Liberal MP Craig Kelly says the government is paying attention to the polls and the Coalition can regain lost ground before the next election.

The Morrison government is still lagging behind Labor on a two-party preferred basis.

This week has been mixed for the Coalition, with the government delivering a positive mid-year economic outlook on the same day explosive ‘sugar daddy’ allegations emerged about a senior MP.

Federal Liberal MP Craig Kelly admits the government is paying attention to the polls.

“We’d love the polls to be closer than what they are,” he tells Luke Grant.

“To say you don’t look at them is not true, we look at them.”

Mr Kelly is confident the Coalition can regain lost ground, saying the difference will narrow as they get closer to the election.

“I think the reality is people are so busy with their work and their lives at the moment that they’re not yet focused on the policies.

“I believe those polls will tighten and this next election is going to be very, very tight.”

Click PLAY below for the full interview