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Sir Keir Starmer's chief of staff has quit Downing Street as the Government continues to reel from the Peter Mandelson scandal.
Morgan McSweeney, who has been one of Sir Keir's closest aides for nearly six years, resigned today after pushing for the appointment of Lord Mandelson as Britain's ambassador to the US.
In a statement, Mr McSweeney admitted that naming the disgraced peer as Britain's top diplomat in Washington DC was 'wrong'.
He said he was taking 'full responsibility' for advising the Prime Minister to do so, adding: 'In the circumstances, the only honourable course is to step aside.'
Sir Keir is facing the worst crisis of his 18-month premiership following fresh revelations about Lord Mandelson's friendship with paedophile Jeffrey Epstein.
Many Labour MPs have been openly questioning Sir Keir's chances of remaining in Downing Street amid the scandal that has engulfed his Government.
A number of backbenchers had demanded the scalp of Mr McSweeney - viewed as a 'mentee' of Lord Mandelson - as they fumed at No10's decision to appoint the ex-Cabinet minister as US ambassador.
Sir Keir has now lost two chiefs of staff during his time in Downing Street, following the acrimonious exit of Sue Gray in October 2024.
The loss of Mr McSweeney, who was the architect of Sir Keir's general election victory, is a further shattering blow to the PM's increasingly fragile grip on power.
Mr McSweeney played a key role in Sir Keir's success in taking Labour from opposition to Government after he replaced Jeremy Corbyn as leader in April 2020.
It had previously been speculated that, due to the pair's closeness, Mr McSweeney's departure from No10 would only come if accompanied by Sir Keir's own exit.
Sir Keir Starmer's chief of staff has quit Downing Street as the Government continues to reel from the Peter Mandelson scandal
Sir Keir is facing the worst crisis of his 18-month premiership following fresh revelations about Lord Mandelson's friendship with paedophile Jeffrey Epstein
In a statement, Mr McSweeney admitted that naming Lord Mandelson as Britain's top diplomat in Washington DC was 'wrong'
Tory leader Kemi Badenoch accused Sir Keir of trying to shift the blame for Lord Mandelson's appointment onto Mr McSweeney
Reform UK leader Nigel Farage suggested Sir Keir 'won't be far behind' in departing No10 following local elections in May
Mr McSweeney's resignation will be seen as a desperate bid by Sir Keir to keep himself in power, with Angela Rayner - the former deputy PM - said to be on leadership 'manoeuvres'.
Health Secretary Wes Streeting, Energy Secretary Ed Miliband, Armed Forces minister Al Carns and Labour deputy leader Lucy Powell are also seen as possible replacements for Sir Keir.
But Greater Manchester mayor Andy Burnham now appears to have only a slim prospect of fulfilling his leadership ambitions, after he was blocked from standing in the Gorton and Denton by-election by Sir Keir's allies.
In further developments today:
The boss of one of Labour's trade union backers publicly called for the PM to quit;Sir Keir's Cabinet ally Pat McFadden appeared to acknowledge the PM could go, but said he 'should continue' and warned MPs against a no confidence vote;Labour peer Ayesha Hazarika claimed a 'male power structure' was the reason why her party had been 'so seduced' by Lord Mandelson over the years;She suggested Lord Mandelson had been appointed by Sir Keir to 'sit in hot tubs' with 'slightly tawdry' business people linked to Donald Trump;Senior Tory MP Alex Burghart, the shadow chancellor of the Duchy of Lancaster, said Sir Keir's position is 'not tenable';New polling has revealed a fresh slump in the PM's approval ratings, while more than half of voters said Sir Keir should quit.Sir Keir paid tribute to Mr McSweeney on Sunday for having 'turned our party around' and said he owned his outgoing aide 'a debt of gratitude'.
'It's been an honour working with Morgan McSweeney for many years,' the PM said.
'He turned our party around after one of its worst ever defeats and played a central role running our election campaign.
'It is largely thanks to his dedication, loyalty and leadership that we won a landslide majority and have the chance to change the country.
'Having worked closely with Morgan in opposition and in Government, I have seen every day his commitment to the Labour Party and to our country.
'Our party and I owe him a debt of gratitude, and I thank him for his service.'
Tory leader Kemi Badenoch accused Sir Keir of trying to shift the blame for Lord Mandelson's appointment onto Mr McSweeney.
'Once again with this PM it's somebody else's fault: 'Mandelson lied to me' or 'Morgan advised me', she said.
'Keir Starmer has to take responsibility for his own terrible decisions. But he never does.'
Reform UK leader Nigel Farage said: 'As predicted McSweeney has gone. Labour are just continuing the chaos we saw under the Tories.
'My money says Starmer won't be far behind after Labour's disaster in the elections this coming May.'
Liberal Democrat deputy leader Daisy Cooper said: 'The Prime Minister can change his advisers all he likes, but the buck stops with him.
'We need to see an end to this political soap opera, with answers for the British public and, most importantly, justice for the victims and survivors of Epstein and his network.'
Mr McSweeney's resignation will be seen as a desperate bid by Sir Keir to keep himself in power, with Angela Rayner - the former deputy PM - said to be on leadership 'manoeuvres'
Labour pressure group Mainstream, which is backed by Mr Burnham, said savid everyone involved in the decision to appoint Lord Mandelson must face consequences.
It said: 'All those involved in the disastrous appointment of Peter Mandelson as must be held to account, and it is right that personnel in No10 most supportive of Mandelson face consequences.
'We now need to tear out the regressive politics of elite privilege and toxic factionalism that enabled this scandal – and which will only produce more – root and branch.'
Sir Keir is now facing the prospect of yet another 'reset' of his Downing Street operation, after a series of previous rethinks during his year-and-a-half in No10.
James Lyon, who quit as Sir Keir's director of communications in September last year during one of those No10 shake-ups, said Mr McSweeney's departure would make it harder for Sir Keir to remain as PM.
'There's no kind of overstating how important Morgan has been in Keir Starmer's Government,' he told GB News.
'It was sometimes difficult to work out whether Morgan was central to the Keir Starmer project, or Keir Starmer was central to the Morgan McSweeney project.
'His departure now makes the Prime Minister's chances of getting through all of this - it makes it hard for the Prime Minister to get through all of this in the longer term.
'One of the many roles that Morgan played in Government was being a lightning conductor for criticism from various different parts of the Labour Party and, of course, from the media.
'So that that has now gone, and that obviously is going to make the Prime Minister's position more exposed.'
Mr McSweeney's exit followed reports that both Ms Rayner and David Lammy, the Deputy PM, had warned Sir Keir not to appoint Lord Mandelson as US ambassador.
In his resignation statement, the outgoing No10 chief of staff said: 'After careful reflection, I have decided to resign from the Government.
'The decision to appoint Peter Mandelson was wrong. He has damaged our party, our country and trust in politics itself.
'When asked, I advised the Prime Minister to make that appointment and I take full responsibility for that advice.
'In public life responsibility must be owned when it matters most, not just when it is most convenient. In the circumstances, the only honourable course is to step aside. This has not been an easy decision.
'Much has been written and said about me over the years but my motivations have always been simple: I have worked every day to elect and support a Government that puts the lives of ordinary people first and leads us to a better future for our great country.
'Only a Labour Government will do that. I leave with pride in all we have achieved mixed with regret at the circumstances of my departure.
'But I have always believed there are moments when you must accept your responsibility and step aside for the bigger cause.
'As I leave I have two further reflections: Firstly, and most importantly, we must remember the women and girls whose lives were ruined by Jeffrey Epstein and whose voices went unheard for far too long.
'Secondly, while I did not oversee the due diligence and vetting process, I believe that process must now be fundamentally overhauled. This cannot simply be a gesture but a safeguard for the future.
'I remain fully supportive of the Prime Minister. He is working every day to rebuild trust, restore standards and serve the country.
'I will continue to back that mission in whatever way I can. It has been the honour of my life to serve.'
The PM was warned on Sunday morning that Labour's trade union backers could attempt to topple him.
Steve Wright, the general secretary of the Fire Brigades Union, called for the PM to go and lashed out at Sir Keir for failing to listen to Mr Lammy's advice over the appointment of Lord Mandelson.
'He's listening to a factional group which are making bad decisions, it seems,' he added of the PM.
But Pat McFadden, a key Cabinet supporter of the PM, rejected calls for a no-confidence vote in Sir Keir.
The Work and Pensions Secretary argued Labour should 'not drop the pilot after 18 months'.
He told the BBC: 'Why would we have a confidence vote when he won a general election 18 months ago? He should carry on with what he's doing.'
But Mr McFadden also appeared to acknowledge the PM could go, saying that 'if' Sir Keir stays it would make no difference whether Mr McSweeney ended up being sacked as his chief of staff.
Asked about allies of Mr Lammy and Ms Rayner suggesting they had warned against appointing Lord Mandelson, Mr McFadden told Sky News: 'It's up to them.
'They're over 21, you know, they'll have to answer for themselves on what they're saying.'
Mr McFadden defended Sir Keir's initial decision to appoint Lord Mandelson, prior to being forced to sack him following new revelations about his links to Epstein.
'In the end the judgment was, they were looking for someone who could operate at the highest political level with the Trump administration, who knew business, who knew trade,' he said.
'Now that turns out to have been the wrong decision, and it's blown up in the most spectacular manner.
'But it's important for your viewers to understand why on earth was this appointment made in the first place, and that is the reason.'
Pat McFadden, a key Cabinet supporter of the PM, has rejected calls for a no-confidence vote in Sir Keir
An Opinium poll found 55 per cent of the public think Sir Keir should resign, with only a quarter (23 per cent) believing he should remain in post.
Meanwhile, the PM's approval ratings remain very low with just 17 per cent approving of Sir Keir's performance - compared to 61 per cent who disapprove.
This gives the PM an overall approval rating of -44, down three points from Opinium's previous survey.
It means Sir Keir is more unpopular than all the other major party leaders, including Mrs Badenoch (-9), Reform UK's Nigel Farage (-11), Liberal Democrat leader Sir Ed Davey (-3), and the Green's Zack Polanski (-3).
A majority of the public (56 per cent) believe Sir Keir should have anticipated the controversy before appointing Lord Mandelson as US ambassador and should not have appointed him.
Only 15 per cent believe the decision was reasonable based on what was known at the time.
James Crouch, head of policy and public affairs at Opinium, said: 'The deepening fallout from the Mandelson appointment has pushed Starmer's rating even lower, with most voters now questioning his judgement on the appointment and placing equal blame on the prime minister and his advisers.'
The Sunday Times reported that both Mr Lammy and Mr Powell had warned Sir Keir not to name Lord Mandelson as US ambassador in February 2025.
But the PM is said to have pushed ahead with appointing the peer to the senior diplomatic role with the support of Mr McSweeney.
Labour grandee Lord Blunkett had called on Sunday morning for Mr McSweeney's departure, saying Sir Keir 'needs a new chief of staff' because he was advised badly over Lord Mandelson.
The former Cabinet minister also castigated Labour figures engaged in a briefing over the weekend.
Friends of Ms Rayner and potential leadership rival Mr Streeting exchanged bitter remarks amid speculation about a possible contest to replace Sir Keir.
Lord Blunkett told BBC Radio 4: 'Things are dire. But they're made more difficult from briefings and counter-briefings.
'When people see a party acting like ferrets in a sack they draw their conclusions. Once again let's try and get our act together and speak with a common voice about what we're about.'
'Morgan wouldn't breathe without consulting Mandelson first'Lord Peter Mandelson is claimed to have 'masterminded' Sir Keir Starmer's reshuffle just days before he was sacked as Britain's ambassador to the US.
In fresh revelations about the extent of his influence on Labour, the disgraced peer is reported to advised Downing Street on the Government shake-up.
Lord Mandelson is also said to have been directly involved in helping Sir Keir's top aide select parliamentary candidates ahead of the 2024 general election.
On 5 September last year, the Prime Minister carried out the first major reshuffle of his premiership following the resignation of Angela Rayner over a tax row.
It saw a number of 'soft-left' MPs sidelined in favour of those seen as allies of Morgan McSweeney.
No10 insiders have expressed their bemusement at Lord Mandelson's claimed role in the reshuffle, especially considering he was sacked less than a week later.
On 11 September, Sir Keir was forced to remove the peer from his Washington DC role over his links to paedophile financier Jeffrey Epstein.
One person who worked with Mr McSweeney while Labour were in opposition told the New Statesman: 'Morgan wouldn't breathe without consulting Mandelson first.'
Another said: 'They talked all the time.'
The Left-leaning publication also reported that Lord Mandelson praised Mr McSweeney's political talents and was 'instrumental' in the adviser navigating a Downing Street power struggle with Sue Gray in autumn 2024.
Commenting on Lord Mandelson's reported role in Sir Keir's reshuffle last September, one No10 insider said: 'That is not normal. He was the US ambassador – why was he masterminding the reshuffle?'
Government sources have insisted Lord Mandelson's advice was 'unsolicited'.
Yet Lord Mandelson is said, prior to his sacking, to have been one of the most important figures in the Labour Government.
Other reports have suggested that Lord Mandelson's influence long pre-dated his appointment as US ambassador in February last year.
A party whistleblower told The i Paper that Lord Mandelson was directly involved in helping Mr McSweeney select Labour's parliamentary candidates ahead of the 2024 general election.
He was reported to have helped identify potential candidates who were seen as too Left-wing to run for the party.
The source also said he was given access to a secret Google spreadsheet of potential candidates that Mr McSweeney and his allies used.
A Labour Party spokesperson said: 'Peter Mandelson had no role in selecting candidates ahead of the 2024 general election.
'All candidate selections were carried out in compliance with the Labour Party rule book and procedures agreed by the National Executive Committee.'
Labour peer Ayesha Hazarika claimed a 'male power structure' was the reason why her party had been 'so seduced' by Lord Mandelson over the years.
'He was, you know, seduced by wealth and power and men with yachts and all the culture that goes with that,' she told Sky News.
'That is why he got given the job (as US ambassador), because the calculation was these are the slightly tawdry circles in which the US President (Donald Trump) moves.
'And we need a guy that, you know, swims in these pools, sits in these hot tubs, if you like, with these big guys, they can do business together.
'And that transactional thought was put over the victims of sex abuse.'
Mr McFadden suggested the focus on Mr McSweeney's role in Lord Mandelson's appointment was 'beside the point', as he defended both Mr McSweeney and Sir Keir.
'In the end, it's a prime ministerial appointment, and I think the stuff about Morgan McSweeney is sort of beside the point,' the Cabinet minister said.
It has also been revealed that Lord Mandelson received a five-figure payout when he was sacked from the role in September last year.
The peer is now facing demands to hand back the taxpayer-funded severance payment.
Allies of Sir Keir said the peer should return the cash or donate it to a victims' charity.
Mr McFadden told Sky News that Lord Mandelson should 'give it back or give it to a charity, perhaps one involving violence against women and girls'.
He added: 'I think taking a payoff in these circumstances, I don't think the public will think much of that.'
The Foreign Office said a review had been launched 'in light of further information that has now been revealed'.
A spokesman said: 'Peter Mandelson's civil service employment was terminated in September 2025 in accordance with legal advice and the terms and conditions of his employment.
'As we have consistently said to Parliament, normal civil service HR processes were followed.
'Further information will be provided to Parliament as part of the Government response to the motion passed last week which is being co-ordinated by Cabinet Office.
'A review has been instigated in light of further information that has now been revealed and the ongoing police investigation.'
The Conservatives have called for a no-confidence vote in the PM.
They noted that due diligence seen by Sir Keir before Lord Mandelson's appointment flagged the fact Lord Mandelson had left Cabinet twice before, his alleged business dealings in Russia and China, and his ongoing relationship with Epstein after his conviction for soliciting a minor for prostitution in 2008.
Senior Tory MP Alex Burghart, the shadow chancellor of the Duchy of Lancaster, said: 'Any one of these three things on their own should have been serious cause for concern, given that this was our most senior diplomatic posting.
'And yet the Prime Minister went ahead with the appointment anyway, in a way that I'm afraid has totally destroyed the Prime Minister's reputation and trust in the Prime Minister's judgment.'
The Metropolitan Police said its investigation into Lord Mandelson, 72, over alleged misconduct in public office would 'take some time' after officers finished searching his homes in London and Wiltshire.
'This will be a complex investigation requiring a significant amount of further evidence gathering and analysis,' Metropolitan Police Deputy Assistant Commissioner Hayley Sewart said.
A spokesman for Mr Lammy, who is now Justice Secretary and Deputy PM, said: 'The Deputy Prime Minister is focused on the job in hand and fully supports the Prime Minister as he gets on with delivering for the British people.'
Lord Mandelson has denied the so-called 'Epstein files' show he broke any laws or acted for personal gain. He has repeatedly said he regrets his friendship with Epstein.
Opinium surveyed 2,054 adults between Wednesday and Friday.
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