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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.”

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.