Lord Mandelson has been picked as the UK’s new ambassador to the United States in a blow to Nigel Farage.

The former business secretary and effective deputy prime minister under Gordon Brown is set to take over from Dame Karen Pierce.

Prime Minister Sir Keir Starmer believes that Mandelson has the trade expertise and networking abilities to bolster the UK’s interests during a delicate period for relations with the US, reports The Times.

His appointment comes ahead of the inauguration of President-elect Donald Trump in January.

Peter Mandelson is set to be confirmed as the new UK ambassador to the US

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A government source told the BBC: “The fact the Prime Minister has chosen to make a political appointment and sent Lord Mandelson to Washington shows just how importantly we see our relationship with the Trump administration.

“We’re sending someone close to the prime minister with unrivalled political and policy experience, particularly on the crucial issue of trade. He’s the ideal candidate to represent the UK’s economic and security interests in the USA.”

Mandelson, an architect of the New Labour revolution, has reportedly been picked over three other potential names.

David Miliband, the former foreign secretary, Baroness Amos, a former development secretary, and Baroness Ashton of Upholland, who succeeded Mandelson as European trade commissioner, were all said to be in the running.

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Lord Peter Mandelson, an architect of the New Labour revolution, has reportedly been picked over three other potential names

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Mandelson has previously told The Times that Labour must find a path between the US and the EU if Donald Trump goes ahead with his pledge to introduce blanket tariffs on goods.

Some of Trump’s allies have warned that the UK will have to choose between a deal with the US and the “socialist” European Union. However, Starmer has rejected the suggestion that it is a “binary” choice.

Mandelson said: “We have got to navigate our way through this and have, I’m afraid, the best of both worlds…We have got to find a way to have our cake and eat it.”

It comes after Labour Chief of Staff Morgan McSweeney flew to Florida and Washington for meetings with key members of Trump’s team at the start of December.

Lord Peter Mandelson said he was “more in favour of a new relationship rather than a special one” with the US

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Speaking to the BBC, Lord Mandelson said he was “more in favour of a new relationship rather than a special one” with the US, and added: “Can I just make the point if you don’t mind: nobody has spoken to me about this job.

“I read about it in the papers but nobody has actually spoken to me about it, so let’s put it to one side.”

Pushed further on whether he would be interested in the Washington role, the former government minister said: “I would be very interested indeed in giving advice about trade to whoever is appointed.”

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