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Sir Keir Starmer is to make his most controversial senior appointment yet by naming Peter Mandelson as UK ambassador to the US.

Lord Mandelson, 71, known as the “Prince of Darkness” from his days as a New Labour‘s spin doctor, will be the prime minister‘s link to Donald Trump.

‘Brutal’ figure ‘an inspired choice’ – politics latest

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.

U.S. President Bill Clinton, (R) walks with British Prime Minister Tony Blair (C) and Northern Ireland Minister Peter Mandleson up the steps of the Government buildings at Stormont during his visit to Northern Ireland December 13, 2000. Clinton is to meet with leaders from the Northern Ireland assembly to discuss progress on the Good Friday Agreement. IW/PS/WS
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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.

Former Labour leader Neil Kinnock (L) and Minister Without Portfolio Peter Mandelson listen to speeches on the first day of the Labour Party Conference September 29. Mandelson was unsuccessful in his attempt to secure a place on Labour's National Executive Committee with 68,023 votes it was announced today. BRITAIN LABOUR
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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.”

Britain's Business Secretary, Peter Mandelson, stands next to a stall selling clocks at the federation of small businesses conference in Aberdeen, Scotland March 19, 2010. REUTERS/David Moir (BRITAIN - Tags: POLITICS BUSINESS)
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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.

Britain's Prime Minister Gordon Brown (L) and Business Secretary Peter Mandelson listen to questions at an Employment Summit in central London January 12, 2009. Brown pledged on Monday to spend 500 million pounds ($754 million) to stem rising unemployment caused by the financial crisis. With the jobless total already at a decade-high and set to climb further as companies hit by the credit crunch lay off thousands of workers, Brown said he was determined to not to let unemployment spiral out of
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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.

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A remarkable step by the government – and Donald Trump, China and Reform UK have all played their part

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A remarkable step by the government - and Donald Trump, China and Reform UK have all played their part

When the sun sets on Scunthorpe this Saturday, the town’s steelworks will likely have a new boss – Jonathan Reynolds.

The law that parliament will almost certainly approve this weekend hands the business secretary the powers to direct staff at British Steel, order raw materials and, crucially, keep the blast furnaces at the plant open.

This is not full nationalisation.

But it is an extraordinary step.

The Chinese firm Jingye will – on paper – remain the owner of British Steel.

But the UK state will insert itself into the corporate set-up to legally override the wishes of the multinational company.

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Govt to take control of steel plant

A form of martial law invoked and applied to private enterprise.

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That will come at a cost to the taxpayer.

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No number has been specified, but there are wages to pay and orders to make at a site estimated to already be losing £700,000 a day.

There is also clear frustration in government at how the Chinese owners have engaged in negotiations around modernising the Scunthorpe site.

“Jingye have not been forthright throughout this process”, said the business secretary in his department’s official announcement about the new laws.

Time is so tight because of the nature of the steel-making process.

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Inside the UK’s last blast furnaces

Once switched off, blast furnaces are very hard to turn back on.

If this had happened in Scunthorpe – as seemed likely in a matter of days – then it would have been game over.

This move keeps the show on the road and opens up more time for talks over the long-term future of the plant.

While the official line in Whitehall is that “all options are on the table”, nationalisation seems increasingly likely.

That would need more legislation, if it was done – as seems likely – without the approval of the current owner.

Finding an alternative commercial partner has not been ruled out, but one is not waiting in the wings either.

As for what that long-term future looks like, with just five years of life left in the Scunthorpe blast furnaces, modernisation is inevitable.

Port Talbot’s plant saw its blast furnaces closed last year amid a switch to the more environmentally friendly electric arc furnaces and a loss of thousands of jobs.

A general view shows British Steel's Scunthorpe plant.
Pic Reuters
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A general view shows British Steel’s Scunthorpe plant.
Pic Reuters

Political figures in Wales are now questioning why nationalisation wasn’t on the table for this site.

The response from government is that the deal was done by the previous Tory administration and the owners of the South Wales site agreed to the terms.

But there is also a sense that this decision over British Steel is being shaped by the domestic and international political context.

Labour came to power promising to revitalise left-behind communities and inject a sense of pride back into places still reeling from the loss of traditional industry.

With that in mind, it would be politically intolerable to see the UK’s last two blast furnaces closed and thousands of jobs lost in a relatively deprived part of the country.

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One of the two blast furnaces at British Steel's Scunthorpe operation
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One of the two blast furnaces at British Steel’s Scunthorpe operation

Reform UK’s position of pushing for full and immediate nationalisation is also relevant, given the party is in electoral pursuit of Labour in many parts of the country where decline in manufacturing has been felt most acutely.

The geo-political situation is perhaps more pressing though.

Just look at the strength of the prime minister’s language in his Downing Street address – “our economic and national security are all on the line”.

The government’s reaction to the turmoil caused by President Donald Trump’s pronouncements on tariffs and security has been to emphasise the need to increase domestic resilience in both business and defence.

Becoming the only G7 nation unable to produce virgin steel at a time when globalisation appears to be in retreat hardly fits with that narrative.

It would also present serious practical questions about the ability of the UK to produce steel for defence and the broader switch to green energy production.

Then there is the intriguing subplot around US-China trade.

While this decision is separate from discussions with the White House on tariffs, one can imagine how a UK move to wrestle control of a site of national importance from its Chinese owner might go down with a US president currently engaged in a fierce trade war with Beijing.

This is a remarkable step from the government, but it is more a punctuation mark than a full answer.

The tension between manufacturing and decarbonisation remains, as do the challenges presented by a global economy appearing to fragment significantly.

But one thing is for sure.

As a political parable about changes to traditional industry and the challenges of globalisation, the saga of British Steel is hard to beat.

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Teachers in England gearing up for potential strike action

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Teachers in England gearing up for potential strike action

Teachers in England are once again gearing up for potential strike action after an overwhelming majority of National Education Union (NEU) members rejected the government’s latest pay offer.

In an electronic ballot, 93.7% of respondents turned down the proposed 2.8% pay rise, labelling it inadequate and unfunded.

If the pay offer had been accepted, schools would have had to find the money from existing budgets to pay for the increase – with many saying they are already overstretched.

Some 83% of teachers said they would be willing to take industrial action to secure a better deal.

Daniel Kebede general secretary of the National Education Union speaks to members holding an 'A Christmas Carol' themed rally outside Rachel Reeves' office in Leeds, as sixth form college teachers in England continue strike action into January over a pay dispute. Picture date: Friday December 13, 2024.
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Daniel Kebede, general secretary of the NEU. Pic: PA

The vote, which included 134,487 teachers in state schools across England (a turnout of 47.2%), was a clear signal that union leaders are not backing down.

In a statement after the vote, Education Secretary Bridget Phillipson said a move towards industrial action by teaching unions “would be indefensible”, given work being done to increase school attendance and urged the NEU to “put children first”.

NEU general secretary Daniel Kebede said years of what he called “real-terms pay cuts” had left the profession in crisis.

He also took aim at the government’s decision not to fund the offer centrally.

“This will only make things worse,” Mr Kebede said. “Our members tell us every day of the desperate state their schools are in due to lack of funding.”

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The union says the offer falls below inflation and lags behind private-sector wage growth.

But critics argue strike threats will only cause more damage to students still recovering from the disruption of the pandemic.

The union’s national executive is due to meet at its Harrogate conference next week, and all eyes will be on whether full-blown strike action will be announced.

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Protests in ‘ghost town’ where £400m ships don’t fit the harbour

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Protests in 'ghost town' where £400m ships don't fit the harbour

Those unfamiliar with Scotland’s so-called ‘ferry fiasco’ would barely believe it is a true story.

The new vessels cost quadruple their original price tag, one was delivered seven years late, the other is still being built, and both are too big to fit the main harbour for their daily journeys to and from the Isle of Arran.

But in this latest chapter of the scandal, the unbelievable is very much part of the script. And, as Sky News has been hearing, the consequences are brutal.

“It is completely and utterly nuts,” one exasperated campaigner exclaims as we stand overlooking the deserted Ardrossan Harbour on Scotland’s mainland.

SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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The town has been hit hard by the temporary closure of the harbour

SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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The new ferries are too big for the harbour’s jetty and require an £80m upgrade

SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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Ferries are being diverted along the coast to Troon and locals say businesses in Ardrossan are suffering

Ardrossan, on the Ayrshire coast, has been the main port for the ferry service to and from Arran for decades. It is the quickest, most efficient route.

But the 30-year-old ferry serving the islands for generations is failing and two new bespoke-designed ones were ordered, with them due to enter service from 2017.

map showing Scottish town of Ardrossan and the ferry route to the Isle of Arran (start  - end points are correct)
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Ardrossan has operated a ferry service to and from Arran for decades, as it is the quickest, most efficient route

The original £100m cost ballooned to £400m, the shipyard was bought by taxpayers amid financial crisis, one vessel finally started carrying passengers in January 2025 while the other is still being built.

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And to add insult to injury, both are too big for Ardrossan Harbour’s jetty to cope with and require an £80m upgrade.

In the meantime, services are being diverted along the coast to Troon.

SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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Ardrossan is the innocent victim of several costly blunders linked to the new ferry service

Protest as tensions rise in ‘ghost town’

Ardrossan was promised it would remain the primary port for connectivity to Arran. But now the community is in limbo and is fearing for its future.

Christine Cowie, from Save Ardrossan Harbour, told Sky News: “It is completely and utterly nuts.

“Why anybody would commission a ferry which doesn’t fit the harbour for the route it is meant for is crazy. I cannot understand it at all.

“Ardrossan is like an extension of Arran. A lot of people come here to the dentist and use other businesses they don’t have on the island which are losing money since the ferries have gone away.”

Christine Cowie from 'Save Ardrossan Harbour' campaign 
SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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Christine Cowie from Save Ardrossan Harbour says Ardrossan is fearing for its future

A botched design process, mismanagement and a string of costly blunders have given the project the label of one of the biggest procurement disasters in the history of Scottish devolution.

People from Arran are joining Ardrossan campaigners on the mainland for a protest on Saturday. Hundreds are expected to gather as tensions boil over.

The group’s chairwoman Frances Gilmour said Ardrossan has become a “ghost town”.

She said: “It is so quiet. It is spooky. It’s frankly a disgrace. Businesses are suffering.

“Economically, this is the route. This is the economic route. We have the infrastructure. We just need the berths fixed.”

Frances Gilmour, chair of 'Save Ardrossan Harbour' campaign
SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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Frances Gilmour thinks Ardrossan has become a ‘ghost town’

The 33-year-old MV Caledonian Isles, which has been away over the winter for extensive repairs, is expected to return to Ardrossan next month. But locals question how reliable and sustainable that vessel is.

On the edge of the once bustling harbour carpark is the Bute MOT garage.

Manager Scott Revans says they rely on customers from Arran previously hopping off the ferry and leaving their car for repairs at their centre.

He told Sky News: “The harbour is a ghost town. We’d get the passing trade doing whatever customers need from batteries to punctures. It has had an impact on us.”

Scott Revans, manager of Bute MOT garage
SN pics of Ardrossan harbour on Scotland's Ayrshire coast for a Connor Gillies story about the impact of the temporary closure of the port because ferries cannot berth there.
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Scott Revans, who manages a garage, has been hit by a drop in passing trade from Arran

Could taxpayers pick up the bill?

Ardrossan Harbour is owned by private company Peel Ports.

The Scottish government is currently exploring buying the port, but the talks are a secret, with campaigners feeling left in the dark.

No one involved in the discussions would answer questions from Sky News about when they expect to alert communities to the next steps.

The Glen Sannox ferry entered service in January. Pic: PA
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One of the two new ferries, the Glen Sannox, entered service in January but is too big to fit the main harbour. Pic: PA

Read more from Sky News:
Delayed ferry formally begins sailings
Fiasco-hit ferry removed from service

A spokesman for the Scottish government agency Transport Scotland said: “We absolutely understand people and communities’ views in favour of retaining Ardrossan as the mainland port and remain committed to ensuring the Arran ferry service is fit for the future.

“The Scottish government has instructed officials… to explore options on purchasing Ardrossan Port.

“We will of course update parliament once there is progress and an outcome to report, however, it would be inappropriate to get in the way of these complex and sensitive discussions.”

Jim McSporran, port director at Peel Ports Clydeport, said: “Peel Ports Group welcomes the Scottish government’s statement that it intends to explore the potential purchase of Ardrossan Harbour.

“Regardless of the outcome of this process, our willingness to invest in the harbour remains steadfast. We take comfort that the port continues to operate this lifeline route and that it remains the port of choice for the people and businesses of Arran and Ardrossan.”

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