Government spending and taxation - An interactive guide

At GCSE, pupils are required to know the main areas of government spending and be able to identify the sources of government revenue. This interactive guide is perfect to introduce the subject. I have also written a number of GCSE exam style questions to go along with the guide for revision.

State the three main areas of government spending in the UK using the interactive guide. (3 marks)

Explain the difference between a direct and an indirect tax using examples (6 marks)

Suggest why the recession has caused social spending to increase by 12% and income tax revenue to decrease by 12%. (4 marks)

The budget requires the government to borrow, increasing the UK’s budget deficit. Explain the term budget deficit. (3 marks)

Explain two possible ways of reducing a budget deficit. (4 marks)