'Governements Use Fiscal Policy to Help Them Achieve Their Macroeconomic Objectives' Explain What Is Meant by This Statement and Discuss Specific Fiscal Measures That the Uk Government Has Implemented in Recent Years to

1832 WordsDec 23, 20108 Pages
Essay Economy, Society and the Built Environment ‘Governments use fiscal policy to help them to achieve their macroeconomic objectives’ Explain what is meant by this statement and discuss specific fiscal measures that the UK government has implemented in recent years to influence economic activity in the built environment. Definitions: FISCAL POLICY: “A combination of government spending and taxation used to achieve macroeconomic management. (The flow of government money in and out of the treasury.)” (Danny Myers, 2006, pgs 75&126) MACROECONOMIC OBJECTIVES: “Targets relating to the whole economy, such as employment, price, stability and the balance of payments.” (Danny Myers, 2006, pg128) The Governments Macroeconomic…show more content…
More money is then borrowed as people take advantage of this, which has the effect of boosting the mortgage market as well. According to the Council of Mortgage Lenders (CML), 132,500 house purchase mortgage transactions have benefited from the holiday; this is the equivalent of 25% of the overall 486,400 house purchase loans in the period. Buyers have saved 173 million from the holiday rather than the 600 million the government forecasted. The success is questionable as the incentive was supposedly directed at lower income areas to the North, the Midlands, Wales and Scotland where as, the majority of the benefits have gone to the richer areas in the SE. As this area in particular was hit by the recession the least and where the housing market is the strongest, the governmental loss of the taxation seems to have been wasted. The holiday ended on the 31st December 2009. Although there has been a brief stimulation in the current housing market the number of transactions is still at an all time low. The figures may fall further now that stamp duty has been reinstated, meaning that the government may have to explore other options. AGGREGATES LEVY “The Aggregates levy is a tax on sand, gravel and rock that is dug from the ground or dredged from the sea in UK waters. The tax addresses the environmental damage caused by these business

More about 'Governements Use Fiscal Policy to Help Them Achieve Their Macroeconomic Objectives' Explain What Is Meant by This Statement and Discuss Specific Fiscal Measures That the Uk Government Has Implemented in Recent Years to

Open Document