The prime minister and the chancellor told the Cabinet yesterday that Labour would regain the trust of voters by showing that its investment in public services is working.

But the prime minister has been forced to admit that he needs more time to deliver reform in public services.

In a speech in London last night, Tony Blair acknowledged that it would not happen overnight.

“We never said we could transform the public services in a few years,” he said. “It takes time to reverse decades of neglect and under-investment.”

Earlier, he had been joined by Gordon Brown in urging ministers to focus on the domestic agenda.

The chancellor said that the battleground for the next general election was now on Labour issues such as public services and the economy.