The former cabinet minister and Brussels commissioner is a consummate political networker and his appointment will be seen by supporters as a masterstroke.
But he has also been one of the most divisive figures in British politics over many years and his appointment will be seen by Labour left-wingers as an act of cronyism by the PM.
Lord Mandelson had to resign from Tony Blair‘s cabinet twice, first over an undeclared bank loan and then over intervening in a passport application by a top Indian businessman.
A plum job
The Washington role, seen as the most glittering diplomatic post in the UK government, is due to become vacant when current ambassador Karen Pierce steps down early next year.
The perks of the job include the luxurious ambassador’s residence in Massachusetts Avenue, a magnificent Queen Anne mansion designed by top architect Sir Edwin Lutyens.
Lord Mandelson’s appointment is the first political rather than diplomatic appointment to Washington since Peter Jay, former prime minister James Callaghan’s son-in-law, in 1977.
Image: Mandelson alongside Tony Blair and Bill Clinton in Northern Ireland in 2000
Farage among big name backers
Sir Keir is said by insiders to believe he has the trade experience and networking abilities to boost UK interests in the US during the tricky period of a Trump second presidency – with the prospect of tariffs looming.
Crucially, he has become a close ally of Sir Keir’s new chief of staff, Morgan McSweeney, and is backed by Foreign Secretary David Lammy. It is claimed Lord Mandelson was seen in the Foreign Office last week.
And significantly, Reform UK leader Nigel Farage, just back from talks with Trump allies, has said Lord Mandelson is “a very clever man” who can “master his brief” and would be “respected” by the president-elect’s team.
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Trump’s threat of tariffs explained
The cap on a high-profile career
His appointment is not a total surprise. For the past month, he has been seen by Labour insiders as the clear frontrunner on a shortlist of four, also including former foreign secretary David Miliband.
The others were Baroness Ashton, also a former senior Brussels official, and Baroness Amos, a former international development secretary under Mr Blair.
Mr Miliband’s name was touted by Sue Gray, Sir Keir’s now ousted chief of staff, while Baronesses Amos and Ashton, who have strong links to the Democrats, were seen as a good fit if Kamala Harris had won the presidential election.
For Lord Mandelson, the appointment is likely to cap a high-profile political career which began as a TV producer and then Labour’s director of communications under Neil Kinnock in 1985.
Image: Mandelson was a speechwriter for former Labour leader Neil Kinnock
‘A fighter, not a quitter…’
He was seen as a brilliant if ruthless spin doctor, who masterminded the birth of New Labour but would berate newspaper editors when unfavourable stories were written by their political journalists.
He became MP for Hartlepool in 1992 and helped propel Mr Blair to the leadership of the party after John Smith’s death in 1994, a move that led to a bitter feud with Gordon Brown.
Then he got his first cabinet job, trade and industry secretary, in 1998, but was forced to quit months later after failing to declare a home loan from Labour millionaire Geoffrey Robinson to his building society.
He bounced back as Northern Ireland secretary in 1999, but was forced to resign a second time over claims he helped businessman Srichand Hinduja with an application for UK citizenship.
When he held his seat in Hartlepool in the 2001 general election, he made a passionate and defiant victory speech in which he declared: “I’m a fighter, not a quitter.”
Image: Mandelson was MP for Hartlepool from 1992 until 2004
…until he was
Yet three years later he did quit as an MP, when he became a trade commissioner in Brussels, which supporters in his new post claim gave him vital experience in trade talks with president-elect Trump.
But in his most spectacular political comeback until now, in 2008 his old foe Gordon Brown, by now prime minister but facing challenges to his leadership, brought him back as business secretary with a peerage.
A year later Mr Brown awarded him the grand title, previously held by Michael Heseltine under John Major, of first secretary of state, a position he held until Labour’s election defeat in 2010.
Image: Mandelson was brought back into the fold by Gordon Brown ahead of the 2010 election
Blair’s famous quote
But he was very much a Blairite rather than a soulmate of Mr Brown. And in the run-up to Sir Keir’s election victory this year he was back in the fold, offering advice on campaigning and policy.
Acknowledging that Mr Mandelson was a controversial and divisive figure, Mr Blair declared in 1996: “My project will be complete when the Labour Party learns to love Peter Mandelson.”
Clearly the current Labour leadership loves him sufficiently to hand him this plum job, though many on the left of the party will be furious about his appointment.
China’s plan to liquidate confiscated crypto through Hong Kong exchanges isn’t simply a policy — it’s to control global digital asset markets and outmaneuver the US.
The Online Safety Act is putting free speech at risk and needs significant adjustments, Elon Musk’s social network X has warned.
New rules that came into force last week require platforms such as Facebook, YouTube, TikTok and X – as well as sites hosting pornography – to bring in measures to prove that someone using them is over the age of 18.
The Online Safety Act requires sites to protect children and to remove illegal content, but critics have said that the rules have been implemented too broadly, resulting in the censorship of legal content.
X has warned the act’s laudable intentions were “at risk of being overshadowed by the breadth of its regulatory reach”.
It said: “When lawmakers approved these measures, they made a conscientious decision to increase censorship in the name of ‘online safety’.
“It is fair to ask if UK citizens were equally aware of the trade-off being made.”
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3:53
What are the new online rules?
X claims the timetable for platforms to meet mandatory measures had been unnecessarily tight – and despite complying, sites still faced threats of enforcement and fines, “encouraging over-censorship”.
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“A balanced approach is the only way to protect individual liberties, encourage innovation and safeguard children. It’s safe to say that significant changes must take place to achieve these objectives in the UK,” it said.
A UK government spokesperson said it is “demonstrably false” that the Online Safety Act compromises free speech.
“As well as legal duties to keep children safe, the very same law places clear and unequivocal duties on platforms to protect freedom of expression,” they added.
Users have complained about age checks that require personal data to be uploaded to access sites that show pornography, and 468,000 people have already signed a petition asking for the new law to be repealed.
In response to the petition, the government said it had “no plans” to reverse the Online Safety Act.
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Why do people want to repeal the Online Safety Act?
Reform UK’s leader Nigel Farage likened the new rules to “state suppression of genuine free speech” and said his party would ditch the regulations.
Technology Secretary Peter Kyle said on Tuesday that those who wanted to overturn the act were “on the side of predators” – to which Mr Farage demanded an apology, calling Mr Kyle’s comments “absolutely disgusting”.
Regulator Ofcom said on Thursday it had launched an investigation into how four companies – that collectively run 34 pornography sites – are complying with new age-check requirements.
These companies – 8579 LLC, AVS Group Ltd, Kick Online Entertainment S.A. and Trendio Ltd – run dozens of sites, and collectively have more than nine million unique monthly UK visitors, the internet watchdog said.
The regulator said it prioritised the companies based on the risk of harm posed by the services they operated and their user numbers.
It adds to the 11 investigations already in progress into 4chan, as well as an unnamed online suicide forum, seven file-sharing services, and two adult websites.
Ofcom said it expects to make further enforcement announcements in the coming months.
Already, in the true spirit of Mr Corbyn’s politics, there is talk of an open leadership contest and grassroots participation.
Some supporters of the new party – which is being temporarily called “Your Party” while a formal name is decided by members – believe that allowing a leadership contest to take place honours Mr Corbyn’s commitment to open democracy.
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Jeremy Corbyn open to ideas on new party name
They point out that under Mr Corbyn’s leadership of the Labour Party, members famously backed plans to make it easier for local constituency parties to deselect sitting MPs – a concept he strongly believed in.
His allies now say the former Labour leader, who is 76, is open to there being a leadership contest for the new party, possibly at its inaugural conference in the autumn, where names lesser known than himself can throw their hat into the ring.
“Jeremy would rather die than not have an open leadership contest,” one source familiar with the internal politics told Sky News.
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However, there have been suggestions that Ms Sultana appears to be less keen on the idea of a leadership contest, and that she is more committed to the co-leadership model than her political partner.
Those who have been opposed to the co-leadership model believe it could give Ms Sultana an unfair advantage and exclude other potential candidates from standing in the future.
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Corbyn’s new political party isn’t ‘real deal’
One source told Sky News they believed Mr Corbyn should lead the party for two years, to get it established, before others are allowed to stand as leader.
They said Ms Sultana, who became an independent MP after she was suspended from Labour for opposing the two-child benefit cap, was “highly ambitious but completely untested as leader” and “had a lot of growing into the role to do”.
“It’s not about her – it’s about taking a democratic approach, which is what we’re supposed to be doing,” they said.
“There are so many people who have done amazing things locally and they need to have a chance to emerge as leaders.
“We are not only fishing from a pool of two people.
“It needs to be an open contest. Nobody needs to be crowned.”
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Corbyn’s new party shakes the left
While Mr Corbyn and Ms Sultana undoubtedly have the biggest profiles out of would-be leaders, advocates for a grassroots approach to the leadership point to the success some independent candidates have enjoyed at a local level – for example, 24-year-old British Palestinian Leah Mohammed, who came within 528 votes of unseating Health Secretary Wes Streeting in Ilford North.
Fiona Lali of the Revolutionary Communist Party, who stood in last year’s general election for the Stratford and Bow constituency, has also been mentioned in some circles as someone with potential leadership credentials.
However, sources close to Mr Corbyn and Ms Sultana downplayed suggestions of any divide over the leadership model, pointing out that their joint statement acknowledged that members would “decide the party’s direction” at the inaugural conference in the autumn, including the model of leadership and the policies that are needed to transform society.
A spokesperson for Mr Corbyn told Sky News: “Jeremy will be working with Zarah, his independent colleagues, and people from trade unions and social movements up and down the country to make an autumn conference a reality.
“This will be the moment where people come together to launch a new democratic party that belongs to the members.”