Theme B: The Chancellor of the Exchequer Flashcards
What is the role of the Chancellor of the Exchequer?
The Chancellor of the Exchequer budgets for income, expenditure and debts, manages risks, and makes decisions about the allocation of public funding.
What is a key responsibility of the Chancellor of the Exchequer?
A key responsibility is to allocate the annual budget for government spending on public services.
When was the annual budget traditionally delivered?
Traditionally, the budget was delivered in March as the financial year starts in April.
When was the annual budget delivered in 2018?
In 2018, the annual budget was delivered in October.
Where is the budget speech delivered?
The budget speech is delivered in the House of Commons and is carried in a red briefcase.
What happens six months after the budget is delivered?
A review of the budget happens six months after it is delivered, looking at the spending for the next financial year.
What is the expenditure limit for health?
The expenditure limit for health is £155bn.
What is the expenditure limit for education?
The expenditure limit for education is £102bn.
What is the expenditure limit for social protection?
The expenditure limit for social protection is £252bn.
What is the expenditure limit for public order and safety?
The expenditure limit for public order and safety is £35bn.
What is the expenditure limit for defence?
The expenditure limit for defence is £49bn.
What is the expenditure limit for transport?
The expenditure limit for transport is £35bn.
What is the expenditure limit for housing and environment?
The expenditure limit for housing and environment is £31bn.
What is the expenditure limit for industry, agriculture, and employment?
The expenditure limit for industry, agriculture, and employment is £23bn.
What is the expenditure limit for personal social services?
The expenditure limit for personal social services is £32bn.
What is the expenditure limit for net debt interest?
The expenditure limit for net debt interest is £41bn.
What is the total expenditure for other (including EU transactions)?
The total expenditure for other (including EU transactions) is £53bn.
What is the predicted spending on public services for the financial year 2018-2019?
The predicted spending on public services for the financial year 2018-2019 is a total of £609 billion.
What is the predicted income for the financial year 2018-2019?
The predicted income for the financial year 2018-2019 is £876 billion.
What happens when a government cannot raise enough money through taxation?
When a government cannot raise enough money through taxation, it needs to borrow money.
What is one responsibility of the Chancellor of the Exchequer?
One responsibility of the Chancellor is to balance the books.
What does the Chancellor have to manage when government income is less than government expenditure?
The Chancellor has to manage risks and make decisions about the allocation of public funding.
What can result from the Chancellor’s management of public funding allocation?
This can lead to a period of austerity in government spending.
What is austerity?
Austerity is an economic term to describe how a government tries to reduce its budget deficits.
