General election: Testing in-tray for next government

The next government will inherit a testing in-tray. FT writers explore some of the challenges facing the UK's next ministers:

David Cameron has promised a referendum by 2017 on Britain's membership of the EU, with the vote taking place after the new government has attempted to renegotiate the terms. The Conservative party is divided on Europe, with a substantial minority of Tory MPs favouring withdrawal from the Union. Mr Cameron has promised to campaign to stay in the EU if his renegotiation is successful, but the referendum has the potential to divide his party, especially if he wins only limited concessions from Brussels.

Though not nearly as big as in 2010, Britain's public sector deficit is still almost the worst of advanced economies at 5 per cent of national income. Everyone agrees it needs to fall but dispute the extent and pace of necessary deficit reduction.

All eyes will be on an early budget and spending review planned for the autumn. This is likely to set the spending limits of government departments over the next four years. Agreeing cuts may prove more difficult in a government which is likely to lack a strong working majority. Keeping a promise to maintain health spending in real terms will mean sharper cuts elsewhere.

The Scottish National party landslide in Scotland on a platform of fighting Conservative government spending cuts and giving their nation a stronger voice presents Mr Cameron with a tricky challenge. SNP leader Nicola Sturgeon will use the clout of her estimated 56 MPs in Westminster to press for additional powers for Scotland and to oppose the next government's plans for further austerity.

Mr Cameron promised in his victory speech at his Witney constituency to hasten reforms devolving more power to Holyrood. He will face pressure from his own party to limit the right of Scottish MPs to vote on Westminster legislation affecting only England. But he will also be urged to bear in mind the long-term dangers to the Union posed by curbing the powers of Scottish MPs.

The incoming government will probably have to inject hundreds of millions of pounds into the NHS within a short time of coming into office, simply to stabilise a deficit-stricken service. But cash will be only part of the answer to tricky questions about how to ensure the survival of the NHS for the long term.

As the health service struggles with its own productivity challenge, workforce reform will almost certainly be on the cards, perhaps involving changes to the terms and conditions of its 1.4m staff and less rigid demarcations between the roles of GPs and pharmacists, for example.

The main problem facing any future home secretary will be taking action to control immigration at a time when at least half the new migrants are coming from within the European Union. In an effort to make the UK less attractive, both main parties have promised to restrict future EU migrants access to benefits such as tax credits and child benefit, although they will need to negotiate these changes with Brussels.

Reports by Chris Giles, Sarah Neville and Helen Warrell

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