funding Flashcards
(17 cards)
what is the main source of income for the UK government
taxation
name 3 major types of taxes collected by the UK government
income tax
VAT
corporation tax
what is income tax
A tax on individuals’ earnings and wages.
What is National Insurance
A tax that helps fund state pensions and certain welfare benefits.
what is VAT (value added tax)
A consumption tax added to most goods and services.
what is corporation tax
a tax on company profits
what are excise duties
taxes on specific goods like tobacco alcohol and fuel
what is council tax
a local tax on residential property used to fund local services
what is business rates
Taxes paid by businesses on the properties they occupy.
who manages government revenue and expenditure
HM Treasury
what is the national budget
A plan created by the government each year outlining income (revenue) and spending (expenditure).
what is budget deficit
When government spending exceeds income.
what is budget surplus
When government income exceeds spending.
what is public spending
Money spent by the government on services like health, education, defense, and welfare.
what are welfare payments
Financial support provided by the government to individuals in need.
What is the role of the Chancellor of the Exchequer
To oversee the UK’s economic and financial matters, including the budget.
What is the Office for Budget Responsibility (OBR)
An independent body that monitors public finances and forecasts government spending.
