A YEAR ago, Ed Balls was in the middle of a radio interview when his mobile phone rang.

It was the morning of Gordon Brown's first full day in Number 10, and with one of the Prime Minister's most loyal lieutenant's waiting along with many of his colleagues to discover what job they would get, it was the Downing Street switchboard.

Mr Balls politely refused the presenter's invitation to answer it live on air. Others not so close to the Premier might not have risked missing their chance.

But 10 minutes later the phone rang again and the man who advised Mr Brown as Chancellor was invited to take charge of the newly-created Department for Children, Schools and Families, a department he had helped to design without considering he might end up running it.

It's been a long 12 months since that day, even if the Normanton MP says it "almost feels like yesterday". He has helped the department find its feet, unveil a major Children's Plan, and courted controversy with aggressive policies. But as a political animal he has also seen Labour's fortunes, and markedly those of the PM, peak and then plummet amid growing economic uncertainty.

Despite today's grim outlook– a Guardian poll this week gave the Conservatives a record 20-point lead – Mr Balls insists that it's still all to play for and says that the prospect of choice in an election will focus voters' minds.

But wasn't he one of those pushing for an election last autumn when things were looking so bright – much different from today's troubles – only for Mr Brown to back out?

"That's past now," he says diplomatically. "That was a decision which was taken and you deal with the situation as you find it. I don't think it's ever been any secret about what I said at the time, but that's past."

Although he accepts things have been tougher for Mr Brown and the Government since the non-election, he says that calling it a tipping point would be "too strong a word", leaping to the defence of his beleaguered boss.

Indeed, he argues that what we are witnessing is a return to normal politics after years of weak opposition, with the Government punished in opinion polls not because of the Prime Minister but because they are feeling the economic pinch.

Steering the economy to safety is the priority for the next year, he says, and argues that many people are still not ready to vote Conservative despite recent crushing election results.

"We've been through a hard time on the economy, but on education and schools policy, the health service, on welfare to work, on Europe, there are now quite big differences between the parties.

"The debate when it comes to the election will be about not just leadership and trust but also about which direction should we be taking the country?"

Mr Balls' own department aims to unite schools with all services affecting children, working with other departments like the Home Office and Department for Health, to offer cross-Whitehall solutions such as drawing up an action plan to deal with youth alcohol problems and trying to improve diets.

The Children's Plan is not about short-termism or gimmicks, he says, but will take time, and talk of territorial tensions between rival Ministers is brushed off.

At times he has incurred the wrath of teachers – his assault on schools, largely faith ones, breaching admissions codes, received much criticism, and his recent National Challenge targets to improve or close secondary schools with low results was condemned by unions as "shocking and random".

"I don't have regrets at all," says Mr Balls, acknowledging that the National Challenge is controversial.

"We've always tried to do the right things in the best interests of parents and young people and schools."

But as well as the pressures of running his own department, Mr Balls has the added strains of his wife, Yvette Cooper, sitting in the Cabinet as well, as Chief Secretary to the Treasury.

He admits that juggling the dual roles and looking after their children is "probably more intense and harder work than I expected", but acknowledges many other parents face similar challenges.

Inspired by the passion of teachers and the optimism of parents, he insists that there couldn't be a better job to have in government, which may be comforting to the under-pressure current Chancellor, Alistair Darling – Mr Balls has long been touted as a possible future occupant of Number 11. Surely he'd fancy that move?

"I think Alistair Darling's doing a really good job," he says. "I want our National Challenge to work. There's a big job here."