Darling caught up in expenses scandal

By Adrian Croft

LONDON (Reuters) - Chancellor Alistair Darling apologised on Monday and agreed to repay 350 pounds after he became the latest minister to be dragged into a scandal over expenses claimed by members of parliament.

Prime Minister Gordon Brown said he would not step down despite the furore and polls showing his Labour party faces a humiliating defeat in European and local elections this week.

Resisting calls from Conservatives for a national election, Brown said he had a duty to clean up the system and to get Britain through a deep recession before taking the country into an election.

"I'm staying on to do the job I need to do," Brown told BBC radio when he asked if he could be persuaded to step down for the sake of his party.

Brown's government has been battered by the expenses row and the worst recession since World War Two.

Darling apologised on Monday after overclaiming expenses on a property he owned, but said he did not plan to resign.

"I'm sorry about that, I unreservedly apologise. It shouldn't have happened," he said. The claim covered a period in 2007 when Darling was appointed finance minister and was moving into an official residence in Downing Street.

Asked about speculation that he might be replaced in a government reshuffle after Thursday's election, Darling told television reporters: "It is up to the prime minister. He has got to decide the team he wants."