Grant Shapps's woes grow as he faces investigation

Tory chairman accused of misleading the public with false name will be investigated by the Advertising Standards Authority.

In his capacity as Conservative chairman, Grant Shapps will welcome the media to his party's conference in Birmingham this weekend, so it's unfortunate that he's increasingly a figure of ridicule. As Ed Miliband caustically observed in his conference speech:

We’ve got a Party Chairman who writes books about how to beat the recession, under a false name. Really, I’m not making this up; I’m really not making this up. I mean I have to say if I was Chairman of the Conservative Party, I’d have a false name too.

That false name was "Michael Green" (and/or "Sebastian Fox") and, following a complaint by blogger The Plashing Vole, Shapps is now under investigation by the Advertising Standards Authority (ASA). The ASA will respond to claims that Shapps's website, HowToCorp (which now exists only as a help page for existing users), misled the public by implying that  "Sebastian Fox" or "Michael Green" were "real people", and that the glowing testimonies they attracted were "genuine".

Green was presented as a successful businessman with a personal fortune of $28 million (£17 million) who could make customers "$20,000 in 20 days" through the software package, TrafficPaymaster (while also providing a Partridge-esque guide on how to "bounce back" from recession), or offer them their money back. An ASA spokesman told the Vole:

We intend to deal with your complaint under our formal investigations procedure, which means that we will ask HowToCorp to comment on the complaint that the ad misleadingly implies Sebastian Fox or Michael Green are real people, and that the testimonies are not genuine, and to send evidence to support the claims. We will then draft a recommendation and refer your complaint to the ASA council for adjudication.

A spokesman for Shapps, who stepped down from the company in 2008, said: "Mr Shapps hasn't been involved with this company for four and a half years. These websites are no longer online and any blogger can make a spurious complaint about any website, which then has to be investigated. This is in the hands of the ASA."

In the absence of Andrew Mitchell, who has elected to stay away from the Tory gathering, it is Shapps who will be the media's prime target. Of the former, David Davis observed that it would be "very, very difficult" for him to do his job. Could the same now be said of Shapps?

Conservative chairman Grant Shapps adopted the alias "Michael Green" for his internet business HowToCorp. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Scottish Labour's defeat to the Tories confirms a political transformation

The defining divide is no longer between left and right but between unionist and nationalist.

It was Scotland where Labour's recovery was supposed to begin. Jeremy Corbyn's allies predicted that his brand of left-wing, anti-austerity politics would dent the SNP's hegemony. After becoming leader, Corbyn pledged that winning north of the border would be one of his greatest priorities. 

But in the first major elections of his leadership, it has proved to be Labour's greatest failure. A result that was long thought unthinkable has come to pass: the Conservatives have finished second (winning 31 seats). For the first time since the 1910 election, Labour has finished third (winning 24). Scottish Labour leader Kezia Dugdale stood on a left-wing platform, outflanking the SNP on tax (pledging to raise the top rate to 50p and increase the basic rate by 1p), promising to spend more on public services and opposing the renewal of Trident. But rather than advancing, the party merely retreated.

Its fate confirms how Scottish politics has been realigned. The defining divide is no longer between left and right but between unionist and nationalist. With the SNP as the only major pro-independence party, the Tories, led by the pugnacious Ruth Davidson, framed themselves as the pro-UK alternative - and prospered. In contrast, Dugdale refused to rule out supporting a second referendum and suggested that MPs and MSPs would be free to campaign for secession. The result was that Scottish Labour was left looking dangerously irrelevant. "Identity politics. Labour doesn't get it," a shadow minister told me. Its socialist pitch counted for little in a country that remains ideologically closer to England than thought. The SNP has lost its majority (denying it a mandate for a second referendum) - an outcome that the electoral system was always designed to make impossible. But its rule remains unthreatened. 

Corbyn's critics will seek to pin the baleful result on him. "We turned left and followed Jeremy's politics in Scotland, which far from solving our problems, pushed us into third," a senior opponent told me. But others will contend that a still more left-wing leader, such as Neil Findlay, is needed. Dugdale is personally supportive of Trident and was critical of Corbyn before his election. Should she be displaced, the party will be forced to elect its sixth leader in less than five years. But no one is so short-sighted as to believe that one person can revive the party's fortunes. Some Corbyn critics believe that a UK-wide recovery is a precondition of recovery north of the border. At this juncture, they say, SNP defectors would look anew at the party as they contemplate the role that Scottish MPs could play in a Westminster government. But under Corbyn, having become the first opposition to lose local election seats since 1985, it is yet further from power. 

In Scotland, the question now haunting Labour is not merely how it recovers - but whether it ever can. 

George Eaton is political editor of the New Statesman.