1. Hopping Mad! The Chancellor’s Lesson

2. Objective To balance the public finances whilst keeping the party’s approval rating positive Starter Can you think of all the major things that the Government needs to spend money on? What is tax? How many different types of tax can you think of? What’s an approval rating? Why is it important?

3. The Chancellor needs more money to run the country. She has 5 options to raise money, shown on the next slide. Can you arrange them in order from most important to least important, in your opinion?

4. Raise taxes on the super rich Money: +£10 billion Approval Rating: +3 One-off?: No This will generate a lot of money, but if you tax the super rich too much they might leave the country – and take their businesses with them. Raise taxes on everyone Money: +£20 billion Approval Rating: -5 One-off?: No Raising taxes generally creates more revenue, but is very unpopular. Sell our parks and national buildings Money: +£25 billion Approval Rating: -10 One-off: Yes Once they are gone they are gone – but the country needs money. Is it worth it? Cut spending on health and education Money: +£45 billion Approval Rating: -20 One-off: Yes Cutting spending on these areas by 20% raises a lot of cash, but it won’t be possible to do it again. Make everyone pay a one-off mobile phone tax Money: +£30 billion Approval Rating: -20 One-off: Yes Want to text your mates? Well it just got a whole lot more expensive.

5. DEFENCE Spend: £46 billion Decrease: -3 AR Increase: +1 AR EDUCATION Spend: £98 billion Decrease: -5 AR Increase: +2 AR TRANSPORT Spend: £19 billion Decrease: -3 AR Increase: +1 AR HEALTH Spend: £126 billion Decrease: -10 AR Increase: +6 AR WELFARE & PENSIONS Spend: £255 billion Decrease: +7 AR Increase: +2 AR AR = Approval Rating The Budget £544 billion (without raising taxes) You need to find £50 billion to fund a space hopper for every person in the country. Use the costs below to do this – and remember, if you don’t increase spending on anything, then your approval rating will go down by -5. AR goes up if you decrease and if you increase welfare and pensions – why is this? TAX INCREASE Raises: £20 billion AR: -12

6. Group Work Please discuss the following with a partner / group. Did you find £50 billion to buy everyone in the country a space hopper? What is your approval rating? Is it positive? What did you sacrifice, and do you think these are the same choices that the Government would make?