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Budget 2000


The Model

You are about to feel what it is like to be the chancellor of the exchequer, to run the nation's economy - or rather the Virtual Economy - as you think fit.

To make any changes, use the drop-down menus - just select the value that is closest to what you want. When you are happy with your reforms, click the 'Run Model' button at the end.

The results come out as figures and graphs - so if using a slow link you might want to turn off your images.

If you are interested in further details, they can be found at the IFS.

1.Decide which of the variables you want to change:

2.Press the Run Model button.
You can Reset the model and start again at any time.

 Tax  Help on Tax
 Tax Bands  Help on Tax Bands
 Rate Threshold in £ per year  
 
 
Note that all income tax figures are in pounds (£) per annum.

 Income Tax Allowances  Help on Allowances
   Personal Allowance (£ per year)  Restriction
 Personal Allowance
 Age Allowance
 Children's Tax Credit

 Macroeconomic Variables
 For subsequent years, uprate the tax system
 Base Rate
 Government capital spending
 Government current spending (real terms, 1995 prices)



 National Insurance  Help on National Insurance
 Bands
 Contacted-in rate  Threshold (£ per week)
 Contracted-Out Rebate

 Other Parameters
 National Insurance Ceiling in £ per week


 Indirect Taxes  Help on Indirect Taxes
 Specific Duties
 Beer (extra per pint)
 Spirits (extra per bottle of whisky)
 Petrol (extra per litre of 4-star)
 Wine (extra per bottle)
 Tobacco (extra per packet of 20)
 VAT (Value Added Tax)

 VAT on Specific Goods
 Books (%)
 Childrens Clothes (%)
 Food (%)
 Fuel (%)
 Car Tax (Vehicle Excise Duty (%)



 Benefits  Help on Benefits
Note: the model does not calculate macroeconomic effects of any of the following benefit variables
 Specific Benefits
 Child Benefit for all children
 Extra Child benefit for the first child
 Job Seekers Benefit
 Retirement Pensions
 Other National Insurance (NI) Benefits
 Working Families Tax Credit (WFTC)
 WFTC Taper (%)
 Income Support
 Rebates (Housing Benefit)
 Rent Rebate Taper (%)
Values are in pounds (£) per week where appropriate

 Budget Constraints
Instead of producing calculations for all our families, it is also possible to produce a Budget Constraint plot for one of the families. These graphs show how the net income of the family changes as the earnings of one of the family members change.



The system used here was originally developed by BizEd and The Institute for Fiscal Studies, with funding from The Nuffield Foundation. The MacroEconomic model and forecasts were provided by Oxford Economic Forecasting. Web development was by KB7.