New
New
Year 11

How does taxation support the growth of the local economy?

I can explain how local taxation helps the local economy and how the levelling up has supported local businesses.

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New
New
Year 11

How does taxation support the growth of the local economy?

I can explain how local taxation helps the local economy and how the levelling up has supported local businesses.

Link copied to clipboard

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Lesson details

Key learning points

  1. Local taxation funds essential services, infrastructure, and business support, driving economic growth.
  2. The Levelling Up agenda reduces regional inequalities through targeted investment in skills and business development.
  3. Regeneration projects, such as in Glenrothes, enhance public spaces, attract investment and create jobs.
  4. Community involvement ensures regeneration aligns with local needs, fostering economic and social sustainability.
  5. Administrative efficiency optimises resource allocation, ensuring timely and effective economic impact.

Keywords

  • Local taxation - the way in which the local government finances some of its local spending by imposing charges on citizens and corporations

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

  • Regional devolution - the transfer of some powers from the Government to local authorities in different geographical areas across the UK

  • Levelling Up agenda - a UK Government initiative aimed at reducing regional inequalities by investing in infrastructure, skills, businesses and community

Common misconception

Local taxation only funds national priorities like healthcare and defence.

Local taxation also supports local services, infrastructure and businesses. Council Tax and business rates are reinvested into local economies, funding initiatives such as skills training that benefits communities directly.


To help you plan your year 11 citizenship lesson on: How does taxation support the growth of the local economy?, download all teaching resources for free and adapt to suit your pupils' needs...

Use real-life case studies from your local areas to make the lesson more relatable. Ask pupils to research how their household's Council Tax is spent or identify a levelling up project near them. This encourages active learning and reinforces the impact of taxation on their own community.
Teacher tip

Equipment

Content guidance

  • Depiction or discussion of sensitive content

Supervision

Adult supervision recommended

Licence

This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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6 Questions

Q1.
How many employees are typically in a small business?
Correct answer: 0-49
49-99
99-149
149-500
Q2.
Markets and unions support local economies by providing goods, offering essential services to residents and helping them manage their finances responsibly.
Correct Answer: credit
Q3.
What is one main reason why small businesses are important for employment?
They only hire close family members.
Correct answer: They provide job opportunities for local people.
They reduce job competition in big companies.
They rely only on volunteers instead of paid staff.
Q4.
Match the start of the sentence with its ending.
Correct Answer:Small businesses help keep money,in the local economy by supporting other local businesses.

in the local economy by supporting other local businesses.

Correct Answer:Business taxes help pay for,essential public services like schools and hospitals.

essential public services like schools and hospitals.

Correct Answer:Local markets give people access to,fresh produce and products from independent traders.

fresh produce and products from independent traders.

Correct Answer:Many small businesses invest in,their communities through events and charitable donations.

their communities through events and charitable donations.

Q5.
Small businesses are key drivers of because they bring new ideas, develop unique products and respond quickly to changes in the economy, helping them to grow and remain successful.
Correct Answer: innovation
Q6.
Which of the following is a true statement about how small businesses support the local economy?
Only big companies help local economies grow.
Small businesses contribute nothing to public services.
Correct answer: Small businesses keep money circulating in the community.
Small businesses do not pay taxes like large ones do.

6 Questions

Q1.
Match the word with its definition.
Correct Answer:local taxation,the local government finances its spending by charging citizens

the local government finances its spending by charging citizens

Correct Answer:regeneration,improving and revitalising urban or rural areas through investment

improving and revitalising urban or rural areas through investment

Correct Answer:regional devolution,the transfer of some powers from the Government to local government

the transfer of some powers from the Government to local government

Correct Answer:Levelling Up agenda,reducing regional inequalities by investing in things like education

reducing regional inequalities by investing in things like education

Q2.
Local taxation supports the local economy by funding services, infrastructure, and business ...
Correct answer: growth
taxes
rates
premises
Q3.
Which of the following is an example of a regeneration project?
expanding the military budget
Correct answer: improving a high street
reducing income tax across the UK
cutting national healthcare spending
Q4.
Which of the following is not funded by local taxation?
road maintenance and street lighting
high street regeneration projects
Correct answer: national defence and the armed forces
business support grants for local start-ups
Q5.
Regeneration projects help to attract businesses to previously neglected areas, increasing jobs and economic activity while still keeping money in the local community.
Correct Answer: small, start-up
Q6.
Match the start of the sentence with its ending.
Correct Answer:The Levelling Up agenda helps reduce,regional inequalities.

regional inequalities.

Correct Answer:Regeneration projects improve towns,by attracting more businesses.

by attracting more businesses.

Correct Answer:Community involvement in regeneration,ensures local needs are met.

ensures local needs are met.

Correct Answer:Administrative efficiency means,resources are allocated effectively.

resources are allocated effectively.