Senior official ousted over Mandelson security row to face MPs

Political turmoil over Peter Mandelson’s security clearance — including the ousting of senior Foreign Office official Sir Olly Robbins and a vetting “no” verdict — raises short-term political risk for the UK. Robbins is expected to be questioned by the Foreign Affairs Committee on Tuesday amid scrutiny of No 10 and Prime Minister Keir Starmer’s statements, heightening uncertainty around governance. For markets, heightened political uncertainty can temporarily increase volatility and weigh on domestic-focused assets such as the UK 100 index, particularly if the saga undermines investor confidence ahead of parliamentary appearances. Overall impact is likely to be short-lived unless the controversy triggers wider governmental instability or policy consequences.