The new Labour government in the UK, having been in power for just over three weeks, has revealed that the public finances are in worse condition than anticipated.

Cabinet Office minister Pat McFadden disclosed that the Labour administration has uncovered new information regarding the UK's public spending liabilities since taking office.

Treasury insiders have pointed to unexpected costs, particularly in public sector pay, which may exceed earlier budget estimates.

Labour has also identified higher-than-expected costs related to the Rwanda asylum scheme, including previously unknown operational expenses.

The estimated cost of the Rwanda asylum scheme has surged from £400 million to £700 million, with additional billions anticipated.

In response to prison overcrowding, the justice secretary announced early releases for some offenders, labeling the situation an emergency.

The Department of Health and Social Care has reported that hospital building programs in England will exceed their budgeted costs.

The Institute for Fiscal Studies (IFS) has projected that some government departments could face budget cuts ranging from £10 billion to £20 billion.

The Treasury is set to release a detailed report explaining the discovered 'black hole' in finances, which is expected to highlight the need for tough decisions ahead.

This upcoming Treasury statement is anticipated to lay the groundwork for potential tax increases in the autumn budget, particularly targeting wealthier individuals.

Warnings during the election campaign indicated that the government might need to consider tax increases or spending cuts due to a squeeze on public finances.

The Labour government aims to shift the narrative to place blame for financial troubles on the previous Conservative administration, reinforcing the idea that it left the country 'broke and broken.'