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Keir Starmer is to face Prime Minister’s Questions amid scrutiny over the appointment of Lord Peter Mandelson as Britain’s US ambassador.

The Metropolitan Police announced on Tuesday that it has launched a criminal investigation into Lord Mandelson following claims he passed market-sensitive information to paedophile financier Jeffrey Epstein.

Files released by the US Department of Justice apparently showed Lord Mandelson passing material to Epstein while serving as business secretary in Gordon Brown’s Labour administration as it dealt with the 2008 financial crash and its aftermath.

The government said it was drafting legislation that would strip Mandelson of his peerage before it was announced by the Lords Speaker that Mandelson is retiring from the House of Lords.