Year 10 - Citizenship
What are the financial challenges facing local government?
How does the economy work?
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This pupil-friendly study guide includes a unit summary, clear notes, common mistakes, and quick questions with answers.
Unit Summary
Pupils learn what the economy is, what taxes are and consider local and central government spending and risk management.
Lesson Summary
You will learn to explain what local governments fund and how local councils are funded.
Key Notes
- Local government deliver essential public services, including education, social care and waste management.
- Local councils are funded through government grants, business rates, Council Tax contributions and fees and fines.
- A key financial challenge for local government is the reduction of central government funding.
- Increased demand for public services intensifies fiscal pressure on council budgets.
- Local councils also contend with revenue uncertainty from business rates and restricted income-generating powers.
Vocabulary To Learn
- local government: a system of government that operates at a local level providing services to its community
- public services: essential needs provided by the Government or local authorities to meet the needs of the public, such as healthcare, education, transportation and safety
- local council: an elected body responsible for local decisions, including parish councils, city councils and county councils
- Council Tax: a local, direct tax calculated on the basis of the value of a property and the number of people living there
Common Mistakes To Avoid
- Local government has no control over their finances because the Government controls the Budget.
3 Quick Questions (With Answers)
1. Explain the lesson in two key points.
Local government deliver essential public services, including education, social care and waste management. Local councils are funded through government grants, business rates, Council Tax contributions and fees and fines.
2. What does this key word mean in this lesson? 'local government'
a system of government that operates at a local level providing services to its community.
3. Correct this common mistake.
Mistake: Local government has no control over their finances because the Government controls the Budget. Correction: Devolution of the economy means that the Government have given local government more control over their local community spending.
More Lessons In This Unit
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