Powell: I understand public frustration with Labour

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

- DAVID HUGHES ELLIE NG

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 that “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 ... 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 that “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”.