Funding

Question 1

funding local government

Answer 1

revenue - day-to-day expenditure
capital - cost of building infrastructure

Question 2

sources of revenue funding

Answer 2

• council tax
• business rates
• grants
• fees, charges and fines
• reserves

Question 3

council tax

Answer 3

based on capital value of a property and the assumption of 2 adults living there (exemptions)

Question 4

business rates

Answer 4

local tax levied on businesses
rateable value of property x national multiplier

Question 5

sources of capital funding

Answer 5

• borrowing
• capital receipts
• local lotteries
• EU grants/loans
• capital grants
• investments

Question 6

the budget

Answer 6

a statement made to the house of commons by the chancellor
- states nation’s finances and government proposals for taxation changes
- annually in autumn (major political event)
- reviews financial performance and forecasts likely economic movements

Question 7

direct taxes

Answer 7

taxes levied on income, wealth and profits
- income tax, corporation tax
- relative to income

Question 8

indirect taxes

Answer 8

taxes imposed by the government
- VAT, exercise duty
- universally same for everyone

Question 9

office for budget responsibility

Answer 9

• independent analysis of UK public finances
• assesses government progress on economic targets
• scrutinises treatury costings
• forecasts economy