Hello, my name Mrs. Tomassi, and I'm gonna be working with you on your citizenship lesson today.

If you've got everything that you need and you are all good to go, then we'll get started.

So today's lesson title is, "How Does Taxation Support the Growth of the Local Economy?" And this forms part of the unit on how does the local economy support sustainability.

So hopefully, by the end of today's lesson, you'll be able to explain how local taxation helps the local economy and how levelling up has supported local businesses.

There are four key words in today's lesson.

You'll see them in bold throughout, so if you ever need to refer back to them because there might be some terms that you haven't heard of before, you'll always find them here.

So local taxation is the way in which the local government finances some of its local spending by imposing charges on citizens and corporations.

Regeneration is the process of improving and revitalising urban or rural areas through investment to boost the local economy and community wellbeing.

We then have regional devolution, which is the transfer of some powers from the government to local authorities in different geographical areas across the UK.

And the fourth and final keyword is Levelling Up agenda or levelling up, you might see it as in the lesson as well, and this is a UK government initiative aimed at reducing regional inequalities by investing in infrastructure, skills, businesses, and community.

As I said, there's a lot there to take in.

So if you ever need to, they'll be in bold and you can refer back to them here.

So there's two learning cycles today, and our first one we're gonna go through now is how does local taxation help the local economy? So local taxation plays a crucial role in funding essential services and infrastructure that directly benefit communities.

In the UK, two primary forms of local taxation are council tax and business rates.

Now you might have heard of some of these before, but we'll go through them just in case.

So council tax is charged on residential properties.

So these are people's like homes that they live in.

It helps to contribute to services such as waste collection, public libraries, and social care.

And it pays towards a lot of other services that are provided by local areas as well.

You then have business rates.

Now business rates are charged on non-domestic properties.

So these are places that, again, are probably businesses, so things like shops, offices, and they help to fund local services like road maintenance, policing, street lighting, and et cetera.

So both council tax and business rates make sure that the local government have the resources to maintain and improve the facilities there.

It helps to make the area more attractive for both residents and businesses.

And again, hopefully, the idea is that if it looks better, et cetera, then more people will invest and then it'll help to boost the local economy.

So check for understanding now.

Which local tax? Arrange the words in the correct local tax category.

So you've got two categories, council tax and business rates.

And then some of the words that you need to arrange are non-domestic, residential, houses, shops, offices, public libraries.

Which goes under which? How did you get on? So council tax is residential, houses, and public libraries.

Business rates is non-domestic, shops, and offices.

So the revenue that's generated from local taxation.

Now when we talk about revenue, we're talking about like the amount of money that's been generated is reinvested into the community.

Now, this encourages economic growth.

'Cause when we are thinking about the economy, it's this idea of a cycle.

So the more that's going in, the more that's pumping out, the better it's getting.

So the more revenue that goes in, the more can be reinvested and it can help to improve it and just strengthen it more and more.

So to give you an example, funds can be allocated to regenerate like high streets, support local markets, enhance public transport, all of which is gonna help to encourage more people into the local area.

So a good example is the High Streets Heritage Action Zone programme.

It invested 103 million pound between 2020 and 2024 to revive 67 high streets across the UK.

Now, examples included Harlesden, Bedford, and Woolwich, and it helped to restore 571 historic buildings and created over 700 jobs by March, 2024, which meant it helped to significantly boost local economies.

These improvements not only created employment but also attract visitors and investors.

This reinforces the strength of the local economies.

So again, going back to that idea, the more you put in, the more you are getting out of it.

So small businesses are crucial to the local economy and local taxation because they provide essential support through grants, training programmes, and affordable workspaces.

Many local councils use business rates to create small business relief programmes, which make it easier for new enterprises to establish them themselves.

So it might be a case that they can get reduced rates or they can get some support to help them get up and running.

To give you an example, in Liverpool, reductions in business rates have encouraged local entrepreneurs to invest in new start-ups and it's led to an increase in independent retailers and cafes which continue to the, which can contribute to the areas unique character.

And again, that regeneration, you've got that idea of the cycle there, yeah? And you've got the image there that shows that it's starting and it's helping to support that bigger growth.

And the cycle keeps money circulating locally and reduces the unemployment rates.

So it's all benefiting the local economy.

Another example of a national scheme is the Retail, Hospitality and Leisure Relief, so the RHLR, which has provided significant discounts on business rates to eligible businesses, including those in Liverpool.

To give you an example, it offered a 75% discount on business rates for the 2023/24, and it capped at 110,000 pound, to support businesses recovering from the COVID-19 pandemic lockdowns.

So again, it's this idea to help people get back on their feet and get running again.

Now, local taxations and funds allocated for businesses feature heavily in election manifestos.

Do you know what an election manifesto is? So this is when candidates have these ideas of their promises of what they would like to achieve or the policies that they would like to see put in place if they were elected.

Now business owners will vote accordingly to this on things like business rates, corporation tax, and allowances given to small businesses.

So check for understanding now.

These statements are all incorrect.

Correct the mistakes to write three correct statements.

You've got business rates help residents pay for waste collection.

Local taxation does not help small businesses.

And regeneration products do not create jobs.

So can you make them all correct? So how did you get on? So business rates fund local services like street lighting.

Small business relief programmes are funding through business rates.

And regeneration products create jobs and boost the economy.

Hopefully you manage to get something similar to that.

So another important part is that education and skills development is supported by local taxation.

It ensures work pace meets regional economic needs.

So it's this idea that making sure the people in the areas have the skills that they need for the jobs.

So this is done by funding apprenticeships and vocational training.

Now local governments can reduce skill shortages and increase employment opportunities by offering these programmes.

To give you an example, in July, 2024, the West Midlands Mayor, Richard Parker, developed a digital and technology skill programme to tackle youth unemployment.

By January, 2025, over 43,000 people had been given crucial job training.

A skilled workforce attracts more businesses, increases local tax revenue, and boosts the economy.

So this shows you what can be done and what could be put in place.

Next we're gonna look at metro mayors.

Now you might have heard of a mayor before, but a metro mayor is somebody that's directly elected as a leader over a local authority or region.

So these authorities work together to gather resources and powers to function more effectively on issues, so things like skills or transport.

They look at the issues in the local economy and then they'll go, "Right, how can this local taxation be spent and what can it do to support these local areas?" So there are some differences between the role of a mayor and a metro mayor.

Mayors would lead a single local council area and they might focus on local services.

So like housing, waste collection.

The powers would vary as well.

And they might or might not be elected for a specific local area.

Whereas a metro mayor is specifically elected by a wide combined authority, a local authority.

So these are made up of lots of different areas.

To give you an example, like all the London boroughs would vote for the mayor of London.

And what they're in charge of is more broader regional issues like transport, economic development, and they have got some powers devolved from central government.

So this is where we talk about regional devolution.

And these are some of the powers that central government have devolved to them.

So to give you an example, like Greater Manchester and the West Midlands have more control over how local taxation is spent.

Metro mayors can introduce policies tailored to the needs of their region.

So targeted investments in public transport or infrastructure, supporting those local businesses.

It ensures money raised through the local taxation directly benefits the people and businesses within that local economy.

Now, some people believe there should be more regional devolution to allow local governments more control over their finances in their area.

However, others think that the national government should control the budget and allocate it accordingly to ensure there's a firm grip on public spending and taxes.

Now, as we said, there's pros and cons for each.

So you could have a think about what do you think would be the better solution in this situation.

And we'll have a look at some different views as well.

So some of the Oak National Academy students have different opinions on this issue.

Alex says, "I think regional devolution is great because the local economy can be organised on a local level and more bureaucracy can be cut out." Lucas says, "I think the national government should deal with all finances so that there can be no corruption within the local councils and it can be all allocated fairly." So again, like you can think of this issue, where do you stand? What do you think should be done? Now, we're gonna move on to a check for understanding.

So who decides how local tax revenue is spent in devolved regions? A, the prime minister? B, the chancellor of the exchequer? C, metro mayors? Did you manage to get? It is metro mayors.

And another check for understanding here.

So can you arrange these arguments for and against regional devolution when focusing on the local economy? So one, local areas have more control over their finances.

Two, the government might lose their gut grip over public spending.

Three, it would prevent corruption in local councils.

Four, people can introduce policies tailored to meet the needs of their local area.

How did you get on? So for would be local areas have more control over their finances.

Against, the government might lose their grip over public spending.

Against, it would prevent corruption in local councils.

For, people can introduce policies tailored to the needs of their local area.

And we're gonna move on to the first task, which is to write a speech that a local counsellor could give to explain to residents how their council tax is used to improve the local economy and benefit the community.

So Aisha says, "Try to include some examples of what they spend council tax contributions on that helps everyone.

So take some time now, think about what you're gonna put for the speech, and then when you are ready, unpause, and we'll go through the feedback.

How did you get on? Now, to give you an example, 'cause obviously your answer might differ, but this just shows you what you could have included.

So thank you all for coming today.

I want to take a moment to talk about something that affects every one of us: Council Tax.

I know that paying local taxes isn't anyone's favourite subject, but what if I told you that your contributions are crucial to our local economy, helping to create jobs, fund businesses, and improve the quality of life right here in our community? Firstly, let's talk about where your money goes.

A large portion of the council tax is used to fund essential public services, such as waste collection, social care, and public libraries.

These services keep our communities running smoothly, ensuring that everyone, especially our most vulnerable residents, get the support they need.

Well-funded services make our town a better place to live, attracting businesses and investment, which in turn boosts the local economy.

Your council tax also plays a direct role in job creation and business growth.

For example, we use a local tax revenue to regenerate high streets, ensuring our shopping areas are modern, clean, and attractive.

The High Streets Heritage Action Zone project, which received funding for 67 town centres has already helped restore hundreds of historic buildings and create new jobs across the UK.

Here in our town, similar initiatives help local businesses thrive, given independent retailers and cafes a chance to grow.

Another crucial area we invest in is education and skills training.

By funding apprenticeships and vocational courses, we ensure that young people have the skills they need to access high paying jobs right here in our town.

In the West Midlands, for example, local tax revenue has been used to fund digital skills training, preparing young people for careers in tech and innovation.

Investing in education doesn't just help individuals, it supports businesses by providing them with a skilled workforce, making our local economy more competitive.

Finally, thanks to regional devolution, we have greater control over how money is spent locally.

Our metro mayor and local leaders work closely with businesses and residents to tailor policies that directly benefit our community.

This ensures that money raised through local taxation is reinvested in projects that matter most to you.

Whether that's improving transport links, funding local businesses, or ensuring our town remains a fantastic place to live and work.

So next time you pay your council tax, know that you're not just contributing to services, you are investing in the future of our local economy.

Thank you.

How was your speech? Was it explaining and convincing the residents ways their council tax is used to improve the local economy? If it did, great job.

Well done.

We're gonna move on now to the second learning cycle.

How has levelling up supported local businesses? So the Levelling Up agenda was a Conservative Government initiative aimed at reducing regional inequalities by investing in local communities and economies.

Although the Labour Government dropped the term levelling up in 2024, they stated that the need to address inequalities remained and much of the funding continued.

One way it supported local businesses was through targeted funding for infrastructure projects.

We'll talk more about that.

So to give you an example, the government's 1.

1 billion Town Partnerships initiative, announced in 2023, allocated 20 million pound to each of 55 towns over a decade to invest in local regeneration projects.

Check for understanding, 'cause that was a lot of information there.

So fill in the blanks with one of the options below.

The Levelling Up agenda helped reduce inequalities.

The Government's Town Partnerships initiative supports local.

You've got A, social and separation.

B, regional and regeneration.

Or C, local and leaders.

Which is the correct response? It is B, so regional inequalities and supports local regeneration.

Great job if you've got that.

So another key aspect of this Levelling Up agenda was to focus on skills development.

Do you remember what this idea of skills development is? What does that involve? So it is this idea of getting more training.

To give you an example, in March, 2024, South Yorkshire, Metro Mayor Oliver Coppard, use the levelling up funds to expand vocational training.

This supported businesses that require skilled workers in fields like construction and healthcare.

It ensured that businesses in deprived regions can find trained employees, helping them to expand.

Alongside the region's first Skills Strategy, Oliver Coppard announced the Plan for Good Growth.

What this aimed to do was to attract investment and create secure, high-paying jobs by developing areas such as the Advanced Manufacturing Innovation District and the Skills Strategy outlined missions to move individuals closer to the job market by raising core knowledge and skills attainment increasing the supply of a high-skilled workforce.

So flagship programmes included expanding the Skills Bank, model of public and private investment in upskilling the workforce and establishing a task force to design a South Yorkshire Young Person's Offer, which supported youth in developing necessary work and life skills.

So some examples.

So Jacob's learning photography skills, Laura's learning first aid, and Lucas is learning design skills.

Now if we look at the Levelling Up agenda as a whole, it's helped to promote regional devolution.

Do you remember what that is? So this idea of some powers going to different regions.

This is because it gives metro mayors the power to direct funds where they're needed the most.

Now these mayors are on the ground, they're in the areas, and they can see where that funding is needed.

So to give you an example, in Greater Manchester, March, 2025, Metro Mayor Andy Burnham had already used levelling up funding to support local startups by offering grants and mentoring programmes because that's what's needed in their area.

Now, not all local areas have metro mayors, so their levelling up programme will be run by the local council.

So you might see some areas run by the local council if they don't have a metro mayor.

The reason we are talking about regional decision making is because it helps to make sure money is spent effectively.

It supports business growth and results in strong administrative efficiency.

Again, we are going back to this idea that the money continues to grow as a cycle with strengthening the economies.

So when we talk about administrative efficiency, we're referring to the effectiveness in which the government uses its resources to achieve its goals and manage operations.

So in this case we're talking about the economy.

So we're talking about that idea that they're putting into something, it's growing, and in turn it's creating that cycle.

So true or false? Levelling up always involved metro mayors.

That's false.

Why is that false? Not all local areas have metro mayors so they cannot be involved in those areas.

The local council will make decisions along with the local counsellors and relevant economic experts.

Another check for understanding now.

So the effectiveness with which the government uses its resources to achieve its goals and manage its operations is called? A, economic policy.

B, political lobbying.

C, administrative efficiency.

Or D, monetary inflation.

It is C, administrative efficiency.

Now finally, community involvement was the key to the government's Levelling Up agenda.

Can we think why? So involvement with the community makes sure regeneration projects align with the local needs.

So it's ensuring that you're getting the correct projects for those areas.

To give you an example, in October, 2023, Glenrothes in Scotland, the residents actively participated in shaping a 19.

4 million pound Levelling Up Fund project to improve their area.

So a key focus was Riverside Park, where upgrades include new footpaths, electric vehicle charging stations, and a pump track for biking and skateboarding.

As part of Riverside Park, a giant hippo play sculpture was also designed as a central attraction.

Now this was done through engaging in consultations and workshops, local residents influenced the redevelopment plans, and there was a development of a sense of ownership and pride in the project.

And it demonstrates how community-driven regeneration can create vibrant, inclusive, and economically-thriving town.

It might be worth looking at your own area and seeing if they've been involved in any levelling up programmes.

So check for understanding.

To finish the sentences below, choose the correct word or phrase from the options.

From the Levelling Up Fund, Glenrothes received 9.

4 million or 19.

4 million.

Local residents helped shape the project by voting or participating in consultations.

The regeneration project included office buildings or new footpaths.

Community involvement in regeneration helps to make local pride and economic growth weak or strong.

Which are the correct options? So the first one is 19.

4 million, it was participating in consultations, new footpaths, and it makes the economic growth strong.

Hopefully you managed to get them.

And then that moves us on to the final task for today.

Can you write a letter from the perspective of a small business owner who has benefited from the Levelling Up agenda? Include how funding or support from the government has helped your business grow and how it has positively impacted the local community and local economy.

Now, if you wanted to go one step further and you do know a specific area that has benefited from a Levelling Up agenda programme, you could also look at that specific area in this example.

So take some time now, pause, and then when you are ready, unpause, and we'll go through together.

So how did you get on? Now this is just to give you an example.

Your letter might look different, but also correct.

So we'll go through this one.

To whom it may concern, I'm writing to express my gratitude for the levelling up funding that's helped transform both my business and our local economy.

As the owner of a small independent cafe in Glenrothes, I've seen firsthand how the recent town centre regeneration and improvements to the Riverside Park have brought more visitors and customers to the area.

The upgraded footpaths and new cycling routes have encouraged more people to explore our town, which has significantly boosted footfall to my business.

Additionally, the administrative efficiency of the funding process meant that support reached businesses like mine quickly and effectively, allowing us to see real benefits in a short time.

Furthermore, the investment in skills training and business support programmes has been invaluable.

Thanks to the funding for digital skills workshops, I was able to improve my cafe's online presence, making it easier to reach new customers.

Support from local business grants has also allowed me to expand my team, providing jobs to local young people who are previously unemployed.

The smooth and well-organized management of these initiatives demonstrates how administrative efficiency ensures that funds are directed to where they're needed most without unnecessary delays or bureaucracy.

The Levelling Up agenda has made a real difference to our town, ensuring that small businesses like mine can thrive.

I hope this kind of investment continues, with a focus on efficiently managed programmes that allow more independent businesses to benefit and help drive our local economy forward.

Yours faithfully.

So how did you get on? Did you manage to get something similar? Did you have some different ideas and a different example? Well done for completing that task.

And this brings us to the summary of today's lesson.

To go through that, local taxation, including council tax and business rates, funds essential services, infrastructure, and small business support, helping local economies grow.

The Levelling Up agenda invested in regional regeneration, transport, and skills training to reduce economic inequalities and create jobs.

Regeneration projects, like those in Glenrothes, improve town centres, attract businesses, and boost local employment.

Community involvement ensures that funding is used effectively with residents shaping projects to meet local needs.

Administrative efficiency helps funds reach businesses and services quickly, ensuring economic benefits are felt without any necessary delays.

So that brings us to the end.

Thank you so much for working with me today and enjoy the rest of your day.