Economics

Rachel Reeves’ budget announcement today has shown me how closely the economic theories we study in lessons correlate to real world decision making. Concepts such as taxation, inflation, fiscal policy & labour markets moved from the classroom into real government decisions. For example, the increment of the national minimum wage links directly to our lessons about government intervention as well as its effects on the labour market. Understanding key principles such as labour productivity, minimum wages and employment helped me acknowledge the long-term benefits for low-income workers and the potential cost pressures on firms.

The budget's tax measures such as the extension of frozen-income tax thresholds and higher taxes on investment income, overlaps into our study of fiscal policy. This allowed me to understand how the government uses taxation to manage aggregate demand which is a key concept of Macroeconomics. 

Recognising the trade-offs that the Chancellor faced between supporting low-income households during a cost-of-living crisis and maintaining control of government borrowing, made me realise the constant challenges the government are dealing with. 

The decision to increase sugar taxes ties in closely with our lessons on government intervention. This allowed me to understand how the increase in sugar tax can be used to tackle the overconsumption of negative externalities correcting market failure. 

Studying economics at A-level allows me to understand the how the changes in the budget are likely to impact my standard of living in the future.

Written by Urissa Year 13 Economics student

Politics

Last Wednesday, November 26th, the government's Budget announcement really got us talking in our A-Level Politics class. We understood that the government is focusing on fighting poverty and backing public services. To do this, they're planning measures like cutting energy bills by about £150, holding train ticket prices and prescription costs for a year, and widening the benefits system by getting rid of the two-child limit to help struggling families. 

Being in our first year of A-Level Politics, we’re starting to understand why these changes are a big deal and the further impact these changes have. We're learning how governments use taxes and spending to shape society, so when they talk about raising the minimum wage or helping with energy costs, it makes more sense. We're seeing how these choices affect people in real life, change how equal things are, and shape the economy. Instead of just hearing news headlines, we now understand the reasons behind the plans and what the government is giving up to make them happen.  

Studying A-level Politics really opens your eyes to why something like a new UK budget can spark so much anger, especially among working-class families. You get to see how government decisions about taxes, spending, and welfare actually play out in real life. Some political commentators have argued that the recent budget is most defined by the negative impact that it will inevitably have on working families through a higher tax burden. Nonetheless, there may turn out to be a powerful logic to doing so, as it may free up the Labour Party to invest in the UK’s future and economic growth.

Written by Khushi Year 12 Politics student