Brown says Darling made mistake

LONDON (Reuters) - Prime Minister Gordon Brown said on Monday Chancellor Alistair Darling had made a mistake in claiming expenses for a service charge on a property he owned.

The Daily Telegraph reported earlier that Darling had claimed for a service charge on a London flat he let out while also claiming living expenses for another home and provided free by the government.

Darling has denied this and said that he had paid a service charge in advance when he was living in the property in July but then moved out to his official Downing Street residence in September.

As a result, he would pay back the service charge between September and December.

Brown had earlier said he there was no substance to the allegations but following Darling's decision to pay back the money told Sky News: "I have said that what has happened with Alistair was a mistake that was made."

"He says it was inadvertent as a mistake and I accept that. Equally at the same time he has apologised."

With the Labour Party facing a rout in Thursday's local and European elections, Brown looks sure to reshuffle his cabinet and one plan being mooted is that he replaces Darling with close ally Ed Balls, the schools minister.