Ed Balls steps in to quash fears of a Cabinet feud - but denies it is a bid for the Chancellor's job

Ed Balls tried to quash growing signs of a Cabinet feud tonight by telling Gordon Brown he would be 'wrong' to sack the Chancellor.

The Schools Secretary denied he was angling for Alistair Darling's job in an autumn reshuffle being considered by the Prime Minister.

And he rejected as 'crazy' claims that David Miliband has launched a campaign to unseat Mr Brown as Labour leader.

Mr Brown's September relaunch has already been knocked off balance by the Chancellor's weekend claim that Britain faces its toughest economic crisis in 60 years.

Downing Street was alarmed by what looked like the beginnings of a Cabinet backlash against Mr Darling from those who want him removed.

Some Labour MPs accuse Mr Balls, who is frequently talked of as a future Chancellor, of briefing against Mr Darling.

But the Schools Secretary claimed he does not want to move to the Treasury, although he noticeably stopped short of ruling himself out completely.

'I don't want his job. What I want to do is get on with the job I'm doing,' he said.

Critically, in an interview with ITV News he threw his backing behind Mr Darling by suggesting that his removal would be damaging to the Prime Minister.

As one of Mr Brown's closest advisers, he appeared to confirm that Mr Darling's position is secure, saying: 'I have no reason to believe there's any prospect in any change of Chancellor.

'I think it'd be the wrong thing to do.'

Earlier, speaking at the launch of the new curriculum for under-fives, he said: 'I think we've got a really good Chancellor in Alistair Darling.

'I can't think of any more important job I could have than making sure that the children in our country are equipped to learn going into primary school and can get the qualifications they need to be happy, to have fun and to do well in life.'

He also endorsed Mr Darling's stark assessment of Britain's economic prospects by insisting that the global financial situation was the worst since the 1930s.

'It's clearly the case that in financial markets the credit crunch is as tough as it's been probably since the 1930's.

'Put that alongside the fact that you've had this big rise in oil prices - a spike as serious as in the 1970's.

'His analysis that things are really challenging is completely right,' he said.

Asked later by Channel 4 News about whether the Foreign Secretary was after the Prime Minister's job, Mr Balls said: 'I've known him (Miliband) for very many years and I know that he is a sensible, rational, sane politician, and a good guy, and I don't think that he would ever do anything so crazy, destructive and divisive, and that is why I am totally confident that's not what he was doing'.

He added: 'Well I do because I think for him to be pitching for leadership at this difficult economic time would be a  divisive thing to do, would be the wrong thing to do.

'I know David Miliband very well. That is not what he would do.'