Exclusive: deputy leadership favourite says budget can revive party’s appeal, while Bridget Phillipson pitches to channel grassroots views to cabinet

Labour should not “write off” next May’s elections as a likely moment for big losses but use the budget as a way to seize back voters’ attention, Lucy Powell has said as the battle to be the party’s deputy leadership entered its final period.

With voting among party members under way, Bridget Phillipson, Powell’s rival for the post, said if she won she would set up a formal system to reflect the views of members and unions to the cabinet on a regular basis.

Powell was sacked from the cabinet in last month’s reshuffle after the departure of Angela Rayner and has become the favourite to win on an outsider platform, promising to present tough truths to Keir Starmer and his team when necessary.

Speaking after a series of events with members over the weekend, Powell said there was concern about the possible impact on the party of the elections for the Scottish and Welsh parliaments and councils across England next May, with Labour predicted to see heavy losses, many to Reform UK.