Philip Webster, Political Editor and Siobhan Kennedy
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Alistair Darling’s future was in question last night after Whitehall insiders said that he could be involved in an imminent Cabinet reshuffle.
The Chancellor’s assertions at the weekend that government changes were unlikely were described in categorical terms as “wrong”. Whitehall insiders told The Times that a controversial interview, in which he claimed that Britain could be heading into the worst economic conditions for 60 years, may have harmed his position.
Tensions between the Treasury and Downing Street were threatening to undermine Gordon Brown’s relaunch, which will begin tomorrow with a package of help for first-time buyers.
Ministers privately criticised Mr Darling for his interview, in which he said that the public were “p***** off” with Labour and even suggested that other ministers were keen on his job.
At Mr Brown’s insistence, the Chancellor launched a damage-limitation exercise, insisting that he had been talking about world conditions and that Britain was better placed than before to withstand problems.
However, a document leaked last night showed that ministers are braced for a surge in crime. In the draft report to the Prime Minister, Jacqui Smith gives warning that violent crime could rise by 19 per cent in the event of a full-blown recession, while theft and burglaries could rise by 7 per cent this year. The Home Secretary adds that a growing sense of disadvantage could push many susceptible people into extremist groups “that can lead to people becoming terrorists”.
Mr Brown and Mr Darling will announce an expansion of share-equity schemes for first-time buyers tomorrow. A scheme to help with energy bills could come later in the week. On Thursday the Prime Minister will set out his analysis of the challenges facing Britain and promise immediate measures to help ordinary families.
George Osborne, the Shadow Chancellor, said that Mr Darling’s “outburst of truth” had torpedoed the Prime Minister’s recovery plan. “We now know that this won’t be an economic recovery plan,” he said. “It will be Gordon Brown’s short-term political survival plan for which the country may have to pay an unfair price with billions of extra borrowing.”

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Mr Darling is right.
The problem is we know the Truth but
(i) we do not accept the Truth and
(ii) refuse to follow the Truth
Dr N C Addy, Hempstead, Kent
Geraldine is completely right, this is way beyond their abilities and jurisdiction to fix and the gvmt are massively out of their depth. Add misguided socialist dogma into the mix and it takes on a very scary feel.
Rob, Warfield, England
It was significant that in the interview Darling mixed with his lurid prophecy of economic doom his concerns about his own job. It confirms that this was no planned disclosure rather the action of a lonely isolated figure and suggests volumes about disfunction and lack of management at the top.
Bob T, London, UK
That's right, sack Darling because he was frighteningly close to telling the truth. Clearly Labour doesn't want to risk having someone with a glimmer of honesty and integrity in its ranks.
Let's clone Jacqui Smith, Ed Balls, Hazel Blears, etc. and really screw things up!
Chris K, Cheltenham, UK
Mr Brown has started to brief against its own Chancellor, such is the fear and anger at 10 Downing Street. After floating the 'Stamp Duty exemption' story to discredit Mr Darling, Brown's henchpersons are going in for the kill.
Frank Upton, Solihull,
A labour politician who is actually on the same wavelength as the general public, what a refreshing change.
Matt, Leeds, UK
job on the line? Who with any character would want to work for these traitors? He must have plenty stashed away by now. Why doesn't he resign and go and cut hedges (or his eyebrows) or clean windows or something?
Nu Labour really are a Butt of ridicule.
Owen Reed, Middlesbrough, Lost England
Form the first time a New Labour minister tells the truth and it is immediately seen by the party as a 'gaffe' and a 'blunder'. Yet still people vote for them. Why?
Roger Tilbury, Worthing,
I remember the 70's very well (Dave in Brighton), their were problems but we had Police on the streets,prisons, hospitals open, rubbish collected (generally) and a civilized community. I also remember being able to walk down the streets at night without the risk of being stabbed. Thanks Labour.
Roger, Surrey.,
Darling seems obsessed with the number 60 for some reason. Did he mean 'worst economic outlook' for 60 years? Or inflation will reach 60%? Or Labour will be 60 points behind in the poll. I think he needs to be fired in the next 60 minutes.
David B, London,
Why should taxpayers money be used to buy overpriced houses? What happens if the part owner still doesn;t pay their mortgage - does the bank reposess a partly government owned home? What if the owner doesn't maintain it, does the taxpayer step in yet again? Ill thought out as usual.
TC, London, UK
The doom-mongers are out in force today: the worst this, the worst that - without yet even technically entering a recession. What would these peope have made of the 25% inflation and the three-day week of the 1970s?
David J , Brighton,
Meltdown approaches on every level. No government can sort this out, this country needs transformation from the roots upwards. Critical mass on credit debt has been looming for 3 years, impotent PC govt and an ethos of poor value for huge profits now make our system untenable.
Geraldine Leale, Ascot, England
"The property market is grossly overvalued and should be allowed to correct ==without government intervention==.
First time buyers should be ==actively discouraged== from buying in such an overpriced market." (Allan)
A contradiction.
Dan Baynes, Barton Seagrave,
The whole political system is flawed, as long as the illuminati and super rich control banking,media etc. which in turn control most our world leaders nothing is going to change.We are all plugged into 'the matrix' we just can't see it, try looking but be warned it's scary.
s.pace, sheffield,
Hello Darling, your 9 months too late. A recession is born and very few would say they didn't know who the father was.
Now Alastair, the damage is done, the brat is screaming, and has no sense of responsibility at the other end.
What are you going to do? Same old remedy as for wind?
Giles Wynne, Lincoln,
whilst I do not condone the policies of Labour, and have little regard for Mr Darling, I have to submit that the honesty is refreshing.
Do we really need the dumbing down version of economic events, why does the government continue to treat the British public like children who cannot face reality?
alan, mwanza, tanzania
It's now very simple, excluding the choice from opposition; either Darling is lieing or Brown and the rest of the cabinet are.
I think Darling is telling the truth for once but may have been a little excessive in years. I would suggest its more like 20 than 60.
If you can have a good day.
Robert D Marshall, LONDON, UK
May be Darling was out by a year as the winter of 1947 was one of the coldest on record and the country was at a virtual standstill. One has to feel sorry for Darling as all this mess is GB's doing.
Dave, mold, UK
A housing recovery scheme will penalise First Time Buyers, as it will artificially hold up house prices, leaving them with larger debts to service for 25 years.
But the Brown Borrowing Bubble is what has sustained the economy for the last 10 years. He cannot afford to let it burst.
Eddie, Cheshunt, Herts
I have little sympathy for Labour either but the alternative is too much to contemplate.
Albert Eltringham, Farnborough,
Worst government in living memory.
Far too Scottish. Scottish people have their own parliament. Put English people in charge.
Fewer than 23 per cent of the electorate voted for them.
And no one voted for Brown.
D Short, London, UK
Darling is not being entirely honest.. the coming depression will be far worse than he's alluding to.
As for Britain splitting along enthic lines? Of course it will, show me a multi-cult country that does not when the goes gets hard. Just look to New Orleans and Argentina to see whats coming!
Dave, Stirling,
For once, Gordon Brown should show courage and go immediately to the electorate. Yes, Labour will lose but at least we will be rid of him and his entourage of simple minded socialsts.
A.M. Williams, Stafford,
A British politician telling the truth will lead to social upheaval. How will we know where we stand if mavericks break the rules like that.
eric campbell, harrogate, uk
Al the chickens are coming home at the same time: overtaxing, overspending, profligate waste, unreformed social services, excessive immigration, failure to tackle extremism, politically-correct mumbo-jumbo etc. We have the most useless bunch of underqualified inexperienced ministers, led by a fool.
Donna Walker, Effingham, England
The conclusion to eleven years of a spending boom on junk which is already in the landfill, labours own destination.
wayne, huntingdon, cambridgeshire
If Darling has stated the truth, this will just be another example of Brown's lack of financial acumen or ability to be honest with the British public.
steve tea, manchester, cheshire
Far too much taxpayers' money has already been thrown at this housing bubble, when it should be allowed to burst.
Paul, Coventry,
We are the most indebted major economy in a credit crunch. That is a uniquely bad situation, and a direct result of 10 years of Gordon Brown's lead.
Darling said the simple truth. Until the government face up to the size of this mess, there can be no recovery, however many messengers are shot
Pat, Coromandel, NZ
why can we not have one British politician who can stand up and tell the truth, a greedy europe, a lack of vision about how we can live are the roots of the impending and obvious doom
david, tashkent, uzbekistan
Brown's limited choice of candidates for cabinet positions becomes painfully obvious. Anyone with proven ability has either been forced to step down in disgrace or was too close to Blair to be considered loyal. What's left is not even 2nd XI quality.
Andrew Milner, Karuizawa, Japan
"Tough on crime, tough on the causes of crime".
Oh, this Government just gets better and better!
Paul, Singapore,
The joy given watching this ship of fools sailing, hopefully into political oblivion is tempered by the despair at what they have allowed this country to become.
john, weybridge, uk
Why should the taxpayer be forced into ploughing yet more money into shared equity schemes?
The property market is grossly overvalued and should be allowed to correct without government intervention.
First time buyers should be actively discouraged from buying in such an overpriced market.
Allan, Inverness,