What are the financial challenges facing local government?
Lesson details
Learning outcome
I can explain what local governments fund and how local councils are funded.
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.
Teacher tip
Research your own local area and adapt this lesson to your own local council and its specific funding. You can do this by finding statistics and information on the Government website and your local council authority to explore and explain the local economy.
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.
increased investment in public services
lower taxes or increased government borrowing
measures to reduce spending, such as higher interest rates
Q5.Why do some people argue for more NHS funding over other areas?
Q6.Match each tax to its main purpose or use.
funds local services like waste collection and social care
paid by companies on their profits to fund public services
taxes on specific products like alcohol, tobacco and fuel
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.
a tax paid by businesses on the properties they use
a tax on property owners or renters
funding provided to councils to help run local services
Q5.How does inflation create a financial challenge for local councils?
Q6.Which of these local government services is considered essential?
To help you plan your 10 citizenship lesson on: What are the financial challenges facing local government?, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 10 citizenship lesson on: What are the financial challenges facing local government?, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 4 citizenship lessons from the How does the economy work? unit, dive into the full secondary citizenship curriculum, or learn more about lesson planning.