The Prime Minister’s longtime aide has resigned as he appeared to take the blame for the ‘wrong’ decision to appoint Peter Mandelson.

Morgan McSweeney has resigned as Sir Keir Starmer’s chief of staff after coming under fire in the Lord Peter Mandelson scandal.

The Prime Minister’s right-hand man had faced intensifying calls from within the Labour Party to go after being blamed by many for pushing the appointment of Lord Mandelson as ambassador to the US.

The peer was sacked last year over his relationship with paedophile financier Jeffrey Epstein, but anger in Westminster has intensified after the latest release of documents which showed he leaked information to his friend – with whom he stayed close after his conviction for child sex offences – while he was a government minister.

In a statement, Mr McSweeney said the decision to appoint Lord Mandelson to the top diplomatic job was “wrong”, and said he took “full responsibility” for advising Sir Keir to go ahead.

“In the circumstances, the only honourable course is to step aside,” he said.

“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.”

He also said the due diligence and vetting process, which failed to disprove Lord Mandelson’s claims that he barely knew the late financier, “must now be fundamentally overhauled”.

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