Public affairs Flashcards
(175 cards)
What is the Treasury?
The UK’s finance ministry responsible for taxation, managing national debt, tackling the deficit, promoting economic growth, and controlling inflation and unemployment.
Who heads the Treasury?
The Chancellor of the Exchequer.
What are the two ways of tackling the deficit?
- Borrowing more money
- Making cuts to reduce spending
What is the purpose of the Budget?
To announce how much the Government is going to tax, borrow, and spend.
When is the Budget delivered?
In spring time.
What does the Budget reveal about the country’s finances?
The general state of finances, progress against targets, and economic forecasts.
What organization provides forecasts for the economy and public finances?
The Office for Budget Responsibility.
What are the four main functions of the Office for Budget Responsibility?
- Forecasts of the economy and public finances
- Evaluation of Government’s performance against fiscal targets
- Scrutiny of Government’s policy costings
- Assessment of long-term sustainability of public finances
What happens after the Chancellor delivers the budget statement?
The leader of the opposition responds, followed by days of debate, and then the Budget becomes the Finance Bill.
Define inflation.
A sustained increase in the general price level of goods and services in an economy over time.
What measure does the UK use for inflation?
The Consumer Price Index.
What is a recession?
Negative economic growth for two consecutive quarters.
What is Gross Domestic Product (GDP)?
The total monetary or market value of all finished goods and services produced within a country’s borders in a specific time period.
What is Gross National Product (GNP)?
The total monetary or market value of all finished goods and services produced by companies from a specific country in a specific time period.
What is quantitative easing?
A monetary policy where a central bank buys government bonds or financial assets to inject money into the economy.
What is a direct tax?
A tax levied on the income or profits of the person who pays it, such as income tax.
What is an indirect tax?
A tax levied on goods and services rather than on income or profits, such as VAT.
What type of monarchy does the United Kingdom have?
Constitutional monarchy
What is the primary role of the Monarch in a constitutional monarchy?
Reigns but does not rule
Who is the current monarch of the United Kingdom?
King Charles III
What are the two categories of powers held by the monarch?
Actual powers and notional powers
What are actual powers of the monarch?
Powers carried out by the monarch personally
What are notional powers of the monarch?
Powers deferred to the Executive (Government)
Name one office held by King Charles III.
Head of state