Labor insiders say the party will have to spend more on cost of living measures and basic services such as roads in heartland seats in Melbourne’s west to stave off further electoral damage, after its primary vote collapsed in a state byelection that signals danger for the Albanese government ahead of the looming federal election.

Federal officials on Sunday sought to play down the implications for federal Labor of the result in the state seat of Werribee, but conceded it had triggered some nervousness in Canberra that some voter anger at the Allan government would “bleed” into the federal campaign.