The prime minister appointed Peter Mandelson as US ambassador, despite his relationship with Jeffrey Epstein being flagged in the vetting process, after the former Labour peer presented the paedophile financier “as someone he barely knew”, according to a Downing Street source.

It appears to be an attempt to clarify Sir Keir Starmer’s earlier comments in the Commons.

The PM was asked by Kemi Badenoch at PMQs this afternoon whether official security vetting he received mentioned Mandelson’s ongoing relationship with Epstein.

“Yes it did,” Starmer replies.

Watch here as Starmer says he “regrets” appointing Mandelson

But he also said Mandelson “lied repeatedly” to the government during the vetting process, and that he regretted his appointment.

In a statement, a Downing  Street source explained: “Before Peter Mandelson was appointed, there had been reports that linked him with Jeffrey Epstein, including after he was first convicted. 

“This was looked into as part of the appointment process, as the prime minister referenced today.

“Peter Mandelson lied to the prime minister, hid information that has since come to light and presented Epstein as someone he barely knew.

“In September, new information revealed the depth and extent of the relationship was materially different to what was known at the time of his appointment and that he had utterly misled the prime minister. He was swiftly sacked.”

The latest clarification comes after the PM was forced to concede on his amendment to the Conservatives Party’s motion, calling for all documents relating to Mandelson’s vetting to be published. 

Earlier, the PM insisted those relating to national security and international relations would be exempted.

But Labour MPs pushed back, leading to a new amendment, saying that these documents will be examined by parliament’s Intelligence and Security Committee (ISC).

The government hopes this change means the amendment may be nodded through by pliant Labour MPs, without a vote.