Starter quiz
- People pay ______ to qualify for benefits and the state pension.
- 'National Insurance' ✓
- Which of the following is not primarily funded by taxation?
- the NHS
- state schools
- the police
- car insurance ✓
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- Which government department does the Chancellor of the Exchequer oversee?
- Department for Health and Social Care
- HM Treasury ✓
- Department for Work and Pensions
- Foreign, Commonwealth and Development Office
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- ______ is a progressive tax, meaning the more money you earn, the higher percentage of tax you pay.
- 'Income Tax' ✓
- Which of the following taxes would be a flat tax?
- Income Tax
- Council Tax
- Value Added Tax (VAT) ✓
- Corporation Tax
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- Match the income tax bands to the relevant tax rates.
- Personal Allowance⇔0% ✓
- basic rate⇔20% ✓
- higher rate⇔40% ✓
- additional rate⇔45% ✓
Exit quiz
- Match the words to their correct definitions.
- Budget⇔the Government's yearly financial plan for income and spending ✓
- Treasury⇔the Government department managing national finances ✓
- infrastructure⇔public facilities such as roads, bridges and transport networks ✓
- fiscal policy⇔government decisions on taxation and spending to affect the economy ✓
- Who is responsible for debating and approving government spending plans?
- the Bank of England
- the European Union
- local councils
- Parliament ✓
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- Government spending priorities are influenced by ______ conditions, societal needs and long-term financial planning strategies.
- 'economic' ✓
- 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
- the Prime Minister, the Chancellor of the Exchequer and the Treasury ✓
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- On which of these areas is the largest amount of UK Government funding spent?
- social protection ✓
- transport
- education
- defence
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- Why were some people unhappy about the furlough scheme introduced during the Covid-19 pandemic lockdowns?
- It only helped business owners, not workers.
- It increased government borrowing and future debt. ✓
- It caused immediate tax increases for everyone.
- It only supported healthcare workers.
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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.
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.
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
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