As the new government prepares for the King’s Speech, they face several pressing challenges that cannot be ignored. These are issues that Labour had highlighted as some of the most urgent problems the new government would inherit upon gaining power. Below are some of these challenges:
Public sector pay: England needs to make decisions regarding pay increases for public workers such as NHS staff, teachers, police, and prison guards, which must be concluded by the end of the month. If the government does not find at least an additional £7bn per year, wages for public sector workers may fall even further behind their private sector counterparts. This could potentially make recruitment more difficult and could provoke further public sector strikes.
Local councils: Five local authorities have gone into effective bankruptcy since the start of 2023, forcing them to make deep cuts to local services. A survey suggests that around one in 10 local authorities is likely to have to declare bankruptcy this year. Ministers could potentially allow struggling councils to receive a financial top-up to help keep them afloat. They could also allow local authorities to increase council tax or reduce the local services they are required by law to offer, although these options may not be popular among local residents.
Universities: Universities in England and Wales charge domestic students £9,250 per year, and this fee has been frozen in cash terms since 2017. Coupled with a recent drop in income from foreign students, this has led some experts to warn that a university could become bankrupt in 2024. The government may choose to allow universities to generate more income by raising the tuition fee or allowing more lucrative overseas students, but these options may not be welcomed by some groups.
Thames Water: Thames Water has debts of £15.2bn and only has enough cash to last until May 2025. If it fails, it will likely go into a government “special administration” regime to ensure households in the southeast of England continue to receive their water supply. The government may choose to wait and hope that Thames Water can raise private sector funds, or it may need to take action earlier, with the understanding that the ultimate cost to the taxpayer could end up being higher.
Prisons: According to Ministry of Justice data, prisons in England and Wales are 98% full, with just 1,451 places available. In September, the government plans to implement temporary early release for some prisoners who have served only 40% of their sentence. Experts suggest that this will provide just a temporary solution. The government may choose to increase the prison building program to cope with demand for places, which could be costly, or they may seek to reduce prison populations through sentencing reform, which could face backlash.
These issues present some major challenges that the new government must contend with. While potential solutions may not be popular with all groups, progress on these challenges will be necessary to maintain stability and progress within these sectors
Read the full article from The BBC here: Read More