Darling’s future in balance over recession talk

Alistair Darling’s future is said to hang in the balance after a controversial interview with the Guardian, saying Britain was facing ‘arguably the worst’ economic downturn in 60 years which would be ‘more profound and long-lasting’ than people had expected.

The Chancellor claimed at the weekend government changes were unlikely, an assertion that was categorically described as ‘wrong’ by Whitehall insiders who told The Times that the controversial interview might have harmed his position.

Tensions between the Treasury and Downing Street are said to threaten Gordon Brown’s relaunch, starting tomorrow with a package of help for first-time buyers.

The Chancellor has gone into damage-control, reportedly on Brown’s orders, insisting he had been talking about world conditions and that Britain was better placed than before to withstand problems.

Further reading:

Read The Times story

Read the Guardian story