Transcript Funding of Social Policy - Westminster Kingsway College

Funding of Social Policy
Welfare, who pays and how.
PUBLIC
BORROWING
TAXATION (main
source of funding)
CENTRAL
GOVERNMENT
FEES AND
CHARGES
NATIONAL
INSURANCE
TAXATION (main
source of funding)
DIRECT
TAXATION
INCOME TAX
(Progressive
tax) PAYE
system
CORPORATION
TAX / CAPITAL
GAINS / PROPERTY
/ INHERITANCE
INDIRECT TAX
Liberal Gov
1905 first used
tax for welfare
provision. Wars.
CUSTOMS
AND EXCISE /
V.A.T / CAR
EFFECTS LOWER
INCOMES
(Alcohol, Tobacco)
NATIONAL
INSURANCE
Linked to earnings
Compulsory for
workers, employers,
governments. Pays for
welfare benefits.
Proposals of
Beveridge Report
NI Act 1946 1948
PUBLIC
BORROWING
ISSUE BONDS /
TREASUARY BILLS
(Using the public as
a bank)
OTHER
COUNTRIES /
WORLD BANK
NATIONAL
DEBT
Approaches to the economy:
Keynesian Economics (spend your way out of it, multiply
rule), Monetarist (get money by increasing tax and
interest rates) Blair was third way because he
deregulated (giving power to The Bank of England to set
interest rates and allowed investment banks and retail
section of their business to merge AND he increased
public spending (Keynesian)
The first priority for the Thatcher Government
in 1979 was the economy and the enterprise
culture. Changes were proposed to decrease
direct taxation (i.e. income tax) and increase
indirect taxation (i.e. VAT). The Government
also began a policy of privatisation and
proposed to sell-off council houses to their
tenants. A prime objective was to reduce the
inflation rate which had peaked briefly over a
three month period in 1976 at the equivalent
rate of 27% per annum. It seemed the
Government was keen to reduce the power of
Local Authorities, which were often Labour,
increase the power of central government.
There is no such thing as society. There are
individual men and women, and there are
families. And no government can do anything
except through people, and people must look
after themselves first. It is our duty to look
after ourselves and then to look after our
neighbour. (M. Thatcher, Woman’s Own,
October 31, 1987)
IN PAIRS TAKE 15 MINUTES TO ANSWER THIS
QUESTION:
WHO DO YOU THINK SPENT MORE ON SOCIAL
POLICY DURING THEIR TIME AS P.M, THATCHER
(NEW RIGHT) OR BLAIR (THIRD WAY) AND
WHY?
WELFARE, EDUCATION, HEALTHCARE, MILITARY,
ROADS, WORK AND PENSIONS, FOREIGN
AFFAIRS, CHARITY, JUSTICE