Angela Rayner 'warned Starmer not to appoint Mandelson' as Labour MP tells PM he is 'on thin ice' over Epstein scandal

It comes after police raided two properties linked to Mandelson on Friday afternoon, seizing evidence for the Met’s criminal investigation into the former Peer.

Reports of Rayner’s warnings come as pressure mounts on the Prime Minister, with a backbench Labour MP warning he is on "thin ice" over this latest scandal.

According to the Times, former deputy PM Rayner privately warned Sir Keir last year that sending Mandelson to Washington would be a mistake.

Read more: 'Significant volume of material' to be reviewed in appointment of Mandelson, Starmer says, as police search properties linked to former ambassador

Despite these apparent warnings, Sir Keir instead chose to believe Mandelson when he claimed he “barely knew” the paedophile financier.

The Prime Minister is reportedly considering standing down over this latest scandal, one Cabinet minister said on Friday.

Sir Keir’s team denies this, insisting the Prime Minister will remain in post.

And for his part, the Prime Minister told MPs on Friday that he would “rise to the challenge” and that his party was committed to the “politics of service and making a difference”.

“We must not lose what brought us here, which is the politics of service and making a difference. Because that behaviour [of Mandelson] challenges what we stand for and that is corrosive and a challenge. We must rise to that challenge.”

It comes as backbench Labour MP Bell Ribeiro-Addy warned the PM he is on “thin ice” and must change things quickly.

Speaking to LBC, Ms Ribeiro-Addy said: “What I feel at the moment is that we are in a situation where we've used up all of the potential blunders and mistakes that could have been made at this point.

“It's something that has been used up in our first 18 months of government and can't happen again.

“So we're on thin ice. The reality is now we need clear and decisive action, radical change. And if that doesn't happen then there will be the ultimate change.

“You can only see it going one way.”

Rayner is believed to have amassed a £1million war chest to stake her claim for Sir Keir’s position, but doubt has been cast following an ongoing HM Revenue and Customs investigation into her purchase of an £800,000 flat.

The scandal led to her resignation as Deputy Prime Minister, Deputy Leader of the Labour Party, and Housing Secretary, after it was revealed that she had not paid stamp duty on the purchase of the seaside bolthole.

Rayner told an MP she "will be ready" to launch a leadership challenge, despite the ongoing probe into her tax affairs, the Daily Mail reported on Friday.

Another Labour figure, who has previously served on Sir Keir's front bench told The Telegraph: "Presumably Angela Rayner, if she got elected, would have a completely different agenda.

"If you come in with a completely different agenda, then the country legitimately says 'we didn't vote for this.'

But they added: "So what are the grounds for refusing a general election? You can claim constitutional grounds, but in the world of frenzied media, of TikTok, YouTube and GB News, is it really sustainable? It doesn't feel sustainable to me."

It comes amid a desperate week for the Prime Minister, who was left fighting for his political career after issuing an apology for appointing Lord Mandelson as US Ambassador despite his known ties to Jeffrey Epstein.

In a letter to the Parliament’s Intelligence and Security Committee (ISC) late on Friday, Sir Keir said it was important that documents are made available to Parliament "as soon as possible."

He insisted the Government wanted to ensure "urgency and transparency," amid pressure to reveal the extent of what was known about the peer’s relationship with paedophile financier Jeffrey Epstein when he was picked for the job.

Writing to the Committee's chairman Lord Beamish, Sir Keir said: "Thank you for your letter following the Humble Address relating to Peter Mandelson’s appointment as His Majesty’s Ambassador to the United States of America.

"I have asked the Cabinet Secretary to work with you and your committee to agree the detail of how material that may be prejudicial to the UK’s national security and international relations is shared and reviewed, having regard to the requirements of the Metropolitan Police investigation.

"As you note in your letter, it is important that documents are made available to Parliament as soon as possible, noting that there is likely to be a very significant volume of material that will need to be reviewed to establish whether it is in scope.

"Above all else, the Government wishes to engage constructively with the ISC, and to ensure that Parliament’s instruction is met with the urgency and transparency it deserves. I have asked the Cabinet Secretary to follow up."

Earlier on Friday, police officers could be seen searching two addresses linked to Mandelson, one n Wiltshire and the other Camden, north London, which form form part of the misconduct in public office probe.

Police left the London property carrying several boxes, with seven officers exiting the front door of the house in Camden at about 8.23pm.

One could be seen carrying a white cardboard box and another with a blue plastic one. Reporters’ cameras flashed as they drove away in cars that had been parked outside the building.

Documents released as part of the so-called Epstein files led to allegations that while Lord Mandelson was business secretary following the 2008 financial crisis, he passed on market-sensitive information to the sex offender.

The files laid bare the apparent extent of Mandelson’s relationship with Epstein, as well as leading to accusations relating to his time in Government.

Sir Keir apologised to the victims of Epstein in the House of Commons on Thursday, and admitted he knew of the ties but admitted not to their true extent.

Mandelson has yet to speak publicly, but it is understood he maintains he did not act criminally and that his actions in 2008 were not for personal gain.

LBC has contacted Angela Rayner for comment.