Jack Straw said Ken Livingstone had done a "fantastic job" as mayor
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Labour can still win the next general election despite being trounced in this week's local council polls, Justice Secretary Jack Straw has said.
The Conservatives made gains across England and Wales, including Boris Johnson's mayoral success in London.
Mr Straw told BBC News that voters had wanted to punish Labour for scrapping the 10p income tax rate.
He said the next general election would be very different from what was partly a "mid-term protest vote".
'Very upset'
Mr Straw said: "They wanted to punish him [Gordon Brown] - or punish us in respect of the 10p."
He added: "Being on the doorstep over the last four weeks across the country I understand what is making people angry with the government.
"There's no question that the 10p tax has affected some people, not as many as the newspapers suggest, but those who it has affected it has affected adversely.
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We all share the responsibility for the defeat that he [Ken Livingstone] suffered yesterday
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"Those people are understandably very upset about why it is that a government which has cared and continues to care very much about lower-paid people should be doing this. We're putting that right."
Mr Johnson ended Ken Livingstone's eight-year reign as London mayor by picking up 1,168,738 of first and second preference votes.
Mr Straw said: "I'd like to echo Ken Livingstone's congratulations to Boris Johnson. It was a really interesting fight in London.
"We're obviously naturally sorry that Ken did not win but from the point of view of the government we will do everything we can to back London and the decision that London has made.
"I disagree with Ken in one particular only, that we all share the responsibility for the defeat that he suffered yesterday."
'My fault'
Mr Straw said he thought Mr Livingstone had done a "fantastic job" as mayor.
In his speech after the result was declared at City Hall, Mr Livingstone said: "I'm sorry I couldn't get an extra few points that would take us to victory and the fault for that is solely my own."
Prime Minister Gordon Brown has admitted the local council election results across England and Wales - the party's worst for 40 years - were "bad and disappointing".
BBC research suggests Labour won 24% of votes cast, behind the Tories on 44% and Liberal Democrats on 25%.
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