Darling takes the reins while Treasury prepares recovery plan

From today it's Alistair Darling's turn to run the country for a week (if you ignore that interfering fellow Scot who will no doubt be ringing in every now and then from Southwold).

It's been an odd year for Darling, who had previously enjoyed the reputation of accepting difficult briefs and then taking them out of the political spotlight.

The beginning of the credit crunch can be traced back precisely 12 months when the first tremors of the US mortgage crisis hit Wall Street. In retrospect it can be seen as the moment Labour's reputation for economic competence began to crumble.

There'll be a sombre atmosphere in the Treasury this week as his officials intensify preparations for the Government's economic recovery plan.

I am told the majority are hostile to any form of windfall tax, believing the levy could be futile, as the energy fat cats would pass the cost on to their customers, and ultimately counter-productive as they could switch their operations overseas.

Yet Number 10 (said by a senior official to be "close to mental breakdown" since David Miliband staked his claim to residency of the building) are desperate for vote-winning ideas and are keen on the scheme.

In other words, it's a clash of political pragmatism and economic realism.

The idea that Darling could anyway be swapped with Miliband and dispatched to the Foreign Office is fast gaining ground.

At least it would give him the chance of overseas travel. This year he will venture no further than his Edinburgh constituency and the family croft in the north-west of Scotland. He has explained to friends that it wouldn't look good to holiday abroad this year.

THE MOLE: DARLING IN CHARGE

FIRST POSTED AUGUST 4, 2008