Darling on white-knuckle ride

LONDON (Reuters) - After five rollercoaster months in the job, Chancellor Alistair Darling could well be wondering what's next.

On Tuesday, he was forced to admit that a government blunder had put half the country at risk of identity theft after personal details of 25 million people were lost in the post.

It was the second scandal to have hit in quick succession.

In September, the country suffered its first bank run in 140 years after Northern Rock fell foul of the global credit crunch and had to borrow emergency cash from the Bank of England. The mortgage lender's shares keep sliding as it looks for a buyer.

Routinely described by civil servants as a "safe pair of hands", Darling is under fire from the Conservative party that cannot believe its own good fortune as Prime Minister Gordon Brown's popularity plummets.

Bookmakers have slashed the odds on Darling quitting. But his job appears safe for now.

Asked whether any minister had offered to resign, Brown told parliament: "No, and nor should they." His fellow Scot, the prime minister said, had done an "excellent job both as a Treasury minister and as Chancellor."

TAKING CHARGE

Political sources say the last thing the Brown government wants for a chancellor to resign. That was a key consideration in giving Darling, a cabinet minister for 10 years with a reputation as a fixer, the Treasury brief in the first place.

In Cabinet since Labour first came to power under former Prime Minister Tony Blair in 1997, Darling has already had some of the more difficult jobs in government like running the pensions and transport ministries.

A lawyer by training, Darling must be hoping the public are now willing to find him not guilty for the actions of a junior civil servant in clear breach of all normal rules.

His jet-black eyebrows and mop of silver hair have been a constant sight on television over the last 24 hours as he appealed for calm and assured people their money was safe, just as he did during the run on Northern Rock.

Edinburgh-born Darling, 54 next week, is well-liked in the Westminster village for his dry wit and ready smile. His party last week for political journalists was a convivial affair.

But with Northern Rock and the missing data debacles riding high in the public consciousness, he faces a rocky road ahead. The Bank says the economy will slow sharply next year as a result of this year's financial market turmoil.

The housing market is also coming off the boil and many experts now warn of the risks of a crash similar to the early 1990s. And tight public finances mean Darling does not have the resources to offer the economy a fiscal boost even though the Conservatives have made tax a key issue.

His plans to reduce inheritance tax in October were derided as a gimmick and business has spoken out against his simplification of capital gains tax.

Darling will need his luck to turn soon or the Brown government could find itself out of office at the next election.