Rachel Reeves’s recent budget announcement focused on increasing taxes to support the NHS, which is facing challenges due to long waiting lists and an aging population. While funding for the NHS was a priority, other sectors like universities and social care felt that the budget missed the mark in addressing their imminent crises and the need for reforms.
Experts have highlighted the importance of addressing the social care crisis alongside the NHS, as local councils struggle with limited budgets and staff shortages. The injection of £600 million into social care by the government was seen as a step in the right direction, but the lack of broader reforms in the system was concerning for many. The Health Foundation thinktank expressed disappointment in the absence of wider social care reform in the budget.
The rise in employer national insurance contributions by the government will also impact the social care sector, with calls for it to be exempted from the increase. Child poverty remains a pressing issue, with campaigners advocating for the reversal of the two-child benefit limit to alleviate the financial strain on families. However, there was no mention of scrapping the limit in Reeves’s budget speech, disappointing those hoping for a stronger focus on lifting children out of poverty.
Mental health charities were also left wanting more from the budget, as funding for mental health crisis centers fell short of expectations. While the budget outlined some support for crisis intervention, there were calls for more preventative measures to be implemented. Concerns were raised about the impact of cuts to sickness benefits on mental health, with details of potential changes yet to be revealed.
In the education sector, there were speculations about potential changes to tuition fees or reforms in England, but the budget did not address these issues directly. University chancellors may find some relief in the allowance for fees to rise with inflation from next year, but higher bills for national insurance contributions pose a new challenge. The overall funding situation for universities remains a source of worry, with warnings of possible bankruptcies for individual institutions.
Housing charities had hoped for an unfreezing of the local housing allowance across the UK to better align with rising rent levels, but this was not addressed in the budget. The decision to maintain the freeze was criticized by organizations like the Joseph Rowntree Foundation and the Women’s Budget Group, who highlighted the increasing housing affordability gap, particularly affecting women.
Overall, while the budget prioritized funding for the NHS, there were concerns across various sectors about missed opportunities for reforms and support. The long-term implications of the budget decisions remain to be seen, with ongoing challenges in social care, child poverty, mental health, education, and housing affordability needing urgent attention.