Major political parties

Political parties - groups of people share political views and goals

UK's political parties hold philosophical differences: how society improve under their leadership: present when standing for election

• Political party aim: win majority in a general election and form gov

• Most parties are ideological and members share political beliefs:

• Green Party and UKIP focus on issues

• At elections parties present manifesto: stating policies they would implement

Major political parties sit on political spectrum: left-wing to right-wing

Left wing

1. Communism - system where all resources in nation owned by state and shared amongst all

2. Socialism - system of common ownership offers more equality in society and robust welfare for those in need (labour)

3. Liberalism - belief in individual rights and less gov interference, laws only passed to improve society (liberal democrats)

4. Conservatism - belief in tradition, family values and authority, advocates of private ownership and free enterprise (conservative)

5. Facism - authoritarian and nationalistic system run by a dictator using force

Right wing

Key policies of main parties

Labour

Key principles

• Formed to represent working class

• Responsible for implementing welfare state and NHS

Education

• Create national education service

• Free education

Health

• Increase tax bill of top earners

• To fund NHS

Economic

• Reinstate public ownership of sectors: railways

• Increase taxation of rich

Social

• Extend welfare to meet need: promote equality

Conservative

Key principles

• Formed to protect British culture and tradition

• Promote private ownership

• Private enterprise

Education

• More selective schools to improve standards

Health

• Real terms increase in NHS spending

Economic

• Increase free trade

• Limit welfare

• Decrease gov spending

Social

• Encourage more home ownership

How are candidates selected

• 650 MP’s

• MP represents constituency

• Person wishing to become MP:

• Puts themselves forward as candidate

• Who can be selected and voted for in competitive process (election)

Eligible to be a candidate

• 18+

• British citizen

• Irish citizen

• CW citizen

• Nominated by 10 electors in constituency

• Pay £500 deposit (returned if 5% votes won)

• Authorised to stand for political party or choosing to be independent candidate

Not eligible to be a candidate

• Civil servant

• Member of police force

• Member of armed forces

• Gov-nominated director of commercial company

• A judge

• Peer in HOL

• Church of England bishop

• Subject of bankruptcy restrictions

• Convicted and imprisoned for over a year

• Found guilty of electoral corruption within last five years

How candidates are selected

1. Join and become politically active in chosen party

2. Parties advertise for candidates and those interested and eligible to apply

3. Parties have list of prospective candidates: politically active/advisors on areas of policy

4. Prospective candidates canvass for votes (try gain):

   • Public speaking at hustings (meetings)

   • Working for party in local constituency

5. Local party workers draw shortlist

6. Local party members vote for candidate to represent constituency

7. One with most votes is selected: if constituency typically votes for a political party, viewed as a secure by party: safe seat

The concept of democracy

Democracy stems from Ancient Greek politics

‘Rule of the people by people’

In UK describes system of gov where citizens elect political representatives

• Repesentative democracy (via elections)

• Direct democracy (via referendums)

Representative democracy

• Western nations operate system

• UK divided into 650 constituencies

• Each constituency elect an MP

• MP represent main political parties

Strengths

1. Every citizen has a say in who represents them

2. If there is high turnout parliament is more representative of public opinions

3. Constituents can lobby their local MP through locally held surgeries

4. Local MP will be very aware of needs of constituents

Weakness

1. Elections take place every five years: limit citizens input

2. Most MPs will vote with their party, rather than represent their constituency

3. The constituents whose party didn’t win feel unrepresented by gov

Direct democracy

• UK uses system of direct democracy for specific issues: need public input

• UK form of direct democracy: referendum: citizens vote on specific issue

• Referendum rare in UK

Recent referendums:

• 2016 UK to leave/remain in EU: outcome - leave 51.9% remain 48.1% (turn out 72%)

• 2014 Scottish independence: outcome - no 55% yes 45% (turnout 84%)

• 2011 change voting system from first pass the post to alternative vote: outcome - no 68% yes 32% (turnout 41%)

Strengths

• Referendum give gov clear directive from citizens on issue

• Every voter has a say on particular controversial issue

• Most democratic way to make decision

Weakness

• Often issues more complex than simply yes/no vote

• Not every citizen who votes understands complexity of issues

• Media can influence electorate

• If results close many unhappy

General elections

General elections give opportunity to vote for MP in 650 constituencies

Elected MPs represent constituency in HOC at Westminster

UK operates FPTP voting system: Candidate with most votes overall in constituency elected as MP

To form majority government: party must win 326 constituencies or more

Frequency of general elections

1. Under fixed term parliament act 2011 - general election happens at least every five years on first Thursday in May

2. If there is a ‘vote of no confidence’ in current gov an earlier election can be called

3. HOC can vote to hold an election anytime with 2/3 majority

Who can and cannot vote

Yes

• 18+

• UK/qualifying CW citizen

• Resident at address in UK

• Homeless people who completed declaration of local connection form

• Not legally excluded from voting

• MP

• Candidate standing in election

No

• Members of HOL

• Economic migrants from EU: don’t have full UK citizenship

• Convicted prisoners

• Person found guilty of election corruption (barred for five years)

Debates about extending the franchise to 16 year olds

Agree

• 16-year-old should have a say in their future as a gov is selected for five years

• Their education and training directly affected by policy makers

• Allowed to do other responsible things at 16: choose medical treatment

• Maybe more mature and educated than previous generations

Disagree

• 16-year-old not well informed

• Too immature to vote

• Influenced by peers or parents

EU parliament

Organised by Regional List System in Britain

Form of PR: impacts on which parties represented when compared with UK general elections (FPTP)

Electing members of EU parliament (MEPs)

1. EU elections take place every five years. UK elect: 73 MEPs in total. There are 12 electoral regions in UK each with 3-10 MEPS. Each party in each region puts forward list of candidates in order they will be selected

2. After votes counted seats allocated from top of lists working down, when available seats are allocated using below system, selected: become MEPs

Voting systems

FPTP electoral voting system used in UK general and local elections

FPTP

1. UK divided into 650 constituencies (electoral areas) each elect one candidate to become MP

2. Candidates standing in each constituency listed on ballot paper with party they represent, voters put cross next to candidate they want to vote

3. Candidate with most votes is elected MP for constituency

Strength

• Simple system to understand doesn’t cost much to run

• Results calculated quickly announced hours after voting closed

• Produce two-party system resulting in single part gov

Weakness

• Only winning votes count, so candidates elected on little public support

• Encourages tactical voting if voters preferred candidate unlikely to win

• Some constituencies ‘safe seats’ leading to vote or apathy and reduce turnout

PR

1. Seats awarded, depending on percentage of voters each party wins

2. Parties have a list of prospective candidates

3. Candidates are allocated seats based on popularity in party

Strength

• Fewer wasted votes

• Offers more choice to voters

• Further to minority/independent candidates

Weaknesses

• Produces more coalition governments

• MPs may have no links to constituency

• Allows extremist in political mainstream

Forming a government

Following election process of forming single party or coalition government begins

Monarch appoints PM

Reads speech in state opening of parliament

Single party gov

• Party can form single party gov if majority

• Majority formed by winning over half of results 326+

• Majority essential for parliament to work: each new law proposed by gov needs to be voted on, If no majority opposition, MPs could vote out proposed laws

Forming coalition gov

• If party doesn’t win majority (hung parliament)

• Party with most seats form coalition gov with support of another political party

• Difficult to pass laws as party. Values might need to be compromised to agree with coalition partners and vote laws through

Confidence and supply agreement

Instead of forming coalition gov a ‘confidence and supply’ agreement can be made with another party to support gov on a vote by vote basis

Role of monarch

1. Appointing gov: Monarch meets leader of winning party, after leader confirms they can form a new government monarch appoint them as PM

2. Reading speech at The State opening of Parliament: Monarch read speech in HOL officially open new sitting of parliament, written by new gov and outlines policies and proposed legislation

3. Monarch appoints black rod whose role includes responsibility for major ceremonial events

4. After Monarch read speech and left, parliament starts debating issues in speech

The Black Rod’s ceremonial role

Tradition of state opening of Parliament goes back to 14th century

• Takes place in HOL: consists of 800 unelected peers from a mixture of backgrounds

• Black rod senior officer in HOL summons HOC: consists of 650 elected MP’s to hear speech

• Doors of HOC shut in Black Rod’s face as symbol of independence from monarchy (a tradition from Civil War)

• After black rod strikes door three times: opened and MPs follow black rod to HOL to hear speech

Forming a cabinet

• Prime Minister has duty to appoint 22 trusted party members (cabinet)

• Cabinet: develop policies and lead departments

Organisation of a government

Government needs to organise into administrative departments, ministries, and agencies, all staffed by civil servants

Differences between gov ministers and civil servants

Gov ministers

1. Elected politicians

2. Represent political party

3. Can be changed through election or cabinet reshuffle

4. Responsible to parliament

5. Head of ministry department

6. Decide policies to implement

Civil servants

1. Appointed officials

2. Politically neutral

3. Permanent

4. Responsible to ministers

5. Work in ministeral departments

6. Prepare and advise on policy

Ministerial departments

New PM appoints cabinet ministers from HOC and HOL: each given responsibility for gov department

Number of departments change depending on needs of country at time

Key departments:

• Department for education

• The Home office

• His majesty’s treasury

• Ministry of defence

Senior civil servants

• 4000 senior civil servants

• Work with gov departments in non-political role

• Jobs are permanent not affected by outcome of elections

• Senior civil servants:

  1. Undertake preparation and presentation of new policies

  2. Experts in particular area

  3. Advise ministers, especially newly appointed on policies ministers wish to present in gov

Senior civil service roles

• Prepare legislation

• Find answers to parliamentary questions

• Brief gov minister

• Manage policies as progress through lawmaking procedure

• Meet representatives of different groups

Civil servants

Accountable to relevant ministers and strive to uphold values:

• Integrity: putting needs of public above personal interest

• Honesty: subjected to public scrutiny so have to be honest and open

• Objectivity: making decisions after a evaluating all relevant evidence

• Impartiality: serving all governments equally well

Civil service roles

Over 400,000 thousand other civil servants work across UK

Civil servants administer gov funds, institutions and departments:

• Paying benefits and pensions

• Running local departments

• Running his majesty’s prison service

• Driving license applications

Westminster Parliament

Executive, legislature, judiciary and monarchy all have distinct roles in Westminster Parliament.

Separation of powers exist to protect citizens and ensure no one government or leader has too much power

Separation of powers

4 distinct roles: system of ‘checks and balances’

In theory parts of separation of power should be independent

In UK system: overlap between executive and legislature

The executive: Prime Minister and cabinet propose new laws

• PM and cabinet, draw up and propose majority of new laws

• Have help with civil service

• Being in majority in gov mean: have numbers to vote laws through HOC

The legislature: HOC and HOL make and change the law

• Westminster is bicameral, meaning its political system of two houses make up legislature

• Members of both houses, debate, scrutinise, vote and create special committees to amend bills before passed as laws

• New laws cannot be passed, that would solely benefit gov power (changing election to every 25 years)

• HOL can also act as effective opposition at times when majority government is strong and opposition is perceived weak

The judiciary: judges and magistrates apply law

• Interpret laws

• Apply appropriate sentences for criminal behaviour in line with existing laws

The monarchy: integral to process and gives Royal assent to each law

• Monarch no longer rules country

• Monarchy is integral to lawmaking process and traditions of parliament

• Role of monarchy in parliament is to remain politically neutral

• Give royal assent to each new law

• Appoint black rod

• After general election monarch appoints PM and opens new session of Parliament

Private Members’ Bills

Executive doesn’t propose all new laws

Private Members’ Bills: introduced by members of HOL or HOC (not members of gov)

Introduced in either house

Go through same law making stages

If unsupported by gov: unlikely become law

House of Commons and Lords

Relationship between houses

Decisions made in one house have to be approved by other house

Creating system of checks and balances

Work of gov recorded in ‘Hansard’: transcription of debates and speeches in both houses official record: can be scrutinised by general public and journalists

Work of both houses:

• Make laws

• Check work of government

• Hold parliamentary debate

• Deliberate on public issues as part of process of making and shaping policy and legislation

House of Commons

• Publicly elected house of Parliament

• 650 MP’s each elected to represent constituency of UK

Roles

• Debating, examining, proposing and passing laws

• Work in small select committees, scrutinising, new laws and wider areas of gov work to challenge and hold gov to account

• Make decisions on financial bills

• Preparing questions to be answered at Prime Minister Question time

House of Lords

• Unelected house of Parliament

• Known as second chamber

• Independent from HOC

• Consist of 800 peers from mix of backgrounds

• Hereditary and lifetime, peers, judges, retired MPs

• People appointed due to personal experience

Roles

• Debating,examining, proposing and passing laws

• Working in small select committees to scrutinise and ammend new laws, and bills proposed by HOC using expertise to identify any errors

• Providing expertise in specific areas

Role of ministers and MPs

Role of Prime Minister

• Leadership of country

• Leadership of party

• Setting policy in line with their manifesto

• Management and leadership of cabinet ministers

• Overseeing gov and civil service

• First Lord of treasury

• Answering ministers questions during PM‘s question time

Role of Cabinet ministers

• Making decisions about national issues

• Directing gov policy

• Running governmental departments supported by senior civil servants

• Proposing new laws

Opposition and Shadow Cabinet ministers

• Leader of second largest party in HOC leads official opposition

• Opposition leader: selects shadow cabinet to mirror roles of cabinet

• Holds cabinet ministers to account through scrutiny of their work

• Develops policies in specific areas and may block or undermine gov policy

• If opposition wins next election, shadow ministers often take cabinet positions

MP roles

1. Party responsibilities

   • Promoting parties manifesto

   • Voting in support of party policies

   • Behaving in line with party guidelines

2. Common responsibilities

   • Sitting on committees

   • Participating in debates

   • Voting on legislation

   • Representing constituency

3. Constituency responsibilities

   • Running surgeries

   • Representing constituents interests

   • Attending local events

   • Advocating local causes

   • Supporting constituents with personal issues, such as housing requirements and writing letters of support

MP positions

May have minstrel or shadow positions

• Front bench MPs: with minstrel positions, who are spokes people for parties, so sit at front

• Back bench MPs: don’t have shadow or ministry positions, so sit on benches behind front branches

• Whips: MP appointed to organise party members with key responsibility to ensure MPs vote in line with party views

• Speaker of HOC: MP, elected in parliament to keep order, call MP to speak, chair debates and suspend house if serious disorder, breaks out and suspend MPs if disobey house rules

Making and shaping law

Bills become law through debate in HOC and HOL scrutiny by committees and Royal Assent

New laws in UK may be:

1. Proposed by gov in power as presented in their election manifesto, have mandate (authority) to implement them with voter support

2. Prompted by current events: new technology, acts of terror, or environmental issues

3. Prompted by issues covered in media or through work of pressure groups (groups of people seeking to influence gov policy or legislation)

The Law Making Process

1. Green paper: consultation stage

   • Proposed law from HOC or HOL discussed with experts, interested groups and senior civil servants to inform and shape the proposal

2. White paper

   • Bill that will be presented to two houses prepared after green paper consultation

Parliamentary ping-pong

Bill may go back-and-forth between houses until both agree

1. First reading

   • HOC: Bill is presented to house and made available to its members

   • HOL: Bill is presented to house and made available to its members

2. Second reading

   • HOC: Bill is debated in house

   • HOC: MPs may vote on bill at this stage

   • HOL: Bill is debated in house

   • HOL: No vote is taken

3. Committee stage

   • HOC: Committee is formed of 20 MPs

   • HOC: Scrutinise bill and vote on suggested amendments

   • HOL: Whole house will scrutinise bill and propose amendments

4. Report stage

   • HOC: Amended bill is presented to house

   • HOC: Those not involved at committee stage may propose changes

   • HOL: Amended bill is presented to house

   • HOL: Those not involved at committee stage may propose changes

5. Third Reading

   • HOC: MPs vote on fully amended bill

   • HOL: lords may still introduce new amendments

6. Royal ascent

   • After Lords and Commons agree bill

   • Formally approved by Monarch

   • Turns into legislation (law) when it becomes an Act of parliament

British Constitution

Democracy in UK works through 3 institutions of British Constitution:

1. HOC debates bills and passes laws

2. HOL scrutinises and amends bills

3. Monarch head of state formally approves new laws

The British Constitution

Defined laws, and political principles of UK

Clarifies relationship between citizens and political state

Key principle is of Parliamentary sovereignty: States parliament is legal authority, can make and change laws

Constitution consist of:

• Laws and legislation passed by parliament

• Conventions developed overtime

• Common law or law developed and decided by judges

Features of British Constitution

Institutions that make up British constitutions have functions within them

• Power of gov and role of opposition

• Power of Prime Minister, Cabinet, and role of civil service

• Roles of legislature and judiciary and of police

• Role of citizens, political parties and monarch

• Uncodified constitution

• Parliamentary sovereignty

Power of government

• Basis of power in constitution forms: main source of new legislation

• Power is derived from majority of seats held in HOC

• Comes from electorate who voted for gov

• Gov with large majorities have more power to pass legislation

• Prime Minister and Cabinet: most powerful in deciding direction of new legislation and work of individual gov departments with support of experts in Civil Service

• Political authority of state divided into legislative, executive and judicial powers to ensure laws applied consistently and fairly to UK citizens

Role of opposition

Opposition is made up of MPs from all political parties that are not in power

• Credible alternative to current gov in elections

• Monitors work of gov and challenges their policies

• Can make gov reverse unpopular policies

• Can suggest amendments to bills proposed by gov

• Can voice public’s views and concerns

Uncodified constitution

UK has uncodified constitution, evolved over 100s of years

Recent changes: result of devolution and UK’s relationship with EU

Uncodified constitution

UK Constitution is uncodified: from number of sources and has not been formally written down in one document

Reflect hundreds of years of laws from 4 UK nations

4 Main sources of British Constitution:

1. Legislation: laws passed by parliament

2. Conventions: practices which have developed overtime and regulate how gov is run

3. Common law or case law: when judges set precedent during court cases on how law should be interpreted and applied

4. European law: EU laws affect UK laws

Codified constitution

Codified constitution: single document which outlines way in which political state is governed

3 Main principles of codified constitution:

1. Authoritative: defines way political institutions operate

2. Entrenched: extremely difficult to amend or rescind a codified constitution

3. Judiciable: it’s a higher law that new laws have to be judged against, interpreted by and applied by judiciary

Uncodified constitution

Strengths

• Flexible allowing each new government to change legislation

• Constitutional changes (devolution) can be made

• Urgent legislation can be passed quickly in response to new issues in society

• Laws can be implemented, reflect changes in attitude in society (Equality Act 2010)

Weaknesses

• Citizens may not clearly understand constitution

• Easier for controversial laws to be passed or unpopular actions taken

• Law being subject to change, affect right citizens are entitled to British Bill of Rights vs Human Rights Act

Examples of how uncodified constitution is changing

Impact of devolution and membership of EU Union: how uncodified constitution can bring out major political change

Devolution

• Wales, Scotland, Northern Ireland now have right to legislate unevolved issues in each country

• Each has its own assembly

• Westminster Parliament can only legislate on reserved and excepted matters (only concern England)

EU membership

• EU law automatically incorporated into law of member states

Parliamentary sovereignty

• Most important part of UK Constitution

• Makes parliament supreme legal authority in UK

• Future parliament can make own laws and demand or remove any existing laws

• Gov must be drawn from MPs

• Parliament is held to account through oversight scrutiny and system of checks and balances operating with separation of powers

The European Union

• Some argue that belonging to EU infringes on Parliamentary sovereignty

• Some argue belonging to EU infringes on Parliamentary sovereignty as EU committees Act 1972: gives priority to EU law over laws of its member states

Role of judicial review

• Type of court proceeding

• Judge reviews lawfulness of decisions or actions taken by a public body, in central or local government

• If court defines decision, unlawful, it can impose injunctions on public body and may award damages

Reasons for reversing decisions through judicial review:

1. Ultra vires: Decisions made beyond legal power or authority of decision-maker, resulting in errors applying in law

2. Irrationality: If decision defies logic or acceptable moral standards

3. Procedural impropriety: Proper legal processes not been followed

4. Legitimate expectation: if person believed promises, or policies of public body that were not adhered to

Select committees

Operate in both houses

Role is to check and report back on the work of gov departments

Public can find their findings by reading reports published by parliament

Gov has to respond to issues raised by select committee

HOL select committee focus on:

• EU

• Science and technology

• Communications

• Constitution?

• Economic affairs

• International relations

HOC select committees:

• Examine work of gov department spending

• Policies and administration

• Current issues

• Allegations of improper behaviour made against individual MPs

Parliamentary inquiries

• Call to scrutinise work of government in specific area

• If government are seen to be at fault

• Recommendations included, parliamentary apologies and compensation

Devolution in the UK

Delegation of powers from central government at Westminster to national level following referendum, held in Wales, Scotland and Northern Ireland

• Led to creation of Welsh assembly

• Led to creation of Scottish Parliament

• Led to creation of Northern Ireland assembly

Devolution

Extent to which powers are involved reflects strength of referendum vote

Key argument for devolution:

• Local parliament or national assembly can better represent needs of citizens

• Each country will have measure of self government within UK

The Westminster Parliament

Although devolution taken place, UK Parliament votes on reserved matters for whole of UK as well as devolved issues of England

Reserved matters not devolved:

• Constitution: Financial/economic

• Foreign affairs: Immigration

• Defence: Drug control

• Civil service: Trade and industry

Scottish Parliament

Long history of independence and high local support for devolution

In referendum, 74% voted yes

Scottish elections

Voters in Scottish Parliament elections, have two votes to elect the 129 members of Scottish Parliament MSPs

• First vote: elect candidate using FPTP MSP represents each of 73 constituencies

• 56 MSPs then elected using PR, voters choose party or independent candidate for region 7 MSPs represent each of 8 regions

Welsh assembly

Originally held fewer devolved powers

Smaller country than Scotland, with less history of self governance

Referendum was close with 50.03% voting yes

Welsh devolved powers now similar to Scotland without Justice and policing, but including promotion of Welsh language

Northern Ireland assembly

Devolved power similar to Scotland but can vote on some reserved matters with agreement of Secretary of State

In period of assembly suspension, due to political disagreement, decisions revert to Westminster

English votes for English laws

Following devolution a process was introduced

Ensure that legislation effects only England is approved by majority of MPs

Changing relations

Scottish independence

• Devolution prompted calls for Scottish independence

• Referendum taken in 2014

• Extended voting franchise to 16-year-olds

• 55.3% voting not to leave

• Following UK’s referendum to leave EU: further calls for independence as majority of voters in Scotland 62% voted to remain in EU

Scottish independence 2014

For independence

• Decisions about Scotland should be made by Scottish citizens

• Scottish taxation, and spending would make them more successful country

• Scotland could focus on Scottish issues and priorities

• Scotland would not have to fight British wars or be home to Trident

• Scotland has aging population and could more easily encouraged economic migrants

• Scotland could still have good relationship with UK but unequal footing

Against independence

• UK has won wars built an empire and been successful union for 300 years

• A part of UK means part of EU and single market

• Businesses could move their established bases to somewhere else in UK, leading to loss of Scottish jobs due to new taxes and regulations

• Scotland would need to establish currency union to continue to use £

• UK is influential member of international organisations (NATO and UN) Scotland would be less influential

• Joint security across UK is better

Wales

• After initial establishment of Welsh assembly, 1998 power devolved further

• 2010 assembly organised referendum for further legislative powers for Wales

• 2011 Wales given new powers to legislate for all 20 evolved areas for Wales

• Devolved areas: culture, Welsh language, ancient monuments, all strengthen Welsh national identity

Northern Ireland

• Northern Ireland assembly: five periods of suspension when relations between different parties in Northern Ireland been strained

• During suspension power to legislate in Northern Ireland revert to Westminster

Direct and indirect taxes

Central government raises funds through direct and indirect taxes in order to finance public services

• Education

• NHS

• Defence

Direct taxes

Describes taxes, paid by person or organisation

Cannot be passed to anyone or ignored

Direct tax in UK:

• Income tax: tax on wages when you earn above certain amount

• Inheritance tax: tax and money left to you in a will when someone dies

• Corporation tax: percentage tax based on profits a business makes

• National insurance contributions: form of taxation based on income, originally to find welfare state contributions made when working now fund state pensions

• Council tax: tax paid annually based on value of property you live in collected by local authority

Indirect taxes

Taxes paid on goods and services

Indirect taxes in UK:

• VAT (value added tax): Tax on things you buy in UK currently charged at rate of 20% on most goods and services some items VAT free: children’s clothes

• Exercise duties: tax levied on items: alcohol or tobacco

Use of indirect taxes

• Advantages as they are cheaper to collect

• Penalised spending, rather than success can discourage spending on items harmful to health: Cost taxpayers money through NHS

Government revenue

Receipts predicted to be raised by taxation in financial year 2018-19

Total of around 769 billion

• Income tax £185 bil

• VAT £145 bil

• Business rates £30 bil

(HMRC) His Majesty’s Revenue and Customs

Non-ministerial government department responsible for:

• Collection of taxation

• Payment of some types of state support

• Administration of regulations: national minimum wage

• Investigating smuggling, fraud and tax evasion as a law enforcement agency, where punishment for tax evasion: imprisonment

The Chancellor of Exchequer

Role:

• budget for income

• Expenditure

• Debts

• Manage risks

• Make decisions about allocation of public funding

The Chancellor of Exchequer

• Gov chief financial minister

• One of the most important roles in cabinet

Key responsibilities:

1. Raising revenue for gov through taxation or borrowing

2. Controlling how gov revenue is spent

3. Leading treasury: ministerial department made up of junior and civil servants

4. Allocating expenditure limits for all other gov departments

The budget

• Allocate annual budget for a gov spending on public services

• Traditionally budget delivered in March as financial year starts in April

• 2018 annual budget delivered in October

• Budget speech delivered in HOC and carried in red briefcase

• Review of budget happened six months after its delivered: Looks at spending for next financial year

Public sector spending

Chart shows predicted spending on public services for financial year 2018-19

Total of £809 bil

Exceeds income predicted £769 bil

A gov cannot raise enough money through taxation needs to borrow money

Role of chancellor is balance

• Social protection £252 bil

• Health £155 bil

• Education £23 bil

Managing allocation of public funding

When gov income is less than government expenditure

Chancellor has to manage risks and make decisions about allocation of public funding

Can lead to period of austerity in government spending

Austerity: Economic term to describe how government will try to reduce its budget deficits (amount it needs to balance spending and income)

Common ways to reduce deficit: increased taxation and reduce spending through budget cuts

Budget and provision

Budget and provision priorities

• Each political party has ideas on how much provision should be made by gov

• How much citizen should provide themselves

• Prior to each election, political parties, identify budgetary plans if they win election

• Some parties tax rich, some increase VAT, some cut gov spending

• Gov agree on importance of defence spending

• Some debate about spending on nuclear weapons

Health

• NHS offers free healthcare for citizens, but increased demand putting it under pressure

Key debates:

1. People who can afford private healthcare should pay for services

2. People with self-inflicted illnesses should help themselves

3. Wider solutions found for adult social care and aging population

4. NHS should remain free as public demand with increased funding

Welfare

• Government provides benefits for those who can’t find work or unfit to work

Key debates for and against welfare:

For:

• Benefits provide safety net

• Fit people need to look after disabled, elderly and ill people in society

Against:

• Benefits system open to abuse and some commit benefit fraud

• Something benefits cost too much and create cycle of poverty and dependency (more is spent on pensions and those not paid appropriately)

Education

Well educated population provides innovation and entrepreneurial skills for future workforce

Key debates:

• Impacts of cutting budget, increasing class sizes and limiting school resources

• Cost of university may be deterring poor people from studying for a degree

• Students who can afford to go private school often better outcomes

• Grammar school create selective system often based on parental resources

Care of elderly

Increasing the aging population

Key debates:

• Taking personal responsibility for old age through savings and pensions

• Families caring for elderly relatives

• Increasing tax to cover increased costs

• Considering new ways NHS and care in community can work together

Charities

Key debate concerns: how far citizens can work themselves out of poverty and role of charities with vulnerable citizens through:

• homeless shelters and soup kitchens

• Food banks for those living in poverty

• Phone support for aged and those with mental health issues

• Free legal advice and depth guidance