Prime minister Keir Starmer has warned the British public that of a “painful” budget later this year as the government grapples with a £22 billion “black hole” in public finances.
Speaking at Downing Street on Tuesday, Starmer said there was “no other choice” as the Labour government approaches its first budget on October 30.
“There is a budget coming in October, and it’s going to be painful,” he said, according to PA reporters.
“Those with the broadest shoulders should bear the heavier burden, and that’s why we’re cracking down on non-doms.
“Those who made the mess should have to do their bit to clean it up - that’s why we’re strengthening the powers of the water regulator and backing tough fines on the water companies that let sewage flood our rivers, lakes and seas.”
Starmer added plans remained to ensure national insurance, VAT and income tax would not be hiked, but said he would not “pre-empt the budget” when asked about increases elsewhere.
Discussing an end to winter fuel payments for those not in receipt of pension credit, he urged that it “was a choice that we had to make [...] doing what is necessary to repair the public finances”.
The move is set to see 10 million pensioners lose out on the energy bill support of up to £300 each this year, in turn saving £1.4 billion.
Starmer said there was a need to be “honest with people about the choices that we face”.
“Things will get worse before they get better,” he warned.
Former Tory PM Rishi Sunak, now the leader of the opposition, said in a tweet that the speech "was the clearest indication" that Labour plans to raise taxes.
The tone of the speech also came in for criticism from the general secretary of the Unite union, Sharon Graham, who said in a tweet: "We don’t need more excuses about fiscal responsibility or talk of wealth creation."
She acknowledged that Britain "is in crisis" but said it was not beyond the government to find funds to rebuild industry, infrastructure and public services.
"If we taxed 1% on the wealthiest 1%, the so-called black hole would be gone," she wrote.