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International News>UK Treasury chief Darling faces blame for series of financial blunders |
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Alistair Darling always had a tough act to follow, but the man who stepped into Prime Minister Gordon Brown's shoes as Britain's Treasury chief has had an even worse run than most would have anticipated.
Dubbed a "dead man walking" by the opposition Conservative Party last week, Darling has presided over Britain's first bank run in 150 years, the biggest-ever loss of personal data and tax reforms that could trigger the exodus of some of the country's most wealthy residents.
The government's controversial decision to nationalise Northern Rock PLC, Britain's most public casualty of the global credit squeeze, has provided the last straw for Darling's critics.
The Conservatives say the debacle has left the reputation of both the government and of London as a financial centre in tatters and are calling on Darling to quit his post as chancellor of the exchequer once legislation to take the mortgage lender into state ownership becomes law later this week.
"As soon as the legislation goes through Parliament the prime minister must restructure his government," said Conservative leader David Cameron.
"He needs to have a chancellor with credibility, and he needs to do it quickly."
Sensing a scalp for Britain's deepening economic woes, the media has also waded in.
"Nothing can now save the reputation of the poor, broken chancellor," the Daily Mail said.
"From the iron chancellor to the bendy one, Alistair Darling has been brought low by a series of incredible contortions," the Guardian said.
Legendary
Other commentators, however, have pointed out that if Darling is culpable, so too is Brown whose reputation for micro-management, particularly of his former job, is legendary.
While Brown could bow to public and political calls to cut Darling loose, taking that step could also leave the prime minister himself more exposed to much of the criticism being aimed at his treasury chief.
Darling took over at the Treasury last June when Brown - whose success in that office had reinforced the Labour Party's reputation for economic competence, underpinning the Labour Party's success the past three general elections - replaced Tony Blair in the country's top job.
Perceived by economists as a 'safe pair of hands,' the 54-year-old former Edinburgh lawyer was unknown to much of the general public.
In just a few short months, his shock of white hair and startlingly contrasting bushy black eyebrows have become familiar - for all the wrong reasons.
Darling got off to a poor start with his pre-budget report last year when he announced plans to make unpopular changes to the capital gains tax system and a crackdown on wealthy foreigners living in Britain who avoid tax on their overseas earnings.
The latter proposal to slug so-called non-domiciles with more tax even led Digby Jones, Brown's new trade minister - and former head of the Confederation of British Industry - to break government ranks and warn publicly that key businessmen would likely depart the country.
Some political commentators suggested that Darling was rushed into the pre-budget report amid speculation at the time that Brown would hold a snap election.
Embarrassing
Regardless, Darling is now in the embarrassing position of being expected to backtrack on both proposals in next month's budget after the heavy criticism from London's financial district.
It was also left to Darling to reveal earlier this year that computer disks bearing addresses, bank account numbers and other details of about 25 million people - almost half the British population - were lost in the mail.
Earlier this week, Darling joined Brown at his monthly press conference, usually a solo affair, to face questions about Northern Rock a day after he revealed the government's decision to nationalise the bank.
During that press conference, Brown at one stage made a point of saying the "chancellor concluded" that temporary public ownership of Northern Rock was the best option.
An accompanying lack of open praise could be telling, given Brown praised Darling for doing "an excellent job" when suggestions that the Treasury chief should resign were first suggested in some quarters late last year.
But the loss of Darling, who has declined to respond to the calls for his departure, would also likely move the media and public spotlight closer to Brown's door.
- A P