'Pain is coming' - Starmer issues stark warning of crippling tax hikes and spending cuts in just weeks

Hinting at possible tax rises for the highest earners during an address to the nation, the Prime Minister said: "Those with the broadest shoulders should bear the heavier burden" and "those who made the mess should have to do their bit to clean it up".

He continued: "I will be honest with you, there is a budget coming in October and it's going to be painful."

"Just as when I responded to the riots, I'll have to turn to the country and make big asks of you as well to accept short-term pain for long-term good. The difficult trade-off for the genuine solution."

Speaking from the Rose Garden in Downing Street, Starmer warned things are "worse than we ever imagined" after his Government found a "£22billion black hole in the public finances", just weeks after being elected.

He explained Britons will have to "accept short-term pain for long-term good" and said his Government did not account for the huge hole in public finances before the election.

Starmer said: "It's not the position I want to be in but we have to end the politics of the easy answer that solves nothing.

"I said change would not happen overnight.

"When there is a deep rot at the heart of a structure, you can't just cover it up... you have to overhaul the entire thing, tackle it at root. Even if it's hard work or takes more time."

Starmer reaffirmed his campaign promise not to increase income tax, national insurance or VAT, in favour of working people.

But nothing was ruled out about other taxes being increased.

Many experts have speculated that the Chancellor, Rachel Reeves could hike capital gains and inheritance tax as a way to raise money.

Starmer continued: "In the first few weeks we discovered a £22billion black hole in the public finances and before anyone says 'Oh this is just performative or playing politics' let's remember the OBR (Office for Budget Responsibility) did not know about it, they wrote a letter setting that out.

"They didn't know because the last government hid it and even last Wednesday, just last Wednesday, we found out that thanks to the last government's recklessness we borrowed almost £5 billion more than the OBR expected in the last three months alone. That's not performative, that's fact."

He pledged to make boosting wealth and growing the economy the “number one priority of this Labour Government”.

He also insisted that his team has done more for the country in seven weeks than the Conservatives managed in seven years.

The Prime minister promised to put himself at the service of workers as he addressed the audience of nurses, teachers, firefighters and small business bosses in the No10 gardens today.