THE first ominous sign that David Cameron’s campaign was about to be severely tested by a sex-and-drugs smear came in a telephone call from a former prostitute.

It was made about ten days ago by Jennifer Shackleton, 42 — a one-time professional dominatrix who advertised her services as “Mistress Pain” — to the office of George Osborne, 34, the Shadow Chancellor.

It was an unwelcome jolt from Mr Osborne’s past. Ms Shackleton had kept 12-year-old photographs of her embracing Mr Osborne, then aged 22, in a flat in Chelsea, with what could be a line of white powder on the table in front of her.

At the time she was involved in a relationship with a close friend of Mr Osborne. The Old Etonian friend had recently graduated from Bristol University where Samantha, the future wife of David Cameron, was studying art.

Ms Shackleton went to Max Clifford, the public relations expert who specialises in kiss-and-tell stories, after she saw in the press that Mr Osborne had been promoted to Shadow Chancellor. Ms Shackleton saw the chance to make some money out of her old friendship with the man tipped as a future Tory leader.

Mr Clifford agreed and tipped off the News of the World, whose reporters interviewed Ms Shackleton and took copies of the photographs. But the newspaper was unable to substantiate the former vice-girl’s claim that she had seen Mr Osborne, a father of two who was single at the time, and the unnamed friend take cocaine together.

Then Mr Clifford and the News of the World had a disagreement over a hostile story about another one of his clients. He took the material to the Sunday Mirror.

The relatively obscure Mr Osborne suddenly became big news when Mr Cameron refused to say whether he had taken hard drugs. Mr Osborne was not only manager of the Cameron campaign, he was also a key figure in the so-called Notting Hill set of advisers who surround the youthful pretender to the Tory throne.

When the Sunday Mirror moved in, the News of the World was quickly alerted and revived its five-month-old story.

In a classic red-top Sunday newspaper sting, Ms Shackleton, who Mr Osborne knew as Nathalie, was told by her media-keepers to telephone him. The call would have been taped in the hope that he would make incriminating remarks.

It was the same technique used to dupe Lord Archer of Weston-super-Mare into making unguarded remarks about his libel trial in the 1980s. He was subsequently rearrested and jailed for perjury.

The thirty-something Notting Hill set has been dubbed “Toffs on Parade” by Labour MPs because they are predominantly upper-class and public school-educated. They have had years of experience dealing with the media. Mr Osborne never fell for the trap.

In the first telephone call five months ago he listened but said little. When the ghost of his past returned about ten days ago he never returned her calls.

The re-emergence of Ms Shackleton may explain why Mr Osborne was absent from the airwaves last week when Mr Cameron was under intense pressure to say whether he had taken drugs.

Ms Shackleton was quoted yesterday as saying that Mr Osborne and his friends wanted drugs. “George would do lines (of cocaine) but did not go crazy like the rest of them.”

In a statement Mr Osborne confirmed that he had known Ms Shackleton, who had a child with the unnamed friend. He became aware that drugs were involved.

“I saw his (the friend’s) life fall apart,” he said in the statement. “With his other friends I tried to persuade him to seek treatment. Eventually he did and after a long time in rehabilitation he has now recovered and put his life back together.”

A Conservative Central Office spokesman denied that Mr Osborne had a physical relationship with Ms Shackleton. “Nor has he ever taken drugs with her.”

Mr Osborne, like Mr Cameron, pointedly declined to say whether he has taken drugs.

The worst may not be over for the Notting Hill set. Mr Clifford said last night: “There is more to come on this story.”

THE TIMES JURY

DAVID CAMERON acquitted himself well over drugs questions, the Times Jury said. Many of the 12 Conservative members questioned believe the debacle may have even done him good.

John Lamont, 29, solicitor, Edinburgh

“It hasn’t affected my opinion of him, but of the other contenders. I’m only interested if he took drugs as an MP”

Sameer Mirza, 40, insurance broker, Harrow

“I think he needs to lay it to rest, and then leave it behind. I have lost a daughter to drugs, I think it is sadly part of society”

Graham Hall, 51, business consultant, Sunderland

“There is no need for him to give into the Davis camp, I don’t think there is any need to reveal things from the past unless they are really quite serious”

Fiona Latter, 29, Wolverhampton

“I can forgive anyone a moment’s stupidity, but not someone who can’t own up to their responsibilities. I think this shows he is still too inexeperienced”

Ken Turner, 62, financial services, Halesowen

“It’s made me like him more, that he is standing up to such pressure, it shows leadership. It’s a shame the others are using it, we are all part of the same party”

Rebecca Harding, 32, Measham, Leicestershire

“I think it’s Davis who has been sneaky about it, while Cameron has handled it well”

Christina Harcus, 22, Helensburgh

“With hindsight he probably should have said, but it hasn’t changed my opinion of him one way or the other”

Philip Milton, 43, Georgeham, North Devon

“I don’t think the party can welcome him with open arms if he is not prepared to be open with them. The membership will still want to know”

Laura Midgley, 30, campaigner, London

“I do think he is right, and I think it shows strength of character to stick to your principles”

Maggie Throup, 48, works in marketing, Solihull

HELEN RUMBELOW

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