Has Danny Alexander really been boycotting Starbucks?

The Chief Secretary to the Treasury's mixed messages on the tax avoiding chain.

Danny Alexander attempted to burnish his radical credentials yesterday when he revealed that he had been boycotting Starbucks. After the chain promised to review its UK tax arrangements, he said: "I might be able to buy a coffee from Starbucks again soon".

But asked by John Humphrys on the Today programme this morning whether he had been boycotting Starbucks, Amazon and Google, all of whom have been accused by the Commons public accounts committee of "paying little or no corporation tax", Alexander offered a notably different response. "I’m a tea drinker, so I don't tend to go to Starbucks or other such places," he said, adding: "I do use Amazon from time to time, or I have." So was the "tea drinker" ever going to Starbucks to begin with?

But regardless of his spending habits, as Chief Secretary to the Treasury, Alexander can and should be doing more to prevent corporate tax avoidance. He boasted today that the £154m of funding announced by George Osborne would give "HMRC the resources they say they need to do this." But what he didn't say is that the extra funding will barely begin to compensate for the £2bn of cuts Osborne has made to HMRC and the 10,000 staff due to be laid off. A report earlier this year by the public accounts committee found that job cuts among revenue officials meant the government collected £1.1bn less in tax than it would otherwise have done. "We are not convinced that the decision to reduce staff numbers working in this area in the past represented value for money for the taxpayer," it said.

Asked by Humphrys whether she had been boycotting the unholy trinity, Labour MP and public accounts committee chair Margaret Hodge said that she was avoiding Starbucks and no longer used Amazon. "I’m a Kindle fanatic, so that’s a difficult one," she said. "Google I find more difficult." It says much about Google and Amazon's dominance of their respective sectors that even the indefatigable Hodge struggles to avoid them.

Police form a line outside a Starbucks coffee shop as demonstrators participate in a protest against the government's spending cuts. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

How Jim Murphy's mistake cost Labour - and helped make Ruth Davidson

Scottish Labour's former leader's great mistake was to run away from Labour's Scottish referendum, not on it.

The strange revival of Conservative Scotland? Another poll from north of the border, this time from the Times and YouGov, shows the Tories experiencing a revival in Scotland, up to 28 per cent of the vote, enough to net seven extra seats from the SNP.

Adding to the Nationalists’ misery, according to the same poll, they would lose East Dunbartonshire to the Liberal Democrats, reducing their strength in the Commons to a still-formidable 47 seats.

It could be worse than the polls suggest, however. In the elections to the Scottish Parliament last year, parties which backed a No vote in the referendum did better in the first-past-the-post seats than the polls would have suggested – thanks to tactical voting by No voters, who backed whichever party had the best chance of beating the SNP.

The strategic insight of Ruth Davidson, the Conservative leader in Scotland, was to to recast her party as the loudest defender of the Union between Scotland and the rest of the United Kingdom. She has absorbed large chunks of that vote from the Liberal Democrats and Labour, but, paradoxically, at the Holyrood elections at least, the “Unionist coalition” she assembled helped those parties even though it cost the vote share.

The big thing to watch is not just where the parties of the Union make gains, but where they successfully form strong second-places against whoever the strongest pro-Union party is.

Davidson’s popularity and eye for a good photo opportunity – which came first is an interesting question – mean that the natural benefactor in most places will likely be the Tories.

But it could have been very different. The first politician to hit successfully upon the “last defender of the Union” routine was Ian Murray, the last Labour MP in Scotland, who squeezed both the  Liberal Democrat and Conservative vote in his seat of Edinburgh South.

His then-leader in Scotland, Jim Murphy, had a different idea. He fought the election in 2015 to the SNP’s left, with the slogan of “Whether you’re Yes, or No, the Tories have got to go”.  There were a couple of problems with that approach, as one  former staffer put it: “Firstly, the SNP weren’t going to put the Tories in, and everyone knew it. Secondly, no-one but us wanted to move on [from the referendum]”.

Then again under different leadership, this time under Kezia Dugdale, Scottish Labour once again fought a campaign explicitly to the left of the SNP, promising to increase taxation to blunt cuts devolved from Westminster, and an agnostic position on the referendum. Dugdale said she’d be open to voting to leave the United Kingdom if Britain left the European Union. Senior Scottish Labour figures flirted with the idea that the party might be neutral in a forthcoming election. Once again, the party tried to move on – but no-one else wanted to move on.

How different things might be if instead of running away from their referendum campaign, Jim Murphy had run towards it in 2015. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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