How do we negotiate with the Taliban . . .

. . . if we can’t identify their leaders?

Had I watched such a story unfold on Spooks or 24, I would have shaken my head in disbelief and wondered how the scriptwriters thought they could get away with such a silly and unrealistic tale.

But it happened. In real life. In Afghanistan.

From the Daily Mail:

It sounds like the plot from a spy novel or James Bond film.

But Nato chiefs in Afghanistan have been severely embarrassed by a shopkeeper who fooled them into thinking he was a Taliban commander during secret peace negotiations.

Astonishingly, the ruse went on for two months, during which time the "contact" was paid a substantial sum of money.

He was also flown on a British military plane to three meetings designed to end the insurrection.

Despite suspicions about his identity, nobody disputed his claim to be Mullah Akhtar Mohammad Mansour, one of the Taliban's most senior leaders.

It was only months later – and after the handover of piles of cash to keep him coming back – that an old friend of Mr Mansour said they had the wrong man.

American officials have already given up hope that he was Mr Mansour, or even a member of the Taliban at all.

They now believe he was nothing more than a shopkeeper from the Pakistani city of Quetta.

The paper adds:

The fraudster even impressed negotiators with his moderate stance and, unlike other Taliban leaders, did not demand a withdrawal of foreign forces.

Travelling from Pakistan, he twice met Afghan President Hamid Karzai. It was during a third meeting, in the southern city of Kandahar, that a man who had known Mr Mansour years ago told Afghan officials that the Taliban leader at the table did not resemble him. Officials say it is not clear why he posed as Mr Mansour.

They believe it could have been for personal gain or he was possibly planted by the Pakistani intelligence service.

Others have said he could have been a Taliban agent, but all agreed that to pull off such a con meant he was "a very clever man".

A US official in Kabul added: "One would suspect that in our multibillion-dollar intel community there would be the means to differentiate between an authentic Quetta Shura emissary and a shopkeeper.

"On the other hand, it doesn't surprise me in the slightest. It may have been Mullah Omar – posing as a shopkeeper. I'm sure that our intelligence whizzes wouldn't have known."

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR