Peter Mandelson's secret talks with Jeffrey Epstein over banker bonus tax exposed
Newly revealed messages show Peter Mandelson discussed government policy with Jeffrey Epstein in late 2009. The disgraced financier, later convicted for sex trafficking, asked the then-business secretary to ease a controversial tax on banker bonuses. Mandelson confirmed he was working to amend the rule despite opposition from the Treasury.
The exchanges took place just months after Epstein had paid £10,000 to Reinaldo Avila da Silva, Mandelson's husband.
In December 2009, Gordon Brown's government introduced a 50% 'super tax' on banker bonuses exceeding £25,000. The measure, enforced through the Finance Act 2010, applied to the 2009/10 tax year and raised around £2 billion by March 2010. However, many banks responded by deferring payouts or moving bonuses overseas. The policy ended when Labour lost the May 2010 election.
Around the same time, Epstein contacted Mandelson to request a change to the bonus rules. The former Labour minister replied that he was 'trying hard' to adjust the policy, even though the Treasury resisted. Their conversations also touched on Brown's chances in the upcoming election.
Beyond policy discussions, the two exchanged frequent messages about their locations and arranged to meet in person. The contact continued despite Epstein's payment to Mandelson's husband earlier that year.
The messages reveal Mandelson's willingness to push for a policy shift at Epstein's request. The tax on bonuses remained in place until Labour left office, but the exchanges raise questions about the nature of their discussions. Epstein was convicted of sex trafficking in 2019 and died in prison that year.
