Jeffrey Epstein scandal rocks Downing Street, core aide steps down, Scottish Labour leader forces Starmer to resign.

Scottish Labour leader Sarwar publicly called on UK Prime Minister Starmer to resign on Monday, citing his controversial appointment of Peter Mandelson as the UK ambassador to the US. Sarwar has become the highest-ranking Labour figure to withdraw his support for Starmer so far. Sarwar said at a press conference, "The interference must end, and there needs to be a change in the leadership at Downing Street," emphasizing that if the failures at the Prime Minister level continue, it will not be beneficial for Labour to win in the Scottish Parliament elections in May. Several Labour backbenchers had already called on Starmer to take responsibility for his decision to appoint Mandelson at the end of 2024. The Prime Minister has admitted that he was aware of Mandelson's conviction in a case involving a minor in 2008 when he made the appointment and still maintained contact with the convicted sex offender Jeffrey Epstein. A spokesperson for Starmer said the Prime Minister currently has no plans to resign and will meet with members of the Labour parliamentary party on Monday evening. However, there is a sense of crisis spreading in 10 Downing Street, with the second senior aide resigning within 24 hours after Chief of Staff Morgan McSweeney resigned, the Prime Minister's Director of Communications Tim Allan also announced his resignation. Despite this, Starmer stated that he will continue to push forward with his agenda and called politics "a force for good." Several cabinet members subsequently voiced their support for the Prime Minister on social media, including Deputy Prime Minister David Lammy and Chancellor of the Exchequer Rachel Reeves. However, Sarwar's withdrawal of support is seen as a significant blow to Starmer, especially with the upcoming Scottish Parliament elections in May. The political uncertainty has quickly spread to the financial markets. In early trading on Monday, long-term UK bonds and the pound were under pressure: the yield on the 10-year government bond rose by about 8 basis points to 4.60%, and the pound fell by 0.7% against the euro to 87.4 pence at one point. Investors are concerned that if Starmer or Reeves resign, their successors may be more inclined to increase government spending. As the documents released by the US Department of Justice last month further revealed Mandelson's relationship with Epstein, doubts about Starmer's leadership have continued to grow. Downing Street officials are privately preparing to deal with pressure from cabinet members or threats of resignation. A cabinet aide said that the odds of Starmer "surviving this week are fifty-fifty."