Keir Starmer warned the budget in October will be “painful” as campaigners demand the poorest can’t pay the price for past failures.

The Prime Minister made a speech outlining there will be “tough actions” when Chancellor Rachel Reeves reveals her first budget.

He said: “There is a Budget coming in October, and it's going to be painful. We have no other choice, given the situation that we're in.

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"Those with the broadest shoulders should bear the heavier burden, and that's why we're cracking down on non-doms.”

The Prime Minister prepared the country for unpopular decisions but said there would be no tax rises for working people.

He added: "But, 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.

"And I know that, after all that you have been through, that is a really big ask and really difficult to hear.

"That is not the position we should be in. It's not the position I want to be in, but we have to end the politics of the easy answer - that solves nothing."

On taxes, he said: “We were being honest about the situation before the election, we set out very clearly what we would be doing with tax rises.

"I made it clear on numerous occasions that national insurance, VAT and income tax would not go up, the triple lock for working people, and that remains the position.”

He said, however, he did not expect a £22billion black hole.

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Campaigners, meanwhile, have warned there must be no delay in tackling poverty.

Peter Kelly, Poverty Alliance chief executive, said: “The Prime Minister might be correct about the current state of the public finances, but people living on low incomes cannot again pay the price for this neglect.

“There’s no justification for a lack of urgent action to tackle the injustice of poverty.

“We are one of the wealthiest countries in the world and that collective abundance has grown massively over the decades.

The Prime Minister can use powers over tax and investment to unlock that wealth, and build a better future for all of us - especially for people who are suffering now and desperately need a foundation to build a life beyond poverty.”

John Swinney, First Minister said the decisions taken by Starmer and Reeves will have an impact on Scotland

He said: “Throughout the election, I warned about the huge financial pressure in public services and called for significant new investment from the UK Government.

“I was told there would be no austerity under Labour. Well, here it is. Scotland will be affected by UK decisions.”