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.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.