Lucy Powell says she understands public’s frustration with Labour in office

The state of the economy is “disappointing” and people’s frustrations with Labour’s performance in office are understandable, a Cabinet minister has acknowledged.

Commons Leader Lucy Powell insisted the Government was turning the situation around but accepted she wanted to see economic improvements faster.

She defended the “difficult decisions” taken by the Government, saying “we didn’t think it would be popular”.

In a series of interviews as Labour approached six months in office, Ms Powell was challenged about the flatlining economy, the impact of the Budget’s tax hikes and the decision not to compensate women affected by increases in the state pension age, something regarded as a betrayal by some on the Labour benches.

She told BBC Breakfast: “We knew (governing) was going to be difficult. I think the voters and the public knew it was going to be difficult too, that’s why they voted for change because we knew the country was in such a bad situation.

“I can understand people’s frustration. It’s a frustration that I share because we want to make things better, faster for people.”

On Sky News she acknowledged the economic performance was “disappointing”, adding: “Of course, we want to see these things happening faster. We want to see more growth in the economy, and we want to see that faster, really so that it can be felt by ordinary people around the country.

“But this is a bit like turning round some huge oil tanker.”

She said “we are starting to turn that oil tanker around”.

The decision to hike employers’ national insurance contributions has contributed to a collapse in business confidence and experts believe it will cost jobs and lead to lower wage increases.

Ms Powell said “it was a difficult decision, and it’s had consequences for businesses, I understand that, with the national insurance rise, but we took the decision to put a record level of investment into our National Health Service to bring down those waiting lists”.

Asked why Labour’s poll ratings had plummeted, Ms Powell told GB News: “We always knew it was going to be difficult, and it’s proven to be the case.”

She added: “We’ve begun to start moving it in the right direction, but there are many fundamental challenges facing the country that have meant we’ve had to take some difficult decisions so that we could get the money into the front line of the NHS, and skills and education, and sort out our transport system, and really start putting working people at the front of the queue again.

“And that’s been a really difficult job that we’ve had to do. We didn’t think it would be popular, but hopefully people will judge us in four years’ time on whether they feel better off and whether their public services have improved.”

With the rise of Reform UK and speculation about a multimillion-pound donation from US billionaire Elon Musk, Ms Powell confirmed there were no immediate plans to tighten rules on foreign donations.

Labour’s election manifesto committed to strengthening the rules around donations to political parties.

But Ms Powell said: “We’ve no immediate plans to do that, but we do have a manifesto commitment to look more broadly at our elections regime in this country, from things like votes at 16, which we’re committed to.

“But also to make sure that our electoral system has got that integrity and is robust from many of the new issues that face undermining our democracy and our elections.”

By David Hughes, PA Political Editor