How does the Government spend its money?
I can explain what the Government spends money on and how it makes spending decisions.
How does the Government spend its money?
I can explain what the Government spends money on and how it makes spending decisions.
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Lesson details
Key learning points
- The Government allocates funding to essential public services, including health, education, defence and infrastructure.
- Financial decisions are determined by the Treasury and debated in Parliament to uphold democratic accountability.
- Spending priorities are influenced by societal needs, economic conditions and long-term fiscal strategies.
- Ongoing debates consider whether increased investment should be directed more to sectors such as the NHS or housing.
- Government spending seeks to balance economic growth, public welfare and fiscal responsibility.
Keywords
Budget - the Government's yearly financial plan, showing how much money it will collect and spend on public services like healthcare, education and transport
Treasury - the Government department responsible for managing the country's finances
Common misconception
The only person in charge of finances in the UK is the Chancellor of the Exchequer.
There is a whole structure of people in charge of the UK economy within the Treasury, including the Prime Minister who is the First Lord of the Treasury.
Equipment
Content guidance
- Depiction or discussion of discriminatory behaviour
- Depiction or discussion of sensitive content
- Depiction or discussion of violence or suffering
Supervision
Adult supervision required
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.People pay to qualify for benefits and the state pension.
Q2.Which of the following is not primarily funded by taxation?
Q3.Which government department does the Chancellor of the Exchequer oversee?
Q4. is a progressive tax, meaning the more money you earn, the higher percentage of tax you pay.
Q5.Which of the following taxes would be a flat tax?
Q6.Match the income tax bands to the relevant tax rates.
0%
20%
40%
45%
Assessment exit quiz
6 Questions
Q1.Match the words to their correct definitions.
the Government's yearly financial plan for income and spending
the Government department managing national finances
public facilities such as roads, bridges and transport networks
government decisions on taxation and spending to affect the economy