The UK’s new prime minister will arrive in Downing Street to an overflowing in-tray of potential problems – an all-consuming cost of living crisis, dire warnings about the state of the NHS, and an ongoing war in Ukraine.
Seven BBC correspondents identified some of the biggest questions No 10’s latest occupant will have to tackle.
Faisal Islam, economics editor
The new prime minister won’t actually be able to solve fully their biggest challenge – the cost-of-living crisis. And it’s got notably worse during the leadership campaign. At its core is the problem that energy, especially gas, is not flowing normally. This is primarily because of the Ukraine conflict and the conscious actions of the Kremlin. Prices spiked further recently, as European nations stored up gas for the winter.
The overall result is energy prices most people will find unaffordable. The extent, timing, and targeting of help – which will stretch into tens of billions of pounds just for households – are the key judgements the new prime minister will face.
Other prices – especially for food – are also surging, which could lead the inflation rate beyond 15%. All that is before the impact of further falls in the value of Sterling. Meanwhile, interest rates are on the rise, not just for families, but also for companies and the government itself. It is a toxic economic cocktail, and will require judicious, credible, and timely interventions.
NHS performance has been deteriorating for the best part of a decade, but the pandemic has exacerbated its problems even further. Record numbers are on hospital waiting lists – nearly one in eight people are currently waiting for treatment. Meanwhile, emergency services are warning patients are being harmed because of delays responding to 999 calls and long waits in A&E.
There is the threat of industrial action, with unions unhappy with pay. And all this is happening ahead of winter, with the prospect of flu and Covid circulating at high levels for the first time. Part of the problem hospitals are facing is the inability to discharge patients when they are medically fit to leave because of a lack of social care places.
The government does have a plan for social care – the care cap – but that is about protecting people’s assets rather than providing more funding for services. Even then, there has been debate about whether the government is right to increase national insurance to pay for it, in part because of rising inflation.