Sir Keir Starmer was warned of the "reputational risk" of appointing Peter Mandelson as UK ambassador to the US, newly-released documents show.
The prime minister has always maintained he was unaware of the close links between Mandelson and the paedophile financier.
However, the documents show he was warned about the relationship.
The documents also reveal how Mandelson had asked for a £500,000 payoff after he was sacked by Sir Keir over his links with the American.
Live updates: https://news.sky.com/story/politics-latest-mandelson-files-starmer-labour-trump-12593360
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