Deputy leadership candidate says party needs to be ‘clear that our objective is to lift children out of poverty’

Labour should consider raising taxes on gambling firms to cover the cost of lifting the two-child benefit cap, the party’s deputy leadership candidate Lucy Powell has suggested.

The Manchester Central MP, who is battling with the education secretary, Bridget Phillipson, to succeed Angela Rayner as Labour’s deputy leader, also acknowledged the public was “exasperated” because of “some mistakes” Labour had made in office.