PETER MANDELSON will leave the House of Lords in disgrace on Wednesday as police review allegations that the New Labour architect leaked confidential Downing Street files to paedophile financier Jeffrey Epstein.

Today the newly installed Lord Speaker Lord Forsyth of Drumlean told peers that the clerk of the Parliaments “has today received notification from Lord Mandelson of his intention to retire from the house, effective from February 4.

“I will formally notify this to the house tomorrow in the usual way.”

It came after PM Sir Keir Starmer suggested more details will emerge after the so-called Epstein files apparently showed his former US ambassador passing material to Epstein while serving as a cabinet minister in Gordon Brown’s Labour administration.

The Cabinet Office has referred material to the police after an initial review of documents released as part of the Epstein files found they contained “likely market sensitive information” and official handling safeguards had been “compromised,” No 10 said.

In a readout of Cabinet today, the PM’s official spokesman said that he told ministers “he was appalled by the information that had emerged over the weekend in the Epstein files.

“He said the alleged passing-on of emails of highly sensitive government business was disgraceful, adding that he was not reassured that the totality of information had yet emerged.”

Mr Mandelson has insisted Epstein’s money did not influence his actions in government as Scotland Yard reviews reports of alleged misconduct in a public office.

Sir Keir had earlier tasked officials with drafting legislation to allow Mr Mandelson’s peerage to be removed “as quickly as possible” amid a broader need for the House of Lords to be able to “remove transgressors” more quickly, his spokesman said.