Page last updated at 22:11 GMT, Tuesday, 28 July 2009 23:11 UK

Mandelson: 'We are the underdogs in politics now'

Lord Mandelson has admitted that it will be very tough for Labour to win the next general election.

He said it was up to the whole government to fight back after Labour's recent local election results.

The business secretary admitted the government had been through a "colossal amount" over the last six months, in relation to the economy and the expenses revelations.

In an interview with BBC Newsnight, the business secretary acknowledged that, after 12 years in office, it is difficult for the party to retain its appeal.

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