British Prime Minister Keir Starmer has warned that his government's October budget will be "painful".
Speaking ahead of the re-opening of parliament next week, he warned that "things will get worse before they get better".
Standing at a lectern, with the slogan 'Fixing the Foundations' written on it, Mr Starmer said that it would take time to root out the "deep rot" that his government has inherited.
He told an audience of 50 people, comprising apprentices, small business owners and public servants, that the return of parliament would not represent a return to "business as usual".
He dismissed suggestions that he was dishonest during the general election campaign, for not flagging potential tax rises and spending cuts.
Mr Starmer said that the fiscal watchdog, the Office for Budget Responsibility, was also not aware of a £22 billion "black hole" in the public finances.
"We have inherited not just an economic black hole but a societal black hole and that is why we have to take action and do things differently," he said.
"Part of that is being honest with people about the choices we face and how tough this will be.
"Frankly, things will get worse before we get better."
He said that those with the "broadest shoulders" would have to shoulder most of the pain in the upcoming budget.
Speaking about riots in several areas across the UK during the summer, Mr Starmer said that they revealed an "unhealthy society".
He blamed 14 years of "populism" and "failure" by the previous Conservative government.
He said that while the riots were under way, he had to check on a daily basis whether there were enough prison places to cater for those taking part.
Mr Starmer said that it was a "disgraceful" situation to be in, due to a lack of prison places.
Additional reporting Reuters
