England's abysmal World Cup campaign continues to falter but coach Tony Smith is adamant the Lions are still capable of winning the trophy.

The Lions surrendered a 16-point lead to fall 36-24 to New Zealand in Newcastle on Saturday night as the Kiwis ran in five unanswered tries to deliver a psychological blow ahead of the semi-final re-match.

The execution and ease of New Zealand's tries is of most concern to Smith and the "angry" coach says he will make changes to his side ahead of next Saturday's likely semi-final with New Zealand in Brisbane.

Smith rested stars James Roby, James Graham and Leon Pryce from the pool clash and all should slot straight back into the side next week.

Replacement hooker Mickey Higham was outstanding on Saturday night and should find a spot on Smith's bench, so too Warrington second-rower Ben Westwood.

But exactly where Smith plays the elusive Pryce is uncertain after centre Martin Gleeson produced a stunning first half when slotted into the unfamiliar five-eighth role alongside halfback Rob Burrow.

Smith gave little away when asked of possible changes to his side next week.

"We've seen everybody now and we can sit down and make sure we pick the right team to go on with it for next week," said Smith.

"The fact we scored points early on in a game was some improvement. We need to build on that and we're determined to do so."

The loss was England's third disappointing performance in as many games this World Cup after a lacklustre win over Papua New Guinea was followed by a record flogging from Australia last week.

But none of that matters now as the competition reaches the sudden death stage and a semi-final win over the Kiwis will book a place in the grand final.

"Whether we won or lost (against New Zealand last night) we have got to win next week," he said.

"We just have to get everything together next week and we have a lot to play for next week.

"We've still got to win the game next week and the scoreboard will be nil-all when we start.

"We've got one more shot at it. If we do well there we find ourselves in a Cup final and that's what we're aiming for.

"What happened (last night) will be well and truly forgotten after next week providing we do the right things."

Meanwhile Tonga capped their up and down tournament last night with a 48-0 thumping of Scotland in Rockhampton to secure a seventh place finish.

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