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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Richmond is a wake-up call for Labour's Brexit strategy

No one made Labour stand in Richmond Park. 

Oh, Labour Party. There was a way through.

No one made you stand in Richmond Park. You could have "struck a blow against the government", you could have shared the Lib Dem success. Instead, you lost both your dignity and your deposit. And to cap it all (Christian Wolmar, take a bow) you self-nominated for a Nobel Prize for Mansplaining.

It’s like the party strategist is locked in the bowels of HQ, endlessly looping in reverse Olivia Newton John’s "Making a Good Thing Better".

And no one can think that today marks the end of the party’s problems on Brexit.

But the thing is: there’s no need to Labour on. You can fix it.

Set the government some tests. Table some amendments: “The government shall negotiate having regard to…”

  • What would be good for our economy (boost investment, trade and jobs).
  • What would enhance fairness (help individuals and communities who have missed out over the last decades).
  • What would deliver sovereignty (magnify our democratic control over our destiny).
  • What would improve finances (what Brexit makes us better off, individually and collectively). 

And say that, if the government does not meet those tests, the Labour party will not support the Article 50 deal. You’ll take some pain today – but no matter, the general election is not for years. And if the tests are well crafted they will be easy to defend.

Then wait for the negotiations to conclude. If in 2019, Boris Johnson returns bearing cake for all, if the tests are achieved, Labour will, and rightly, support the government’s Brexit deal. There will be no second referendum. And MPs in Leave voting constituencies will bear no Brexit penalty at the polls.

But if he returns with thin gruel? If the economy has tanked, if inflation is rising and living standards have slumped, and the deficit has ballooned – what then? The only winners will be door manufacturers. Across the country they will be hard at work replacing those kicked down at constituency offices by voters demanding a fix. Labour will be joined in rejecting the deal from all across the floor: Labour will have shown the way.

Because the party reads the electorate today as wanting Brexit, it concludes it must deliver it. But, even for those who think a politician’s job is to channel the electorate, this thinking discloses an error in logic. The task is not to read the political dynamic of today. It is to position itself for the dynamic when it matters - at the next general election

And by setting some economic tests for a good Brexit, Labour can buy an option on that for free.

An earlier version of this argument appeared on Jolyon Maugham's blog Waiting For Tax.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.