Students make their own decisions over how central government should spend the money they get from taxing the public.

Ask the class:

• What could the government spend more on?
• Where could they get more money from?
• How does the spending and taxation outlined in the Budget affect kids' ?

Explain that the worksheet is split into and expenditure and income.

1. Expenditure
They should decide what percentage of their expenditure should go to each particular area.

For example:

• 10% to the NHS
• 25% to Education
• 20% to Law and Order
• 5% to Defence
• 10% to Child Benefit
• 10% to Basic State Pension
• 20% to Benefits

2. Income
Students decide which areas they would raise taxes in to get more money.

They should decide what percentage of their income should come from each particular area.

For example:

• 20% from the Income Tax of lower earners
• 25% from the Income Tax of higher earners
• 5% from Beer
• 5% from Wine
• 10% from Spirits
• 10% from Tobacco
• 15% from Petrol
• 5% from Value Added Tax
• 5% from Car Tax

Write down their reasons for taking more from some areas and less from others, making clear why they feel some things should be taxed more heavily.

3. Use pie-charts
You may wish to give the two blank pie-charts on the worksheet to students to colour and label with their monetary decisions. Each sector represents 5% of the total budget.

Plenary
Who would be the winners and losers if the chancellor took the group's advice?

Could there ever be a Budget that would please everyone?

Teachers' Background

Get the main points of the 2003 Budget using the link at top right.