Rishi Sunak has insisted the UK is a better place to live now than in 2010, when the Conservatives came into government.

In one of his last big interviews before Thursday’s general election, the prime minister said the Covid pandemic and the war in Ukraine had made life “difficult for everyone” but added that the country was now “on the right track”.

Labour said prices in shops, NHS waiting lists and mortgages had risen under the Conservatives and that it was “excruciating to watch Rishi Sunak just gloss over the concerns of ordinary working people”.

Speaking to the BBC’s Sunday With Laura Kuenssberg, Mr Sunak rejected a “declinist narrative”, and defended Brexit saying it was “utterly wrong” to suggest the UK had lost its standing in the world since leaving the EU.

Appearing on the same programme, Labour’s election co-ordinator Pat McFadden said he thought relations with the EU could be better but ruled out a return to freedom of movement as part of any negotiations.

He said Labour would not sign up to anything that wasn’t in the UK’s interest.

“The point is to try, the point is to say can we do better than we are doing at present can we deal with some of these barriers to trade affecting so many of our businesses.”

Liberal Democrat deputy leader Daisy Cooper said the current Brexit deal was “botched” and that her party wanted to see free movement for under-35s to work or study in Europe.

She also suggested immigration was too high but avoided putting a figure on what she thought the limit should be.

On 4 July, Mr Sunak will be hoping to secure another term in government for his party – the fifth since 2010, when David Cameron led a coalition with the Liberal Democrats.

Asked if the UK had become a better or worse place to live over the past 14 years, Mr Sunak said it was better.

He said Covid and the war in Ukraine had driven up people’s bills but added that his government had made progress on tackling those problems.

“Inflation back to normal, the economy growing again wages rising, energy bills set to fall again, now we are able to cut people’s taxes,” he said.

Mr McFadden said that during its time in government the Conservatives had made unfunded promises which had hurt people financially.

He said Labour were showing a “greater degree of financial responsibility” and that the Conservatvies were offering a “desperate wish-list of unfunded commitments”.

The SNP’s Westminster leader Stephen Flynn accused the two main parties of a “conspiracy of silence”, saying neither were telling voters about the public sector cuts they would implement after the election.

On Brexit, Mr Sunak was asked if he thought leaving the EU had damaged the UK’s economy and standing in the world.

Mr Sunak – who backed Brexit during the 2016 referendum – said it had changed the UK’s trading relations but argued it had also enabled the government to cut red tape for businesses and sign new trade deals.

“People are queuing up to work with us because they respect what we do. I completely reject that – it is entirely wrong this declinist narrative people have of the UK,” he said.

He also pointed to an agreement with the US and Australia to build submarines and the role the UK played in supporting Ukraine.

He also dismissed suggestions – made by the Climate Change Committee – that the UK had lost its standing as a world leader on climate change.

Mr Sunak argued the UK had decarbonised faster than other countries and defended his decision to row back on some previous climate commitments, saying he didn’t want to “saddle” UK taxpayers with extra costs.

During the interview, Mr Sunak was also asked about a racial slur directed at him by a Reform UK canvasser.

The prime minister said the comments were “vile and racist and wrong”.

He said there was a “clear difference” between how Reform UK leader Nigel Farage had handled the row and his own actions when Tory donor Frank Hester made racist comments about the politician Diane Abbott.

He said Mr Hester had apologised and been “genuinely contrite” whereas the Reform canvasser Andrew Parker had shown no remorse.

Speaking to Sky News, Mr Farage said the canvasser had been putting on “an act” and his comments had been “a deliberate attempt to de-rail our campaign”.

He said he had had to disown a dozen of his candidates over comments they made adding: “I’ve got some people there I’d rather weren’t there, and they won’t be after next Thursday at all.”

After his comments were broadcast by Channel 4, Mr Parker said: “Neither Nigel Farage personally or the Reform Party are aware of my personal views on immigration”.

“I would therefore like to apologise profusely to Nigel Farage and the Reform Party if my personal views have reflected badly on them and brought them into disrepute as this was not my intention.”