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http://news.scotsman.com/politics/Darling39s-reputation-at-stake-after.4444065.jp

Darling's reputation at stake after his 'apocalyptic' economic warning

Published Date: 01 September 2008
By ROSS LYDALL
POLITICAL EDITOR
ALISTAIR Darling is fighting to salvage his battered political reputation after being accused of undermining the government's economic recovery plan before it had been launched.
The Tories, SNP and Liberal Democrats rounded on the Chancellor after he gave an incendiary interview warning that voters were "p***ed off" with Labour, and the country was facing "arguably the worst" downturn in 60 years.

This contradicted GordonADVERTISEMENT

Brown's frequent claim that the UK economy is resilient enough to withstand the fallout from the US credit crunch, increased global demand for oil and rising food and domestic energy bills at home. It also threatened to widen the divide between Chancellor and Prime Minister, in the wake of the 10p income tax fiasco, and saw Mr Darling seek to safeguard his position in the event of a Cabinet reshuffle.

Yesterday it was reported the long-term friends and allies were in dispute over a £40bn mortgage rescue plan to ease the housing crisis for those whose homes are at risk of being repossessed.

Sir Menzies Campbell, former Liberal Democrat leader, said the "apocalyptic tones" of the Chancellor had done little to help hopes of an economic recovery or Mr Brown's own fortunes, while SNP First Minister Alex Salmond suggested Mr Darling should consider resigning.

Jack Straw, Labour's Justice Secretary, took to the TV studios to claim Mr Brown and Mr Darling were the right people to have at the helm at a time when the nation faced economic "turbulence". He said the Chancellor – MP for Edinburgh South West – had been merely "levelling with people", and said employment levels were far better than in previous downturns.

The Justice Secretary said the UK economy was going through "turbulence" and insisted the public faced a choice between a tested "pilot and co-pilot" in Mr Brown and Mr Darling, or David Cameron and George Osborne, the Tory team, who had "no experience of flying".

Mr Salmond said Mr Darling's dire warning in a magazine interview – followed by a more upbeat prediction in the Stornoway Gazette – showed he was "mired in confusion".

Mr Salmond said: "We need coherent action, not conflicting words from the Chancellor. It is time he either steps up to the plate or goes now."

George Osborne, the Tory shadow Chancellor, said: "Alistair Darling's outburst of truth about the economy has torpedoed the Prime Minister's much-trailed recovery plan before it is even launched.

"We now know this won't be an economic recovery plan, as the Chancellor has said things will get worse."