What are the financial challenges facing local government?
I can explain what local governments fund and how local councils are funded.
- Year 10
What are the financial challenges facing local government?
I can explain what local governments fund and how local councils are funded.
Lesson details
Key learning points
- Local government deliver essential public services, including education, social care and waste management.
- Local councils are funded through government grants, business rates, Council Tax contributions and fees and fines.
- A key financial challenge for local government is the reduction of central government funding.
- Increased demand for public services intensifies fiscal pressure on council budgets.
- Local councils also contend with revenue uncertainty from business rates and restricted income-generating powers.
Keywords
Local government - a system of government that operates at a local level providing services to its community
Public services - essential needs provided by the Government or local authorities to meet the needs of the public, such as healthcare, education, transportation and safety
Local council - an elected body responsible for local decisions, including parish councils, city councils and county councils
Council Tax - a local, direct tax calculated on the basis of the value of a property and the number of people living there
Common misconception
Local government has no control over their finances because the Government controls the Budget.
Devolution of the economy means that the Government have given local government more control over their local community spending.
Equipment
Content guidance
- Depiction or discussion of sensitive content
- Depiction or discussion of violence or suffering
- Depiction or discussion of mental health issues
- Depiction or discussion of serious crime
Supervision
Adult supervision required
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.Which of the following areas of spending is not part of social protection?
Q2.When the Government spends more than it earns, it must money to cover the shortfall.
Q3.Of those listed below, who plays the biggest role in deciding where Government money is spent?
Q4.Match each economic situation to the most likely government response.
Q5.Why do some people argue for more NHS funding over other areas?
Q6.Match each tax to its main purpose or use.
Assessment exit quiz
6 Questions
Q1.What is the relationship between central government and local government, in relation to funding?
Q2.Which of the following is not a responsibility of local government?
Q3.A key financial for local government is the reduction of central government funding.
Q4.Match the source of funding for local councils with the relevant explanations.
