Economics Report on Budget


Length: 2854 words (8.2 double-spaced pages)
Rating: Excellent
Open Document
Need writing help? Check your paper »

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Text Preview

More ↓
Economics Report on Budget


Introduction

The aim of this report is to find out how budget 2003 has affected
different groups of people. Has the budget benefited the UK? Does the
majority of the UK know about budget? In this report I will find out
the answers to these questions and produce a clear conclusion
outlining the main factors included in budget 2003 and if it was a
success or not.

In this report I have to find out if budget 2003 benefited everyone or
not. I will need to gather information from different angles to find
if budget had an affect on the citizens of Britain.

To complete my report I will under go primary and secondary research
to find out as much as I can to find out about last years budget. I
will apprehend research such as questionnaires, interviews, textbooks
etc. My research will be limited as I cannot go through vast amounts
of data such as economic journals, surveys and focus groups which are
beyond my reach and so my conclusion will present limited amount of
data.

This report will be structured in a way that you will be able to
follow it with simple economic jargon. In the beginning I will present
information on budget and have an understanding of it thoroughly to
show you that I have understood the concept of a budget. I will give
you data on the information I have collected from both primary and
secondary information and conclude what I have found from the results.
Using my research I expect to test the following hypotheses:

-"I expect people to consume fewer cigarettes because the tax has
increased by 8p".

-"I expect the consumption of beer to fall because the tax has risen
by 1p".

-"I expect people to consume less amounts of wine as it has risen by
4p".

-"I expect people to use public transport more as the excise duties
for road tax has increased by £5".

-"I expect people to be employed as more jobs have been created.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

How to Cite this Page

MLA Citation:
"Economics Report on Budget." 123HelpMe.com. 11 Dec 2017
    <http://www.123HelpMe.com/view.asp?id=147785>.
Title Length Color Rating  
Essay on Budget Deficit, Fiscal Stimuli and the Economic Recovery - Budget deficit, fiscal stimuli and the economic recovery Post budget debate is heating around the points if the economy is heading in the right direction and government has the capacity to deal with major economic challenges. It is true that the economy of Pakistan is passing through a critical stage and major road blockers to growth seem to be increasing unemployment rate, inflation rate, incidents of terrorism as a consequence falling foreign and local investment levels, and power shortage. Adding to the injury, the country is included in the list of top 5 most unstable countries, along with Iraq and Afghanistan, of the world....   [tags: Economics] 1100 words
(3.1 pages)
Strong Essays [preview]
GFC Report Essay - In accordance with ‘Australia in the Global Economy’, economic growth is defined as a sustained increase in a country’s productive capacity over time. This is commonly measured by the percentage increase in real Gross Domestic Product (GDP). Economic growth is measured using one particular equation: Real GDP (current year) - real GDP (previous year) x 100 Real GDP (previous year) 1 Economic Growth = Up until the GFC, Australia had held a relatively stable level of economic growth hovering around 3.5%....   [tags: Economics ]
:: 2 Works Cited
1177 words
(3.4 pages)
Strong Essays [preview]
Essay about Economics of Crime: Capital Punishment - Introduction Capital punishment was an ancient penalty. This has incurred many argues since 18th century. The focal points are ‘value of life’ and ethical concerns. Besides, the economics analysis also is important, which focuses on the effects and efficiency of capital punishment. In the article, the anterior part indicates the supporting reasons of death penalty, the posterior part indicates the cons. Support Reason Deterrence of punishment Becker (1968), first of all, assumes that the crime is bad which incurs social loss, it should be deterred, death penalty is the severest punishment, and potential criminals are normal individuals....   [tags: Capital Punishment, Death Penalty]
:: 6 Works Cited
1843 words
(5.3 pages)
Term Papers [preview]
The Economics Of The Clean Air Act Essay - "The health effects of air pollution imperil human lives. This fact is well-documented." -- Eddie Bernice Johnson Air is a part of all of our lives. Without clean air, nothing we know of can exist. The debate over clean air, it's regulations, their teammates and opposition, and the economic factors coming into play into this ever-more recognizable problem is a widespread and ever more controversial one. Like a long countdown to eventual disaster, the pollution effecting our world has no doubt made increasingly more impact on our daily lives, and has increased the intensity on Washington and other countries to solve the problem....   [tags: Impact of Clean Air Act on Economy] 1322 words
(3.8 pages)
Strong Essays [preview]
Identifying Facts and Trends for SBE 'Digi-Wave' Essay - A business has to act and react to what happens inside and outside of the company. Businesses exist within an external environment. This external environment is concerned with consumption and production. Economics is one of the main factors which is related to costs and prices of goods. What consumers want and need income, interest rates, exchange rates and rate of inflation (Sloman &Boer, 2009). This report undertakes secondary research to identify facts and trends for our SBE named as ‘Digi-wave’....   [tags: Economics]
:: 4 Works Cited
746 words
(2.1 pages)
Better Essays [preview]
Is a Common Currency in Europe Sustainable? Essay - The continued existence of the Eurozone is in question, as demanded bond yields in Italy and Greece ascend to new heights, and governments are unable to budget their future outlays. Austerity is often proposed as a means to allow these troubled governments to pay back their debts in the future, but many question whether it can truly lead to growth. The breakup of the Eurozone, while very possible, threatens to spread financial instability to other European nations and even the United States. Originally designed to ensure financial stability, the common currency area appears to restrain policymakers both fiscally and monetarily in these times of economic depression when they might benefit mos...   [tags: Economics]
:: 8 Works Cited
1705 words
(4.9 pages)
Term Papers [preview]
Oil Prices and Economic Growth Essay - From the middle of twentieth century, due to exceptional importance of the crude oil in the supply of the world's energy demands, it has become one of the major indicators of economic activities of the world. Even after the appearance of alternate forms of energy like solar power, water and wind, the importance of crude oil as the main source of energy still cannot be denied. This sharp increase in the world oil prices and the volatile exchange rates are generally regarded as the factors of discouraging economic growth....   [tags: Economics ] 1241 words
(3.5 pages)
Strong Essays [preview]
Oil Prices and Economic Growth Essay - From the middle of twentieth century, due to exceptional importance of the crude oil in the supply of the world's energy demands, it has become one of the major indicators of economic activities of the world. Even after the appearance of alternate forms of energy like solar power, water and wind, the importance of crude oil as the main source of energy still cannot be denied. This sharp increase in the world oil prices and the volatile exchange rates are generally regarded as the factors of discouraging economic growth....   [tags: Economics ] 1241 words
(3.5 pages)
Strong Essays [preview]
Essay about Macroeconomics Coursework - It is the role of every government to safeguard its people in all matters including controlling the economy. Every economy faces different challenges including the business cycles that may emanate from the global market. In this paper we try to examine measures taken by the UK’s coalition government in trying to ensure that the economy benefits every citizen and reduces the overall burden to it. We consider the recent comprehensive review on spending. Many countries in the world have been suffering a recession in their economies and UK has not been an exception....   [tags: Economics]
:: 8 Works Cited
2033 words
(5.8 pages)
Strong Essays [preview]
Business Report: Sunrise Resorts Essay - Sunrise Resorts is a nationwide chain of resorts, with 35 branches all over India. They provide a whole gamut of hospitality services including Weekend Getaways, Spiritual Retreats, Long Holidays, Group Outings and Adventure Trips to customers. The company aspires to reach out to a whole new segment of potential customers by marketing itself effectively over the internet. With the shift in the demography of the country, there is also a significant change in the company's clientele. Rising levels of disposable income with the Indian middle class, increased penetration of the internet throughout India, easy availability of credit cards and the low cost airlines boom are factors which are contr...   [tags: Hotel, Industry, Economics, Case Study, solution] 1059 words
(3 pages)
Strong Essays [preview]

Related Searches




"

Background information

I have found some history on budget from the internet and tell you how
budget came along.

"Budget history

The origins of the Budget go back to the Norman period, where two
departments dealt with finance. The first, the Treasury, receive and
paid out money on behalf of the monarch. The second, the Exchequer,
had a 'lower office' which received money, and an 'upper office',
concerned with regulating the Kings accounts.

The word Exchequer comes from the Latin 'scaccarium', which means
chessboard. The name was given to the court because counters were
moved on a square table. The word 'budget' comes from an old French
word 'bougette

'Which means little bag.

Budget box

The original budget box is thought to have been made for Mr Gladstone,
around 1860, and is known as the 'Gladstonebox'. It is a wooden box,
lined in black and covered in scarlet leather.

In 1965, Lord Callaghan broke with tradition and used a newer box, but
later chancellors reverted back to the Gladstonebox. In July 1997, the
current Chancellor, Gordon Brown, used a new box for his Budget
speech. He used a box made of yellow pine, with a brass handle and
lock, covered in scarlet leather.

Budget speech

The historical list of British Chancellors is available on the history
of tax page.

Nigel Lawson has been so far the longest serving Chancellor since the
war. The longest serving Chancellor this century was Lloyd George who
was in office for a total of seven years and two months between 1908
and 1915. In the nineteenth century, W E Gladstonewas Chancellor for a
total of 12 years and four months between 1852 and 1882".

From taxcentral.com

"The budget is the annual estimate of the income and expenditure of
the government for the coming financial year. In it, the Chancellor of
the Exchequer provides details of the government's spending plans and
how it intends to finance those spending plans".

www.bized.ac.uk

This money is used in many sectors of the public sector such as NHS,
defence, education etc. Budget is used for the whole of the country.
They receive this revenue and spend it for the benefit of the country.
It increases the economy's growth and makes it more efficient.

Here is what happened in Budget 2003:

Taxes

* Beer up 1p

* Wine up 4p a bottle

* Cider and sparkling wine tax frozen

* Spirits tax frozen

* 8p on a packet of cigarettes

* Bingo tax to be abolished on 4 August

* Income tax stays the same

* Inheritance tax - tax threshold up to £255 000

* Stamp duty frozen and a crackdown on stamp duty tax evasion

* Vehicle excise duty goes up by £5 on cars in May but stays on hold
for lorries and motorbikes

Employment

* 25 000 more doctors, 88 000 more nurses by 2008, funded by the
National Insurance increase

* Britain's unemployment is lower than the total in Japan and Euro
zone and the lowest in the UK for a generation

[IMAGE]

[IMAGE]

[IMAGE]

* Government will make £170m to help people to upgrade their skills
and move up the employment ladder

* Where there are skills shortages new measures will be introduced
to attract people from abroad with the appropriate training

* Lone parents looking for work to get an extra £20 a week to help
with their job search

Pensioners

* Pension reduction during hospital stays abolished from today

* An extra annual payment of £100 to pensioners over 80, on top of
the existing £200 winter fuel payment.

* All single pensioners with income below £139 a week and all
couples below £203 a week will benefit from the new Pension
Credit.

www.bbc.co.uk

Research

From the primary research I have found a lot of information. For
instance many people I gave questionnaires to spend £20-30 in weekly
expenditure. Many people spend a lot of money on cigarettes, wine and
beer even though the tax has gone up. A lot of people use public
services and the most they use is NHS. Most people think that last
year's budget did not benefit them and rated it bad overall.

I could not find information from secondary research as there was
insufficient amount of data available to me that I can use in this
report. However I can state that the government wanted Britain to
benefit from this budget. This can be seen from the text below:

"The Government's objective is to deliver high and stable levels of
growth and employment, with opportunity and rising living standards
for all - a Britainof economic strength and social justice. Against a
backdrop of global uncertainty, Budget 2003 describes how the
Government is seeking to meet the long-term challenges of
globalisation, achieving both flexibility and fairness together.

Budget 2003, Building a Britain of economic strength and social
justice, presents updated assessments and forecasts of the economy and
the public finances, reports on how the Government's policies are
helping to deliver its long-term goals and describes the further steps
that the Government is now taking to advance its goals".

www.bized.ac.uk

The advantages of using primary research such as questionnaires is
that you can get an accurate results as you are getting first hand
information were people's opinion is realised and used. It also gives
us a rough estimate of what people would think in a particular area or
country. For instance you can give out 50 questionnaires and say that
a whole country thinks this which is merely an estimate. The
disadvantages of using primary research is that we do not take into
consideration that we are getting this information from human beings
which can make mistakes such as being silly and unsociable which
causes us to get anomalies in our results.

The advantages of using secondary research are that we can get the
information very easily and efficiently. We don't have to go and get
the research we can get it from our textbooks and the internet etc.
The disadvantage of using secondary information is that the
information can be dated far back or even false as an opinion and not
a fact.

I have used questionnaires as a primary source of research because you
can get direct and honest answers easily. Using questionnaires means
you can get the exact answers you want for the information you are
looking for. I am also using interview questions to get a direct
opinion from a citizen.

Theory

"The budget is the annual estimate of the income and expenditure of
the government for the coming financial year".

www.bized.ac.uk

Mostly every person in the world is to pay tax sometime in their life
but there is a reason for this. The total money given to the
government by tax and use it for expenditure is called budget. The
government uses the budget for many reasons:

- Firstly the money raised by taxes for public expenditure can make
the country more developed and can attract people across the world of
that country. It also raises the GDP as the development can lead to
employment.

- Secondly by using a budget it affects economic behaviour and helps
the country to develop for the better and hence improve the economy.
For example taxes on cigarettes can discourage people to smoke and
taxes on petrol can discourage people to be more economised on fuel.

- Thirdly the government uses a budget to redistribute income between
different individuals and between different sectors of the economy to
keep it controlled and balanced.

- Lastly to sum everything up a government uses a budget to develop
and improve the country's economy. They can then compete with other
economies of the world and so to increases the quality of living for
the citizens of that country.

In this section of theory I will go over what fiscal policies can the
chancellor of exchequer take.

-Fiscal policy -Expansionary policy

-Contractionary fiscal policy

Fiscal Policy

Fiscal policy is the government's policy with regard to public
expenditure, taxation and borrowing. This is used to manage Aggregate
Demand which is calculated by adding all of the individual demand
curves in the economy. Expansionary fiscal policy is the government
reducing tax and increasing expenditure. This means that AD will
increase causing the demand curve to shift to the right. As AD
increases unemployment will fall as the government is spending more on
the economy such as NHS, defence education etc which will cause them
to employ more people as the firms know that tax has gone down and
more people will buy goods and services. The economy will grow and
become more efficient because national income will rise as an increase
in spending will increase. Inflation will increase because higher
demand will allow firms to push up prices. The standard of living will
increase.

[IMAGE]


In Contractionary fiscal policy, the government will increase tax and
reduce expenditure. This means that AD would decrease causing
unemployment to rise, low economic growth, decrease in inflation and
lower standard of living. Contractionary fiscal policy is basically
the opposite of Expansionary fiscal policy.

[IMAGE]


However in order for the government to manage the economy well and
efficiently it needs to take into consideration other policies than
fiscal policy. Fiscal policy used in isolation may not give the
desired result for the government. In order to overcome this problem
the government needs to consider another policy and that Is Monetary
policy.

Analysis

-"I expect people to consume fewer cigarettes because the tax has
increased by 8p".

[IMAGE]Fig 1

Do you smoke? If yes how many packets a week?

[IMAGE]Fig 2

From the results I have found out that a lot of people that I gave
questionnaires to spend over £20 on cigarettes (see fig 1). The other
questions I gave out told me that most people consume mainly 4-5
packets a week (see fig 2). This tells us that people still smoke a
lot. The people who gain from this is the government as they have
increased tax on cigarettes the number of people who still smoke is
very high meaning that the people who smoke do not care about the
price increase so they still buy it. As the numbers are high the
government are getting more revenue this way so they gain from this.
The people who do not gain are the people who smoke as they are
spending more on smoking for them is a necessity or addictive for
them. As the tax has gone up people who are addicted to smoking would
steal money to buy the cigarettes. The society would turn for the
worse as crime level will increase from this.

-"I expect the consumption of beer to fall because the tax has risen
by 1p".

[IMAGE]Fig 3

Do you drink? If so how many pints or bottles do you drink a week?

[IMAGE]Fig 4

From the results I have found out that a lot of people I gave
questionnaires to spend over £20 on beer (see fig 3). The other
questions I gave out told me that most people consume mainly 3-4 pints
a week (see fig 4). This tells us that people still drink a lot of
beer even though the tax has risen. The people who gain from this is
the government as they have increased tax on beer the number of people
who still drink is very high meaning that the people who drink do not
care about the price increase so they still buy it. As the numbers are
high the government are getting more revenue this way so they gain
from this. The people who do not gain are the people who drink as they
are spending more as drinking alcohol for them is a necessity. As the
tax has gone up people would steal money to buy the beer. The society
would turn for the worse as crime level will increase from this.

-"I expect people to consume less amounts of wine as it has risen by
4p".

[IMAGE]Fig 5

Do you drink wine? If so how many bottles do you drink a month?

[IMAGE]Fig 6

From the results I have found out that a lot of people I gave
questionnaires to spend over £20 on wine (see fig 5). The other
questions I gave out told me that most people consume mainly 1-2 pints
a week (see fig 6). This tells us that a lot of people do not drink
much wine because of tax and that it is only used for rare occasions.
The number of people who drink wine is low which would have been the
cause of the tax. The people who gain from this is still the
government as when they buy the wine which is generally more expensive
then beer and are used for special occasions they still pay the extra
amount. The number of people would have been low anyway because of the
usage of the wine.

-"I expect people to use public transport more as the excise duties
for road tax has increased by £5".

[IMAGE]Fig 7

Do you drive? If so what level of road tax do you pay?

[IMAGE]Fig 8

[IMAGE]Fig 9

From the results I have found out that a lot of people I gave
questionnaires to spend over £20 on petrol (see fig 7). The other
questions I gave out told me that most people pay a high level of
insurance (see fig 8). The people who gain from this is the government
as they are getting a lot of revenue as a lot of people are spending a
lot of money on petrol so they have high levels of insurance but the
other data shows us that most people use public transport meaning they
have presumably started to use public transport. The people who gain
are the citizens of Britain as they have reduced pollution.

-"I expect people to be employed as more jobs have been created."

[IMAGE]Fig 10

Are you employed?

[IMAGE]Fig 11

From the results I have found out that a lot of people I gave
questionnaires to are employed. The other questions I gave out told me
the same thing that a lot of people are employed and few are not and 1
is looking for work. The people who gain from this are the firms and
the NHS who are getting more workers to work which increases their
output. The consumers benefit from this as the services will be of
better quality and more efficient. The government will also benefit
from this increase of employment as they will get more revenue from
the firms and will decrease the amount of money given out from DSS
benefits. No-one will lose out from this employment increase only
gain.

"The number of jobs in public administration, education and health in
the United Kingdom increased by 163,000 (2.4 per cent) during 2002.
There was also a large increase in distribution, hotels and
restaurants (105,000 or 1.5 per cent)".

www.ons.gov.uk

Conclusion

In conclusion, I can say yes, some people did benefit from budget
2003, but of course there were people who lost out. Such as the people
who drink alcohol, smoke cigarettes and drink wine which the tax had
been raised and there were many who benefited. From my research for
budget 2003 I found out many things that have affected from it. Many
people I gave questionnaires to did not know what budget was and so I
am predicting most of the UK does not know what it is. Most people
receive over £20,000 income. They spend approximately between £20-30
in weekly expenditure. The main findings were that a lot of people
spend a lot on beer, wine, petrol and cigarettes as it is addictive
for them and so the government gains from this with the extra revenue.
A lot of people use public services mostly NHS. Most people that I
gave questionnaires to say that the amount of tax they pay is too high
and they have rated it bad overall.

"What do you rate the budget of 2003?"

[IMAGE]

Evaluation

From the research I have discovered that my first expectation was
wrong. The reason for this is that though I expected people to smoke
fewer cigarettes from before as the tax has gone up by 8p, they still
buy a lot of packets due to it being addictive for them and they have
to buy them. Same goes for my other second expectation as I presumed
that people will consume less amounts of beer when they still drink a
lot of it. The reason they still drink it as it has become a necessity
or addictive for them. My third expectation was that I thought that
people would cut down in drinking wine and it was right as people have
cut down but a little bit as they do not drink a lot of wine in this
first place due to it being for special occasions. My fourth
expectation was that I thought people would cut down in driving as the
road tax has increased by £5 and so my expectation was right as a lot
of people use public transportation. These results are limited as they
present little information on a small number of people. I could have
improved my report by giving more precise questions and giving out a
larger number of questionnaires out and using other methods of primary
research such as focus groups and surveys. I also could have gone
through more material to get wider knowledge of budget 2003 for
instance I could have used economic journals firstly and newspapers
which dated back to 2003. I could also have given the questionnaires
to different backgrounds and different parts of the country. I did not
use all of the question's answers in the questionnaires as they were
irrelevant to my report.

Recommendations

I recommend that the government to try to fade unemployment away as
this helps the society and economy. I also recommend that the
government should increase tax on alcohol, cigarettes and vehicle
excise duties so that the people who smoke and drink are aware of the
tax and so drivers can decrease pollution which will make society or
even Britain a good place to live. However if this was to happen the
revenue that the government receives from cigarettes etc will decrease
and so there will be an increase in other areas which will mean that
we will loose out. Lastly I recommend that the government should keep
up the congestion charges in central London which has made people more
economical.

Appendices

Appendix-1

Questionnaire on Budget 2003:

Q1) Do you smoke? If so how many packets a week?

[IMAGE][IMAGE][IMAGE][IMAGE][IMAGE]1 2 3 4 5+

Q2) Do you drink? If so how many pints/bottles a week?

[IMAGE][IMAGE][IMAGE][IMAGE][IMAGE]1 2 3 4 5+

Q3) Do you drink wine? If so how many bottles a month?

[IMAGE][IMAGE][IMAGE][IMAGE][IMAGE]1 2 3 4 5+

Q4) Do you drive? If so what level of insurance do you pay?

[IMAGE][IMAGE]High Low

Q5) Are you employed?

[IMAGE][IMAGE][IMAGE]Yes No Looking

Appendix 3

1 Do you know what budget is and do you think everyone benefits from
it?

[IMAGE]


2 Do you think the government discriminates anyone in budget?

[IMAGE]


3 How do you feel about the number of taxes impinged upon the citizens
of the UK?

[IMAGE]


4 Do you think the money which is received by taxes good for improving
the UK or should we leave the improvement?

[IMAGE]


5 How do you feel when government increases tax?

[IMAGE]


Appendix 4

1 Do you know what budget is and do you think everyone benefits from
it?

[IMAGE]


2 Do you think the government discriminates anyone in budget?

[IMAGE]


3 How do you feel about the number of taxes impinged upon the citizens
of the UK?

[IMAGE]


4 Do you think the money which is received by taxes good for improving
the UK or should we leave the improvement?

[IMAGE]


5 How do you feel when government increases tax?

Bibliography

1) Internet www.bbc.co.uk, www.bized.ac.uk, www.taxcentral.com,
www.ons.gov.uk

2) People of Ilford-questionnaires

3) "Economics for GCSE"-Alain Anderton

4) Class notes

5) Newspapers

6) Budget pack


Return to 123HelpMe.com