 Gordon Brown's fortunes have varied in 2007 |
The admission by Justice Secretary Jack Straw comes as Gordon Brown used his New Year message to say 2008 will see "real and serious changes" in the UK.
The government would see through reforms in "vital areas" such as energy, pensions and health, he said.
In his message, Tory leader David Cameron pledged to set the 2008 agenda.
Past difficulties
Mr Straw, who is also Lord Chancellor and one of Mr Brown's closest cabinet colleagues, told the Sunday Times the prime minister had faced difficulties in recent months that must be put right.
And in a rare admission by a senior minister, he acknowledged Mr Cameron may have benefited from the government's recent woes and that his messages appear to be "resonating" with voters.
Ministers have previously sought to dismiss the Tory leader as lacking in substance.
Justice Secretary
Mr Straw, who ran the prime minister's leadership campaign, said the key for Labour was showing the public that it was making "decisions that are relevant to their futures and not just resting on our laurels".
"All periods are crucial in government - and up to two-and-a-half years before the next election, which is a long time - but for sure we have got to make clear progress in the next year and everybody understands that," he added.
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