The Government and the Economy During this lesson students examine the role of national government in relation to taxation and public spending. The lesson can be run as a stand-alone unit or as a follow up to the lesson 'economic cycles.' Aimed at KS4 or Post-16 by the end of the lesson students will: Understand key economic terms including taxation, welfare benefits, public spending and the budget; Assess the impact of changes to taxation and welfare benefits on people with different personal circumstances; Appreciate some of the dilemmas involved in public spending decisions. Acknowledgements: This classroom resource was developed in partnership with global business advisory firm FTI Consulting. Their support enabled this specialist resource to be distributed to schools for free.