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Lord Peter Mandelson leaked a sensitive UK government document to Jeffrey Epstein while he was business secretary that proposed £20bn of asset sales and revealed Labour’s tax policy plans.
The memo, dubbed “Business Issues”, was written on June 13 2009 by Nick Butler, who at the time was special adviser to the then prime minister Gordon Brown.
The confidential document, which was released by the US Department of Justice as part of a tranche of millions of files relating to Epstein, had been sent to British government officials including cabinet secretary Jeremy Heywood.
The memo called for a boost to private sector investment in the wake of the financial crash via tax incentives.
“The only major device available to government is a further extension of the capital allowances announced in the Budget,” Butler argued. “We should consider raising the capital allowance on new investment to 75 per cent (or even more) for the remainder of this tax year.”
A screenshot of the 2009 email exchange between Peter Mandelson and Jeffrey Epstein © US Department of Justice
He also said Brown should authorise asset sales “of even £20bn” to relieve the debt burden, reduce borrowing costs and provide funds for new investment.
“It would also enable us to go into the election with a pledge not to make any further increase in corporate or top rate income taxes in the next parliament,” Butler wrote.
The highly sensitive document was forwarded by Mandelson to Epstein on the same day with the comment: “Interesting note that’s gone to the PM.”
Epstein replied: “What salable assets?”
“Land, property I guess,” Mandelson responded.
The Labour government announced the plans for the asset sale four months later, suggesting that £16bn could be raised through the disposals.
Mandelson was approached for comment on Monday.
The revelation will add to escalating pressure on Mandelson, who resigned from the Labour Party on Sunday. Documents released at the weekend showed that he received three payments of $25,000 each from Epstein when he was a backbench MP in 2003 and 2004.
His partner Reinaldo Avila da Silva also received thousands of pounds from Epstein in 2009 and 2010 when Mandelson was business secretary, the files showed.
On Monday morning, opposition parties called on Sir Keir Starmer, the prime minister, to authorise an investigation into the former Labour cabinet minister, who he appointed as Washington ambassador last year.
Starmer sacked Mandelson from that post in September over his links to Epstein.
“Keir Starmer and his chief of staff [Morgan McSweeney] appointed Mandelson ambassador despite his relationship with Epstein, and then refused to act even as the mountain of evidence against him grew,” said Kemi Badenoch, Tory leader.
“Given the prime minister’s appalling lack of judgment and the participation of his Downing Street operation, there must now be a full and thorough independent investigation,” she added.
Stephen Flynn, the SNP leader at Westminster, also wrote to Sir Laurie Magnus, the prime minister’s ethics adviser, asking for an investigation.
Nick Macpherson, who was Treasury permanent secretary in 2009, said: “[Then chancellor] Alistair Darling and the official Treasury were always aware that investment banks had an inside track to Number 10. But the brazen nature of that inside track is rather breathtaking.”