The Mandelson files and Labour's loyalty problem

Private messages from Peter Mandelson, the UK’s ambassador to the United States and the most senior Labour figure in the diplomatic service, were released on June 1, with Mandelson reportedly describing the No. 10 operation as “beleaguered and bereft.” The BBC’s political editor Chris Mason assessed that the “decision to appoint Mandelson continues to inflict damage” on the Starmer government. The release came on the same day that Wes Streeting, the former Health Secretary, resigned — reportedly seen leaving Downing Street minutes after arriving — and was replaced by James Murray. Meanwhile, Andy Burnham, the Mayor of Manchester, is standing in the Makerfield by-election as a potential vehicle for a return to Westminster, and the BBC’s coverage describes an active race to replace Starmer as Labour leader — even as the Prime Minister insists he intends to remain. The accumulated damage from personnel crises, leaked messages, and ministerial departures is testing the political resilience of a government that won an enormous majority less than two years ago.

The received wisdom

The sympathetic read of Keir Starmer’s predicament is that he is a competent, serious Prime Minister confronting extraordinary inherited problems — a stretched public sector, a stagnant economy, residual Brexit complications, and a global security environment that has deteriorated faster than any government could reasonably have planned for. The Mandelson appointment, on this reading, was a bold attempt to leverage one of Labour’s most skilled diplomatic operators at a moment when the UK’s relationship with the Trump administration required extraordinary finesse. That Mandelson has generated controversy is unsurprising — he is, as he has always been, a figure who creates turbulence — but the alternative of a less capable ambassador would have been worse. The Streeting resignation is, on this reading, a normal feature of cabinet government: people resign, new people come in, governments adapt. Tony Blair went through multiple cabinet reshuffles. The crisis narrative is, as it always is, exaggerated by a media that mistakes noise for fundamental instability.

A different read

There is a pattern emerging from the Starmer government that resembles nothing so much as the later Blair years — not the early Blair years of discipline and message control, but the post-2003 period when the accumulated weight of controversial decisions began producing a self-sustaining cycle of leaks, resignations, and personal score-settling. The Mandelson appointment was not simply a bold diplomatic choice; it was a signal about how Starmer understands political loyalty. Mandelson is the quintessential New Labour operator — a man whose instinct is to manage, to manipulate, and to regard the messy processes of democratic accountability as obstacles to be navigated rather than norms to be respected. His leaked description of No. 10 as “beleaguered and bereft” is entirely consistent with his long history of conducting parallel political operations while nominally serving whoever employs him.

The BBC noted that Tony Blair has simultaneously been calling for Labour to “change direction” — to which Starmer has pushed back, defending his record. This triangulation is itself revealing. Blair’s intervention cannot easily be dismissed as hostile; it comes from the most electorally successful Labour leader in the party’s history, and it reflects a genuine strategic disagreement about whether the current government’s policy direction is sustainable. Starmer’s decision to push back publicly against Blair rather than absorbing the critique privately suggests either extraordinary confidence in his own political judgment or a defensiveness that comes from sensing that the critique is uncomfortably accurate.

The structural problem is one that Conservative commentators diagnosed early and that Labour’s internal critics are now beginning to articulate: Starmer’s government was very good at the discipline required to win an election but has been less good at the different discipline required to govern. Winning requires message coherence and the suppression of internal disagreement. Governing requires the integration of different perspectives, the management of competing departmental interests, and the tolerance of friction that comes from genuine deliberation. A government that trains its reflexes around suppressing disagreement tends, when things go wrong, to produce the kind of spectacular implosions visible in the Mandelson files — because the grievances that were suppressed in the interest of unity find expression through other channels.

Wes Streeting’s departure is particularly significant given that he was, on most assessments, one of the government’s more capable and intellectually serious ministers. Before resigning, he had been discussing a National Insurance cut and expanded North Sea drilling — positions well to the right of the government’s public stance and indicative of someone who had concluded that the fiscal trajectory was unsustainable. If Streeting reached that conclusion from the inside of the Health brief — with access to NHS cost projections and public sector pay data that backbenchers do not have — that is more significant than any leaked private message from a diplomat.

Andy Burnham’s positioning through the Makerfield by-election deserves close attention. Burnham has spent years building a distinctive political identity as Manchester’s mayor — one that blends northern pragmatism with social solidarity, and that has avoided association with the metropolitan progressivism that made Corbynism unelectable while also avoiding the technocratic blandness of Blairism at its most risk-averse. He is the most credible Labour leadership alternative precisely because he is neither fish nor fowl — he cannot be easily placed on the Blair/Brown/Corbyn axis that dominates Westminster thinking.

What to watch

  • The Makerfield by-election result: a strong Burnham victory significantly changes the internal Labour dynamic, a weak one removes him from contention
  • Whether more of the “Mandelson files” content is released — the BBC suggested ministers were “braced” for further document drops, indicating the current release may be only a fraction of the available material
  • Starmer’s response to Blair’s call for a change of direction: whether he attempts to incorporate the critique without appearing to have capitulated
  • The fiscal position: the next OBR forecast will either validate Streeting’s reported concerns or contradict them, and the political consequences in either direction are significant

— J