Never in the past two turbulent years has the chancellor looked more distressed or looked more likely to lose his job at the Treasury. More so even than after having to tear up his economic forecasts or admit to record falls in growth and rises in borrowing.

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Alistair Darling's first response to the Telegraph's claims about him was to robustly deny the charges that he had simultaneously claimed for two homes or "flipped" his house claims to make a profit or inappropriately claimed the cost of an accountant to manage his tax affairs. The prime minister too declared that he was sure that his "friend" had done nothing wrong.

By the end of the day though, Mr Darling had paid money back and apologised for another - and he claims inadvertent - mistake altogether, not repaying his claim for the service charge on his second home after he'd rented it out.

Though he still has the prime minister's public backing, there is a sense in Whitehall that Mr Darling's time as chancellor may be coming to an end. Long before the expenses saga, some close to Gordon Brown had argued that Labour needed a more political and more aggressive man at the Treasury.

It will be a source of huge frustration and personal sadness to Alistair Darling if, after he leaves the Treasury, people assume that it is because of some abuse of the expenses system. Perhaps that is why he was visibly upset through much of my interview with him.

