Mandelson rubbishes claim he is 'hired out' at parties

The former Cabinet Minister, who has twice been forced to resign from the Cabinet after being embroiled in scandal, has been accused of exploiting his high political profile to charge up to £6,000 for personal appearances.

But last night, Mr Mandelson denied any involvement in the affair.

He told The Northern Echo: "It is complete and utter rubbish, from beginning to end."

The Sunday Times claimed senior politicians are being "hired out" by celebrity agencies to make personal appearances at parties. It is regarded as acceptable for politicians to earn money for making speeches at gatherings, but this is the first time it has been suggested such large sums are being charged for them to do little more than drink champagne and make small talk.

The Sunday Times claimed to have been quoted a price of £6,000 for the former Northern Ireland Secretary to attend a reception, in Richmond-on-Thames, for two hours.

Mr Mandelson has twice been rocked by scandal but was just beginning to remerge as a political force in the wake of the billionaire Hinduja brothers' passport affair.

In October, he was pictured with Tony Blair for the first time since his second resignation from the Cabinet, earlier this year. He had recently been cleared of any involvement in the Hinduja brothers' affair by the Hammond inquiry.

Soon after, the famous strategist was named as chairman of one of the Government's policy think-tanks, fuelling growing speculation that he could be accepted back into the Cabinet for a third time.

This came only months after he was re-elected in his Hartlepool constituency.

Mr Mandelson was rescued from the political wilderness and appointed Northern Ireland secretary, replacing Redcar MP Mo Mowlem, in 1999.

Mr Blair had been planning a strategy to reinstate his friend ever since Mr Mandelson's first resignation as Trade Secretary, over the revelation of his £373,000 home loan from fellow Government minister Geoffrey Robinson.