Sir Keir Starmer said he would not offer “easy answers” or “false hope” but pledged Britain was “built to last” in his first speech to the Labor Party conference as prime minister.
He said Labor would deliver the “national reforms” the country wanted, but warned it would involve some “trade-offs”, such as new prisons and electricity pylons closer to home.
He also acknowledged his concerns about cuts for future fuel payments but he said “the stabilization of our economy is the first step of this long-term plan”.
The 54-minute speech also included a promise of a home for all military veterans in need and introduction a Hillsborough Law impose an honest duty on local authorities and civil servants.
His major speech in Liverpool came three months after Labour’s general election victory.
With the government focused on delivering on its manifesto promises, the speech contained several new policies.
However, Sir Keir focused on long-term reforms, which support has been dodged by his predecessor Conservatives – including in housebuilding and energy.
He did not repeat his rhetoric from last month about the “painful” Budget, insisting there would be “light at the end of the tunnel”.
But he said he wants to be direct with people about the challenges facing the district.
“If you bury your head in trouble, your country is going backwards,” he told the Labor delegation.
“So if we want justice to be done some communities will have to live close to the new prison.
“If we want to maintain support for the welfare state, then we will legislate to stop benefit fraud.
“If we want electricity to be cheaper, we need new pylons overground used to burden the taxpayer too much.”
One policy announced by Sir Keir was confirmation that the headquarters of GB Energy will be in Aberdeen.
He also promised that careless people, victims of domestic abuse and veterans would get a “guaranteed roof over their heads”.
Housing charity Shelter says changing entitlement rules for social housing will not address the shortage of available homes.
The PM also announced a reform of the apprenticeship system, which he said was the “first step” in his plan to eliminate youth unemployment.
BBC economics editor Faisal Islam said the targets were both ambitious and expensive, aligning Gordon Brown’s future projects funding from the financial crisis.
PM also the address summer riots are triggered by the Southport knife attack.
He blamed the violence on “thugs” and said those concerned about immigration should not be confused with those who are “destroying businesses” and “trying to burn refugees”.
He said the government wanted to reduce “net migration and our economic dependence” but added: “The debate is not about the value of migrants – they are toxic and we need to get beyond them.”
There was room for an awkward moment when, during the Middle East part of his speech, Sir Keir asked for the sausages back instead of the hostages.
He also said there should be de-escalation between Lebanon and Israel, an immediate ceasefire in Gaza and a two-state solution.
A pro-Palestinian heckler interrupted the speech. In response, Sir Keir said: “This guy will definitely get a pass to the 2019 conference” in reference to Jeremy Corbyn’s last time as leader.
“When they have protested, we have changed parties,” added Sir Keir.
He did not address the criticism he has faced in recent weeks about donations and tension in his government.
But he said the crowd’s criticism – including “noisy performance politics, the fantasy of weak and cowardly populism” – was “water off a duck’s back” for him.
And he took aim at his lack of showmanship, saying the country needed “stability, moderation and common sense”.
Most Labor union supporters praised Sir Keir’s speech, with Unison chairwoman Christina McAnea saying the government had the “commitment, vision and ability to repair and revitalize every part of society”.
But Unite General Secretary Sharon Graham said she thought the prime minister “could do better” and reiterated her criticism of winter fuel payment cuts.
Liberal Democrat deputy leader Daisy Cooper said millions of pensioners would be “disappointed” that the prime minister had not changed the cuts.