Sir Keir Starmer is facing growing anger among Labour MPs and renewed speculation about his future after being forced to publish files about his decision to appoint Peter Mandelson as the UK's US ambassador.
The government had signalled it would release most of the documents following revelations about Lord Mandelson's relationship with convicted paedophile Jeffrey Epstein.
Tap here for the latest on the Epstein files
But the prime minister's original plan was for his top civil servant to determine whether any should remain secret on national security grounds, or because they could prejudice international relations.
He was forced into a climbdown after interventions from senior Labour MPs during a dramatic Commons session on Wednesday, including former deputy prime minister Angela Rayner, while Conservative leader Kemi Badenoch accused Sir Keir of an attempted "cover-up".
MPs eventually backed a compromise that will see parliament's Intelligence and Security Committee determine what should be done with the more sensitive files - but it leaves Sir Keir in the most perilous position of his premiership.
Sky News political editor Beth Rigby described the mood in parliament as a "tinderbox", with one senior ally of the prime minister unwilling to rule out resignations from government.
"Temperatures are running high," they said.
Police probe delays release of files
Despite the Commons drama, it is unclear when any documents will be shared with parliament and published by the government amid a police investigation into Lord Mandelson for misconduct in public office.
The Metropolitan Police said it had advised the government "the release of specific documents could undermine our current investigation". "We therefore asked them not to release certain documents at this time," the force added.
Rigby said there is "deep frustration" inside Number 10 about the situation, as it's hoped the release of the files will support the prime minister's assertion that Lord Mandelson repeatedly lied to him about the depths of his relationship with Epstein.
"But with their hands tied, and the mood this febrile, the prime minister is in a precarious position," she added.
Starmer: I regret appointing Mandelson
Downing Street has conceded that the prime minister was aware of Lord Mandelson's links to Epstein when his appointment as US ambassador was confirmed early last year.
Speaking at Prime Minister's Questions, Sir Keir insisted a due diligence process had taken place, but said: "What was not known was the depth, the sheer depth, and the extent of the relationship."
"He lied about that to everyone for years, and new information was published in September showing the relationship was materially different from what we'd been led to believe," he told MPs.
"When the new information came to light, I sacked him."
He added: "I regret appointing him. If I knew then what I know now, he would never have been anywhere near government."
Sir Keir is set to face questions from the media today about the crisis engulfing his administration, after he gives a speech about plans for investment in the UK's most deprived communities.
How did we get here?
The scandal erupted again last Friday when the US Department of Justice published a tranche of over three million Epstein files documents, which included emails that appear to show Lord Mandelson shared sensitive internal government information with the financier while serving in Gordon Brown's government.
It led to the Metropolitan Police opening its investigation into Lord Mandelson for alleged misconduct in public office, which followed referrals from both the Cabinet Office and Mr Brown.
Lord Mandelson resigned his membership of the Labour Party on Sunday. He denied any record or recollection of the payments, but said he did "not wish to cause further embarrassment" to the party.
Sky News has approached representatives for Lord Mandelson for comment.
Being named in the Epstein files is not a sign of wrongdoing, and Lord Mandelson has expressed regret about his past ties to the paedophile, saying in a statement: "I was wrong to believe Epstein following his conviction, and to continue my association with him afterwards. I apologise unequivocally for doing so to the women and girls who suffered."
Lord Mandelson has not responded to the latest allegations. However, in an interview with The Times carried out last week, but published on Monday, he referred to a "handful of misguided historical emails, which I deeply regret sending", and described Epstein as "muck that you can't get off your shoe".
(c) Sky News 2026: PM in 'precarious position' after MPs force climbdown over Mandelson files release

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