What it means
A hot potato is a touchy issue nobody wants landing in their lap for long, because once you're holding it, you're the one getting burned. People use it for scandals, cuts, complaints, layoffs, or any messy problem that keeps getting passed around till some poor sod has to own it.
Usage examples
"Finance dumped the overtime cuts on me, proper hot potato. I tried to sling it to HR, but now I’m stuck explaining it to the lot."
"The complaint from the parents association about the new lunch menu at the primary school in Kensington has become a hot potato for the head of governors, who has scheduled three emergency meetings this week and asked the local council to take the matter on board."
"The decision about the bins collection schedule for the new estate in Macclesfield has become a hot potato in the regional council chamber, the conservative councillor has tabled a motion, the liberals have replied with a counter-amendment, and the residents are still putting their wheelie bins out on the kerb whenever they feel like it."
"That sexual harassment complaint turned into a proper hot potato, so management kept punting it between departments till legal got dragged in."
"The mayor made the housing cuts a hot potato and now every committee’s acting like if they touch it, their fingerprints will glow."
Where it comes from
It comes from the old parlour game where players had to pass an object along fast so they wouldn’t get caught holding it. By the late 19th century, English had stretched that image into politics and everyday life for any awkward, risky issue people wanted rid of sharpish.