of MD [Matthew Doyle], while he doesn’t recall specific instances he certainly would have seen him at social events around December 2024."
Lord Mandelson was appointed as ambassador to Washington on December 20, 2024.
The summary added: "MD [Matthew Doyle] recalls there were interactions with Ailsa Terry [a senior Downing Street official] and Jonathan Powell (JP) on the matter, though not details. MD believes JP was particularly cautious about the appointment."
The summary also detailed that there was some "back and forth" between Lord Doyle and Morgan McSweeney, who was the Prime Minister’s chief of staff at the time.
It said those exchanges raised "three specific questions for LM [Lord Mandelson] to answer in respect of Jeffrey Epstein."
The details published on Wednesday did not disclose what those questions were.
Sir Ed Davey says Peter Mandelson must pay back severance payment
Sir Ed Davey has called on the former US Ambassador to donate his severance payment to charity
| GB NEWSSir Ed Davey has called on Peter Mandelson to donate his severance payment to charity as he launched a scathing attack on the former US Ambassador.
The Lib Dem leader said: "It’s astonishing Mandelson received a payout even after his longstanding connections to Epstein were discovered.
"These files show beyond doubt the prime minister was made well aware of the risks of his appointment. What an insult to the women and girls who suffered at Epstein’s hands.
"The disgraced ambassador must donate any severance payment he received in full to charity.
"These are the first documents in Britain’s Epstein files. The government must now release all documents relating to Andrew’s appointment as trade envoy, secured by the Liberal Democrats, by the end of March."
Zack Polanski says Keir Starmer must resign over botched Peter Mandelson appointment - 'He has to go!'
Green Party leader Zack Polanski has called on Keir Starmer to resign over his handling of the appointment of Peter Mandelson as US Ambassador.
Mr Polanski said: "These files confirm that Mandelson's malign influence runs through this Labour government.
"Starmer knew exactly the choice he was making when he appointed him. He has to go."
WATCH: Reform UK's Home Affairs spokesman Zia Yusuf calls on Keir Starmer to resign over Mandelson files
'The Government must release the files in full!' - Conservative Shadow minister says the files tell us 'what we already knew'
Alex Burghart, Conservative Shadow Cabinet minister, said: “These documents just confirm what we already knew.
"Keir Starmer was plainly aware of the relationship between Mandelson and the world’s most notorious paedophile when he appointed him as US ambassador.
“What’s worse, the Government gave him a payoff of £75,000 despite his resignation in disgrace.
"No one will be able to trust the Prime Minister’s judgement again.
“The Labour Government need to come clean on what documents have been hidden from view and whether WhatsApps or private emails have been deleted or hidden.
"The Government must release the files in full and make Mandelson repay the money.”
Peter Mandelson appointment 'weirdly rushed', says Prime Minister's National Security adviser
The Prime Minister's National Security adviser, regarded Lord Mandelson's appointment as UK Ambassador to the US as "weirdly rushed" and "unusual", the newly released files show.
In notes from a call taken between Mr Powell and the Prime Minister's general counsel on September 12, 2025, said Powell referred to the former peer's appointment "process unusual of Lord Mandelson (LM) weirdly rushed".
The notes continue to say that Mr Powell raised concerns about the "individual and reputation" to the Prime Minister's ex-Chief of Staff, Morgan McSweeney (MM).
It writes: "MM responded that the issues had been addressed."
REVEALED: The moment Keir Starmer decided Lord Mandelson needed to be sacked
In an email sent from the Prime Minister's private office on September 11, 2025 reveals the moment the Prime Minister decided Lord Mandelson needed to be sacked.
"The Prime Minister chaired a meeting to decide on next steps with regard to HMA Washington on Thursday 11 September. This was attended by the DPM, Foreign Secretary, FCDO PUS, Chief Whip and No 10 staff.
"The Prime Minister opened the meeting by outlining the situation as he saw it regarding the further reports about Lord Mandelson's links with Epstein.
"He referenced his concern at the judgements and views expressed in the cache of emails released by Bloomberg, that the answers Mandelson provided to FCDO PUS (Permanent-under-Secretary) Olly Robbins regarding the emails did not give him confidence that there were not further revelations to come and the serious discomfort in the PLP (Parliamentary Labour Party).
"The emails revealed a depth and extent of a relationship with Epstein which he had not been aware of previously when he made the decision to appoint Mandelson.
"On this basis, he proposed to ask Mandelson to resign from his post as HMA Washington. FCDO PUS advised that in practice Mandelson would be withdrawn from Washington and return to FCDO headquarters.
"All present agreed this was the correct course of action. It was agreed to release a short statement which was drafted and cleared by those present.
"The Prime Minister was clear about his strong concern for Epstein's victims and the importance of the work of the government to tackle Violence against Women and Girls.
"FCDO PUS spoke by telephone to Mandelson towards the end of the meeting to inform him of the Prime Minister's decision and of the next steps.
"It was noted that the Palace had been informed of the decision during the meeting."
Lord Mandelson asked for half a million severance after sacking over relationship with Epstein
The freshly released Mandelson files show that the disgraced peer asked for a payout of £500,000.
After being sacked by the Prime Minister last September, Lord Mandelson, requested an eyewatering half a million payout.
In a Treasury form filled out at the end of September last year, it wrote: "Negotiations began with a request by the individual to pay out the remainder of the 4 year salary costs of the fixed term appointment.
"This would have amounted to £547,201."
The files show that Lord Mandelson's total remuneration package as UK Ambassador to the US was £180,252.
PICTURED: Peter Mandelson described Epstein as 'safe (whatever that means)' in 2002
| UK GOVERNMENT
Emails contained in the documents show correspondence between Peter Mandelson and Jonathan Powell, Tony Blair’s chief of staff at the time.
In one email dated 7 May 2002, Mandelson wrote that Jeffrey Epstein was “safe (whatever that means)” and noted that Bill Clinton was “doing a lot of travelling” with him.
The message indicates Mandelson was relaying that President Clinton wanted Prime Minister Tony Blair to meet Epstein.
A follow-up document dated 14 May 2002 appears to be a Downing Street briefing prepared for Sir Tony ahead of a proposed 5pm meeting with Epstein that day.
The briefing describes Epstein as a friend of both President Clinton and Lord Mandelson, and notes his links to Prince Andrew, stating he was “close to the Duke of York” and had visited Sandringham.
According to the briefing, President Clinton had encouraged the Prime Minister, Sir Tony, to meet Epstein and believed he would find a discussion with him worthwhile, particularly on topics including "science" and "international economic and monetary trends".
Top civil servant claimed £75k payout was 'good value for money'
A top civil servant described Lord Mandelson's £75,000 payout as "good value for money".
Oliver Robbins penned a letter to the Chief Secretary to the Treasury, James Murray, on October 6, 2025, setting out his bizarre claim.
He wrote: "The FCDO wishes to pay £40,330 in lieu of three months’ notice, plus a termination payment of £34,670.
"While the total amount of the payment (£75,000) is within our delegated authority, the case will attract public interest so I would be grateful for your approval.
"This represents good value for money. The proposed severance payment will be subject to the individual signing a Settlement Agreement which contains undertakings that the agreement is in full and final settlement of all claims, and includes confidentiality undertakings related to the payment.
"The Department will not publish the detail of this payment. For information, we do disclose exit payments values and numbers in the Staff Report in our accounts in banded groupings by amount but do not disclose the names of individuals.
"Last year there were 57 payments in the £50-100,000 band. Given that Lord Mandelson remains employed by the Department on full pay, but is not redeployable, I would be grateful for your urgent consideration of this Business Case.
"I am copying this letter to Darren Jones (CDL), Dan York-Smith (PPS/No 10), Caroline Hurndall (PPS/Foreign Secretary), Chris Wormald (Cabinet Office), James Bowler (HMT) and colleagues here."
READ IN FULL: Lord Mandelson's 'farewell' letter
Lord Mandelson sent an email to staff in Washington after he was forced to step down as the UK's Ambassador to the US.
The New Labour titan wrote: "As you will be have seen, my position as Ambassador to the United States has come to an end. Being Ambassador here has been the privilege of my life, and Reinaldo’s.
"I could not have wished for a better welcome by you all, a better introduction to the job or better support while here. Your professionalism has been superb, more so than I have experienced in any public role. For this I thank you from the bottom of my heart.
"The circumstances surrounding the announcement today are ones which I deeply regret. I continue to feel utterly awful about my association with Epstein twenty years ago and the plight of his victims.
"I have no alternative to accepting the Prime Minister’s decision and will leave a position in which I have been so incredibly honoured to serve. The relationship between Britain and the United States of America is a unique one.
"I know that you will continue to serve and deepen that relationship from DC right across our brilliant network.
"I wish to thank you for all of your efforts in serving me as your Ambassador. In a short time we have achieved so much. We leave the relationship with the US in a really good condition, with a magnificent State Visit and the new US-UK Technology Partnership – my personal pride and joy that will help write the next chapter of the special relationship – set for next week.
"Thank you from me, Reinaldo and Jock. I will treasure the experience and memory of having worked with you all. Very best Peter"
PICTURED: PM told about Lord Mandelson's links with Jeffrey Epstein in December 2024
Sir Keir Starmer was told about Lord Mandelson's links with convicted paedophile Jeffrey Epstein in 2024, the first batch of files on the New Labour's titan has revealed.
The document included a 2019 report commissioned by JP Morgan and Epstein's personal records showing contact from as early as 2002.
The dossier added: "The Cabinet Office holds official records that are likely to be released by the National Archives early next year, which relate to a Tony Blair meeting with Epstein that was facilitated by Mandelson."
The Prime Minister was told the topic brought "general reputational risk".
Lord Mandelson paid £75k settlement after being sacked
Lord Mandelson received a £75,000 settlement when he was sacked as the UK's Ambassador to the US.
The severance payment included his contractual entitlement to a notice period.
However, Lord Mandelson demanded an eyewatering £547,000.
No10 releases Lord Mandelson files
GB News is trawling through the first batch of documents released by No10 about what Downing Street knew about Lord Mandelson’s friendship with Jeffrey Epstein.
The People’s Channel will bring you all the latest breaking developments as they happen.
Al Quds Day protests banned for one month, Home Secretary tells the Commons
The Home Secretary, Shabana Mahmood, has addressed the Commons on her decision to prohibit the Al Quds Day protest.
Al Quds Day, or International Quds Day, is an annual pro-Palestinian event held on the last Friday of Ramadan.
The day was first introduced in 1979 in Iran following the Iranian Revolution, when the country’s leader called for demonstrations supporting Palestinians and opposing Israel.
She said: "Plans for a procession this Sunday in London have been led by the Islamic Humans Rights Commission, an organisation that have been closely associated with the Iranian regime.
"It comes at a time at the Iranian regime is attacking British forces and bases as well as those of our allies.
"It also comes after an arrest of four individuals as part of an investigation led by counter terror police... for allegedly spying on Jewish communities on behalf of the Iranian regime.
She said that this situation means "heightened attention and therefore, larger expected attendance, heightened tensions between protests and counter protests and therefore, greater potential for conflict".
Ms Mahmood continued said the legal test for prohibiting a public procession must meet the requirement that it aims to prevent "serious public disorder" that could not otherwise be mitigated, referencing Section 13 of the Public Order Act of 1986.
The Home Secretary said: "I am satisfied that an order under Section 13 is necessary, for one month there will therefore be a prohibition on processions in London related to Al Quds Day by protesters and counter-protesters."
It will come into effect today and end April 11.
Liberal Democrats warn of Assisted Dying Bill running out of time in Parliament
Vikki Slade, Liberal Democrats, raised the issue of the Assisted Dying Bill will essentially run out of time for it to complete its passage through Parliament.
She said: "It would be a travesty for democracy and more importantly, a tragedy for all those who are replying on it and have waited so long, not least my Dad."
The Prime Minister responded: "I know there are strong views... It is a matter of conscience, it is for Parliament to decide the passage of the legislation and any changes.
"We have a responsibility to make sure that any legislation is workable, effective and enforceable."
'Travelodge must take serious action' - Keir Starmer addresses the sexual assault in hotel chain
Sir Keir Starmer has said Travelodge must take “serious action” after a woman was sexually assaulted in her hotel room by a man who had been given a key card and her room number.
Kyran Smith, who attended the same party as the victim in December 2022, later followed guests back to the Travelodge in Maidenhead where they were staying.
Staff issued Ms Smith with a key card after he falsely claimed to be the woman’s boyfriend.
He was later jailed for seven-and-a-half years for the attack.
Describing the case as an “absolutely shocking” incident, Sir Keir said: “My thoughts are with the victim who had a right to be safe and was failed in the most appalling way.
“Travelodge must take serious action to make sure an appalling incident must never happen again.”
The Prime Minister also said he was “concerned” by reports that the hotel chain had refused to meet with MPs over the case.
SNP questions Prime Minister over possibility of war crimes committed in Middle East
Stephen Flynn, SNP leader in Westminster said: "Donald Trump's war in Iran is illegal and the situation has unfolded since is verging on insane.
"Oil is falling from the skies.
"The economic consequences of which will be stark for every economy, but for every single person on these isles too.
"The prime minister did indeed take us into that war when he allowed the Americans into UK bases just last week."
Mr Flynn raised the incident of an American tomahawk missile hitting a school in Iran, killing many children.
He said: "Does the Prime Minister consider this a war crime?"
Sir Keir responded: "We have 300,000 UK nationals, including Scottish, in the region.
'We are taking action to protect them - I am astonished the SNP says don't take action to help Scottish citizens in the region."
Sir Ed Davey raises issue on handgun legislation in light of 30 years on from Dunblane
Sir Ed Davey, leader of the Liberal Democrats, raised the issue handgun laws, referencing of the Dunblane shooting 30 years ago this week, where a teacher and 16 children were killed.
He mentioned Mick North, a father of a victim of Dunblane, who has called for Nigel Farage to renounce his description of the handgun ban as "ludicrous", but he "refuses to do so".
Keir Starmer takes aim at Nigel Farage in new jab at Reform UK
Sir Keir Starmer has taken aim at Reform UK leader Nigel Farage over events in the Middle East.
The Prime Minister, who accused Kemi Badenoch of completing the "mother of all U-turns", claimed Mr Farage is not fit to be Prime Minister in a new jab.
He said: "The leader of Reform: 'We should be part of this with the US and the Israelis. We have to get rid of the regime. We should do all we can to support the operation. I make that perfectly, perfectly clear', he said.
"Until yesterday. Screeching U-turn. We shouldn't get ourselves involved in another foreign war. Two parties packed with failed Tories, led by leaders who are not fit to be Prime Minister."
WATCH: Moment furious Lindsay Hoyle halts PMQs and kicks out Labour MP during Commons showdown
'She has utterly disqualified herself from becoming Prime Minister' - Sir Keir strikes at Kemi Badenoch for Middle East conflict U-turn
The Prime Minister said: "In the last two weeks I've made two of the most important decisions a Prime Minister can take.
"The Leader of the Opposition decided we should join the war against Iran - a week later, we should not join the war against Iran and to insult our armed forces.
"She has utterly disqualified herself from becoming Prime Minister and thankfully, she never will!"
PM said: “If she had any decency, she would get up and apologise.”
Mrs Badenoch responded: “I have never criticised our Armed Forces. I am criticising him and his decisions. This is the same man who worked with Phil Shiner, a traitor to this country, who made up evidence to put our soldiers in prison for crimes they didn’t commit.
“Oh and by the way, military families are also worried, the ones in this country, about petrol prices. He’s got nothing to say on that.”
Leader of the Opposition relentless on fuel duty issue
Kemi Badenoch doubled down on pushing the PM to cut fuel duty
|GB NEWS
Kemi Badenoch said military families are worried about petrol prices, as well as farmers.
She said: "I spent all last year telling the Prime Minister that his family farms tax was killing British farming, now those farmers are being punished for higher fuel taxes."
The Prime Minister said: "I am not taking lectures from someone who said we should join the war, and a week later says, 'Can I change my mind I've got that wrong?"
Sir Keir also went for Nigel Farage as well, who committed a "screeching U-turn", he said.
Mrs Badenoch continued: "Why doesn't the Prime Minister scrap the fuel duty hike now?"
'If I was Prime Minister, HMS Dragon would of left a week ago' - Kemi Badenoch slams the Prime Minister's delayed response on Middle East
PMQs is turning into a ping-pong match between the Prime Minister and the Leader of the Opposition on fuel duty and the Middle East conflict.
The Prime Minister said: "In this job, you don't get a second shot at making the right call at taking your country to war!
"If she were Prime Minister, we would be in the war and we'd be coming back to Parliament a week later, with her saying, 'Oh sorry, we got that wrong'."
Mrs Badenoch replied: "If I was Prime Minister, HMS Dragon would of left a week ago."
'This is the mother of all U-turns' - Keir Starmer strikes at Kemi Badenoch for U-turning on situation in US-Israel conflict in Middle East
Sir Keir Starmer accused Kemi Badenoch of completing the 'mother of all U-turns'
|GB NEWS
Kemi Badenoch asked the Prime Minister why the Government is increasing the cost of petrol.
The Prime Minister said: "We are not increasing the cost of petrol, we are absolutely clear in taking the measures that are necessary in dealing with the impact of the conflict in Iran.
"The best thing we can do is work with others to de-escalate the situation.
The Prime Minister further emphasised his decision to not join the US and Israel in the initial strikes.
He then retorted and said Mrs Bandenoch had u-turned on her position, after attacking the Prime Minister for this decision.
Sir Keir said: "The leader of the opposition totally abandoned her position".
"She told the BBC, 'I haven't said we should of gone in with the United States.
"This is the mother of all U-turns!"
Keir Starmer locks horns with Kemi Badenoch at PMQs
Sir Keir Starmer has risen to his feet in the House of Commons in yet another Prime Minister’s Questions showdown with Kemi Badenoch.
MPs who will posing questions to the Prime Minister over the next half an hour:
- Sureena Brackenridge (Wolverhampton North East) - Labour
- Wendy Chamberlain (North East Fife) - Lib Dem
- David Williams (Stoke-on-Trent North) - Labour
- Gagan Mohindra (South West Hertfordshire) - Conservatives
- Josh Dean (Hertford and Stortford) - Labour
- Dr Andrew Murrison (South West Wiltshire) - Conservatives
- Kirsty Blackman (Aberdeen North) - SNP
- Peter Dowd (Bootle) - Labour
- Graham Stuart (Beverley and Holderness) - Conservatives
- Stephen Gethins (Arbroath and Broughty Ferry) - SNP
- Catherine Atkinson (Derby North) - Labour
- Graham Stringer (Blackley and Middleton South) - Labour
- Vikki Slade (Mid Dorset and North Poole) - Lib Dem
Keep reading GB News’s live blog for more.
PICTURED: Keir Starmer leaves No10 for PMQs showdown
Sir Keir Starmer leaves Downing Street ahead of PMQs
|REUTERS
EXPLAINER: The Mandelson files
Documents relating to Peter Mandelson's appointment as UK ambassador to the United States will be released this afternoon.
Coming in shortly after PMQs, the first tranche of tens of thousands of documents relating to Lord Mandelson's appointment by the Prime Minister will be released and should be available to view on the Government website.
Amongst the correspondence between official in Downing Street, the Cabinet Office and the Foreign Office that will be released, will (hopefully) reveal how much the Prime Minister knew about Lord Mandelson's relationship with paeodophile financier, Jeffrey Epstein, at the point of his appointment in December 2024.
Sir Keir dismissed Lord Mandelson in September last year after emails revealed he and the late Epstein had a closer relationship than Downing Street has been told.
The controversy further intensified last month after the disgraced peer was arrested on suspicion of misconduct in a pubic office, over allegations he leaked confidential information to Epstein whilst serving as Business Secretary under Gordon Brown.
Peter Mandelson denies any wrongdoing.
PICTURED: Peter Mandelson on the move as release of files loom
'We will play our part!' Rachel Reeves confirms UK open to releasing oil reserves
Rachel Reeves appeared at the Treasury Select Committee this morning
|PA
Rachel Reeves has confirmed the UK is "willing to play its part" in releasing oil reserves amid fears of an energy crisis following the war in Iran.
The Chancellor told MPs at the Treasury Select Committee: “The UK is willing to play its part in using those reserves to put downward pressure on oil prices and ensure that supply remains strong.”
Rachel Reeves admits it's 'too soon' to predict impact of Iran war
Rachel Reeves has admitted it is "too soon" to predict the economic impact of the Iran war.
Speaking at the Treasury Select Committee, the Chancellor said: “It was obvious that there were disruptions to markets and prices."
She added that the Government is "working hard to de-escalate the conflict".
However, the Office for Budget Responsibility warned events in the Middle East could push inflation up by three per cent.
Public can expect 'full transparency' over Peter Mandelson files, says Cabinet Secretary
Darren Jones, Cabinet Secretary and Chancellor of the Lancaster of Duchy, told GB News, there will be "full transparency" from the Government on the release of the Peter Mandelson's files.
He reiterated that the Prime Minister "regrets" the appointment of Lord Mandelson, but that Sir Keir wasn't aware of the "depth and extent of Peter Mandelson's relationship with Jeffrey Epstein".
Mr Jones said some documents won't be published today because they are being analysed by the Metropolitan Police as part of their investigation against the disgraced peer, who was arrested last month over suspicion for misconduct in a public office.
Peter Mandelson denies any wrongdoing.
PICTURED: Lord Mandelson leaves London home ahead of No10 files release
EXPLAINER: What is Al Quds Day?
Al Quds Day, or International Quds Day, is an annual pro-Palestinian event held on the last Friday of Ramadan.
The name comes from the Arabic word for Jerusalem.
The day was first introduced in 1979 in Iran following the Iranian Revolution, when the country’s leader called for demonstrations supporting Palestinians and opposing Israel.
Since then, demonstrations have been held around the Middle East and beyond, including London.
Supporters say the day highlights Palestinian rights and the status of East Jerusalem.
However, critics argue some demonstrations have featured antisemitic rhetoric and hostility toward Israel, making the event highly controversial.
The Government approves Metropolitan Police request to ban Al Quds Day march
The Government has approved the Met's request to prohibit the Al Quds Day march on Sunday.
Home Secretary, Shabana Mahmood, said the ban was intended to prevent "serious public disorder" as the annual march has been viewed as a pro-Iranian event, despite its organisers saying its more of a pro-Palestine demonstration.
The Met has said the request to the Government was not taken lightly and the threshold to ban a protest was high - this is the first time a protest has been banned since 2012.
Ms Mahmood has allowed for a stationary protest could take place instead, with strict restrictions applied.
Shadow Chancellor, Mel Stride, told GB News the decision by the Home Secretary was "definitely the right decision".
'It's absolutely tragic!' Robert Jenrick likens Birmingham to 'third world country' as bin strike chaos continues
Reform UK MP Robert Jenrick has likened Birmingham to a third-world country in scathing criticism of the city's council as bin strikes enter their second year.
Today marks a year since refuse collectors in England's second-largest city performed a total walkout, leaving residents to endure rat-ridden roads with piles of rubbish piled high.
However, Mr Jenrick declared that a "big moment for change" was coming for Birmingham residents to welcome in new leadership in the city.
The Reform MP told The People's Channel it was "tragic" that residents have been forced to endure such conditions, particularly in the city's poorest regions.
He said: "I went with GB News to Birmingham around [the start of the strikes] and saw for myself the appalling state of the city. And it's such a tragedy.
"I know Birmingham very well. I grew up down the road in Wolverhampton and to see the city, particularly some of its poorest neighbourhoods, looking like a third-world country with rubbish piled up everywhere, it was absolutely tragic.
"It's got to come to an end and the failing council there has got to sort this thing out, get the trade unions round the table and bring this to a conclusion."
Labour kills off nearly 1,000 years of British history as controversial Lords plan passes
Centuries of British history are set to come to an end after a Bill was passed to kick the last hereditary peers out of the House of Lords.
Peers passed the House of Lords (Hereditary Peers) Bill after a deal was struck to offer extra spots to some of those who will lose their seats in the coming months.
Sir Tony Blair first moved to scrap hereditary peers, who inherit their titles through birthright, in 1999.
Now, Sir Keir Starmer's Government will shelve the final 92 dukes, earls, viscounts and barons.
White House admits Keir Starmer's relationship with Donald Trump is broken in attack on 'ungrateful' Britain
The White House has ripped into Sir Keir Starmer's Britain for a "lack of gratitude" in yet another blow to the so-called "special relationship".
Speaking to GB News last night, US special envoy Steve Witkoff delivered a damning assessment of Britain and Europe's reliance on America.
Mr Witkoff, one of Donald Trump's negotiating duo sent around the world for crunch talks with Vladimir Putin, Israel, Hamas and Iran, was probed on whether the PM had upset the special relationship.
"Sometimes we detect that there's not that feeling of gratitude," he said.
Keir Starmer to publish 'big batch' of Peter Mandelson files in just hours
Lord Mandelson was appointed as the UK's Ambassador to the US despite his known links with Jeffrey Epstein
|PA
No10 will release the first batch of files relating to Lord Mandelson's appointment as US ambassador in just hours.
Darren Jones, who serves as Sir Keir Starmer's Chief Secretary, is expected to address the House of Commons after Prime Minister's Questions.
The decision to delay the announcement until after Sir Keir's weekly Commons showdown sparked cries of "dodging questions” over the vetting process.
Another batch of documents will be released at a later date, GB News understands.
Lord Mandelson was arrested on February 23 on suspicion of misconduct in public office.
The new Labour titan, who resigned from the Labour Party last month, remains under police investigation.
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