Downing Street in Chaos: Starmer’s Chief of Staff Resigns Over "Toxic" Mandelson-Epstein Links and Market Leak Scandal

The British government was rocked on Sunday, February 8, 2026, by the resignation of Morgan McSweeney, Prime Minister Keir Starmer’s chief of staff and political strategist. McSweeney admitted "full responsibility" for the disastrous decision to appoint Peter Mandelson as the UK’s Ambassador to Washington in 2024. The scandal ignited after newly released U.S. "Epstein Files" suggested Mandelson shared market-sensitive information—including early details of the €500bn Euro bailout—with Jeffrey Epstein during the 2008 financial crisis.

The crisis has moved beyond diplomatic embarrassment to a criminal investigation, with Metropolitan Police searching Mandelson’s properties for evidence of "misconduct in public office." While Starmer attempts to distance himself by firing Mandelson and accepting McSweeney’s resignation, critics argue his judgment is fundamentally flawed. Leading political figures, including Nigel Farage and Kemi Badenoch, have called for the PM to step down, describing the saga as a "betrayal of public trust" that could potentially bring down the Labour government.