A criminal investigation has been launched into allegations Peter Mandelson passed market-sensitive information to Jeffrey Epstein.

The 72-year-old is set to leave his role in the House of Lords, the Lord Speaker confirmed this afternoon.

Commander Ella Marriott, of the Metropolitan Police, said: “Following the further release of millions of court documents in relation to Jeffrey Epstein by the United States Department of Justice, the Met received a number of reports into alleged misconduct in public office including a referral from the UK Government.

“I can confirm that the Metropolitan Police has now launched an investigation into a 72-year-old man, a former Government minister, for misconduct in public office offences.

“The Met will continue to assess all relevant information brought to our attention as part of this investigation and won’t be commenting any further at this time.”

Sir Keir Starmer said earlier today that he was “appalled” by the revelations relating to Mandelson in recent days, demanding the Government “move at pace”.

A Downing Street spokesman said: “It is right that Peter Mandelson will no longer be a member of the House of Lords. As the Prime Minister said this morning, Peter Mandelson let his country down.”

Meanwhile, the Liberal Democrats have called on Sir Keir Starmer to open a national public enquiry.

Party leader Sir Ed Davey said: “The Prime Minister has questions to answer. He has to be held to account for appointing Peter Mandelson to the most prestigious role in our diplomatic life, the ambassador to the United States.

“What did the Prime Minister know? What was he told? And why wasn’t he told more?

“We really need to get to the bottom of that. The Prime Minister has to answer those questions.”