Opposition parties have called for a formal inquiry into Lord Mandelson’s links to convicted sex offender Jeffrey Epstein after the senior Labour figure resigned from the party, saying he did not want to “cause further embarrassment” as scrutiny over his past associations intensified.

The resignation emerged just before 10:30pm, following the release of millions of documents by US authorities connected to Epstein. The publication marks the largest disclosure so far under a law that mandated the release of Epstein-related records last year, and it has reignited global attention on figures named within the files.

Lord Mandelson’s name appears among the documents, with some suggesting Epstein made payments to him between 2003 and 2004 totalling $75,000, now equivalent to about £55,000. Mandelson has firmly denied any knowledge of such transactions, stating he has no record or recollection of receiving the money and does not know whether the documents referencing him are authentic.

In a letter to Labour’s general secretary, Mandelson acknowledged the renewed controversy, writing: “I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this.” He stressed that allegations he believes to be false require investigation, but said he felt it was right to step aside from party membership while he examined the claims.

“Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me,” the letter continued. “While doing this, I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party.”

Mandelson also used the statement to reiterate an apology to victims of abuse linked to Epstein, saying: “I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.” He added that his decision was guided by what he believed to be the best interests of the party to which he said he had dedicated his life.

This is not the first time Mandelson’s past friendship with Epstein has had serious consequences. In September, he was dismissed by Prime Minister Keir Starmer from his role as the UK’s ambassador to the United States after earlier revelations about the relationship came to light.

Opposition figures argue that Mandelson’s resignation, while significant, does not go far enough and have urged an independent inquiry to establish the full facts. They say transparency is essential to maintain public trust, particularly given Mandelson’s long-standing influence in British politics.

For Labour, the episode presents a renewed test of its commitment to accountability and openness. By stepping down, Mandelson has sought to draw a clear line between himself and the party during the investigation process, a move some within Labour see as helping to limit further political damage while allowing questions to be examined thoroughly.

Twelve miners have been killed following a Russian drone strike in eastern Ukraine, according to the country’s largest private energy company, in an attack that has drawn renewed condemnation while also highlighting the resilience of emergency services and communities under fire.

Energy firm DTEK said a bus transporting workers home after a shift in the Dnipropetrovsk region was struck on Sunday. At least seven other people were injured in the attack and are receiving medical treatment. The company described the incident as a devastating loss for the mining community and pledged continued support for the families affected.

The attack came amid a series of Russian strikes reported overnight and on Sunday, which left at least two more people dead and nine injured elsewhere. Ukrainian officials said the incidents formed part of a wider pattern of attacks on civilian infrastructure.

In the southern city of Zaporizhzhia, six people were injured when a drone hit a maternity hospital, including two women who were in labour at the time. Despite the damage, local officials said medical staff acted swiftly to protect patients and evacuate those at risk.

Posting on Telegram, Zaporizhzhia regional head Ivan Fedorov described the strike as further “proof of a war directed against life”, while praising the rapid response of emergency workers and hospital staff who ensured no fatalities were reported at the facility.

Ukrainian Foreign Minister Andriy Sybiha said the hospital strike demonstrated that Russian President Vladimir Putin was pursuing a “war against civilians contrary to peace efforts”. He added that such attacks only strengthened Ukraine’s resolve to protect its people and continue seeking international support.

Later, Fedorov reported that three more people were injured in a separate strike on a residential area in the region, with emergency services again responding quickly to stabilise the situation and assist residents.

US President Donald Trump has announced Kevin Warsh as his choice to lead the US Federal Reserve when current chairman Jerome Powell’s four-year term comes to an end in May, a move that could usher in a new phase for American monetary policy amid heightened economic and political scrutiny.

Warsh, a former Federal Reserve governor, is no stranger to the institution or to speculation around its leadership. He previously served on the Fed’s board from 2006 to 2011 and was widely considered for the chairmanship during Trump’s first term in office. Known for his critical views of the central bank’s recent policy direction, Warsh is expected to favour a more accommodative stance, including support for lower interest rates in the near term.

The nomination comes at a sensitive moment for the Federal Reserve, as questions about its independence have intensified following Trump’s increasingly public criticism of Jerome Powell. The president has repeatedly expressed frustration that interest rates were not cut more aggressively, arguing that faster action would have better supported economic growth.

Those tensions deepened recently after federal prosecutors opened a criminal investigation into testimony Powell gave to the Senate concerning renovations to Federal Reserve buildings. The Department of Justice probe prompted a strong response from Powell, along with public messages of support from several former Fed chairs and prominent central bank leaders, underscoring the institutional significance of the moment.

Against this backdrop, Warsh’s re-emergence as a leading contender had been widely anticipated in recent weeks, as speculation mounted over who would eventually succeed Powell. Trump formally confirmed his choice on his Truth Social platform, praising Warsh in emphatic terms and saying he “will go down as one of the GREAT Fed Chairmen, maybe the best.”

If approved, Warsh would assume leadership of the world’s most influential central bank at a time of exceptional challenge and opportunity. Economists and financial markets are closely watching how the Fed navigates inflation concerns, growth prospects and political pressure, making the next chair’s approach particularly consequential.

Before taking office, however, Warsh must secure confirmation from the US Senate, a process that could involve extensive hearings and potentially lengthy delays. That scrutiny is likely to focus on his views about interest rates, financial regulation and the long-standing principle of central bank independence.

Even so, supporters argue that Warsh’s deep experience during periods of economic stress — including the global financial crisis — positions him well to guide the Fed through a complex environment.