New
New
How does the Government spend its money?
I can explain what the Government spends money on and how it makes spending decisions.
Lesson 4 of 6
New
New
- Year 10
How does the Government spend its money?
I can explain what the Government spends money on and how it makes spending decisions.
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.
There may be some current debates happening in the news about the economy which you could include in the lesson to allow pupils the chance to critically evaluate different sources of material when debating financial affairs.
Teacher tip
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
This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.People pay to qualify for benefits and the state pension.
People pay to qualify for benefits and the state pension.
Q2.Which of the following is not primarily funded by taxation?
Which of the following is not primarily funded by taxation?
the NHS
state schools
the police
Q3.Which government department does the Chancellor of the Exchequer oversee?
Which government department does the Chancellor of the Exchequer oversee?
Department for Health and Social Care
Department for Work and Pensions
Foreign, Commonwealth and Development Office
Q4. is a progressive tax, meaning the more money you earn, the higher percentage of tax you pay.
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?
Which of the following taxes would be a flat tax?
Income Tax
Council Tax
Corporation Tax
Q6.Match the income tax bands to the relevant tax rates.
Match the income tax bands to the relevant tax rates.
Assessment exit quiz
6 Questions
Q1.Match the words to their correct definitions.
Match the words to their correct definitions.
Q2.Who is responsible for debating and approving government spending plans?
Who is responsible for debating and approving government spending plans?
the Bank of England
the European Union
local councils
Q3.Government spending priorities are influenced by conditions, societal needs and long-term financial planning strategies.
Government spending priorities are influenced by conditions, societal needs and long-term financial planning strategies.
Q4.Who is responsible for making decisions about the UK’s financial plans?
Who is responsible for making decisions about the UK’s financial plans?
the Chancellor of the Exchequer
board members of the Bank of England
the Mayor of London
Q5.On which of these areas is the largest amount of UK Government funding spent?
On which of these areas is the largest amount of UK Government funding spent?
transport
education
defence
Q6.Why were some people unhappy about the furlough scheme introduced during the Covid-19 pandemic lockdowns?
Why were some people unhappy about the furlough scheme introduced during the Covid-19 pandemic lockdowns?
It only helped business owners, not workers.
It caused immediate tax increases for everyone.
It only supported healthcare workers.
