Britain's new ambassador to the US did not deny he stayed at the paedophile financier's New York home in 2009 after Epstein was jailed for child sex offences.
A member of Trump's team has said it was 'still not certain' Lord Peter Mandelson's credentials would be accepted by the incoming President amid strains with Prime Minister Sir Keir Starmer
The news comes as the prime minister said he believed the Labour politican had the necessary trade expertise and networking abilities to bolster the UK's interests.