The Model

You are about to feel what it is like to be the chancellor of the exchequer, to run the nation's economy - or rather the Virtual Economy - as you think fit. If you're interested in exactly what's going on here, there are details available in the information point to the right.

To make any changes, use the drop-down menus - just select the value that is closest to what you want. When you are happy with your reforms, click a 'Run Model' button. If at any time you feel you've messed things up, you can always reset the model and start again.

Of course the model can take a bit of getting used to, so we have a help file which you can browse online, or download print optimised version (6k).

Direct Taxes Help on Tax Income Tax - Basic Rate (%) 10 12 15 15 16 17 18 19 20 21 22 23 24 26 28 30 35 40 Income Tax - Higher Rate (%) 22 25 30 35 38 39 40 41 45 50 60 Higher Rate threshold (£s per year) £20,000 £25,000 £29,000 £29,400 £29,900 £31,000 £32,000 £34,000 £35,000 £40,000 all other income Personal Allowance (£s per year) £1,000 £2,000 £3,000 £3,500 £4,000 £4,615 £5,000 £5,500 £6,000 indirect Taxes Help on Indirect Taxes Beer (tax per pint) triple it! double it! increase by 50p increase by 20p increase by 10p increase by 5p increase by 3p increase by 2p increase by 1p no change cut by 1p cut by 2p cut by 3p cut by 5p cut by 10p cut by 20p cut by 50p abolish it! Wine (tax per bottle) triple it! double it! increase by £1.50p increase by £1 increase by 50 p increase by 20 p increase by 10 p increase by 5 p increase by 3 p increase by 2 p increase by 1 p no change cut by 1 p cut by 2 p cut by 3 p cut by 5 p cut by 10 p cut by 20 p cut by 50 p cut by £1 abolish it! Spirits (tax per bottle of whisky) triple it! double it! increase by £5 increase by £3 increase by £1 increase by 50 p increase by 20 p increase by 10 p no change cut by 10 p cut by 20 p cut by 50 p cut by £1 cut by £3 cut by £5 abolish it! Tobacco (tax per packet of 20) triple it! double it! increase by £1 increase by 50p increase by 20p increase by 10p increase by 5p increase by 3p increase by 2p increase by 1p increase by 1/2p no change cut by 1/2p cut by 1p cut by 2p cut by 3p cut by 5p cut by 10p cut by 50p cut by £1 abolish it! Petrol (tax per litre of unleaded) triple it! double it! increase by £2 increase by £1 increase by 50 p increase by 20 p increase by 10 p no change cut by 10 p cut by 20 p cut by 50 p abolish it! VAT (Value Added Tax) abolish it 5 8 10 12 15 17 17.5 18 20 25 double it Car Tax (Vehicle Excise Duty) on engines larger than 1500cc double it £300 £250 £200 £180 £160 £150 £120 £100 £50 abolish it! Government Spending Help on Government Spending National Health Service increase by 50% increase by 25% increase by 10% increase by 5% increase by 2% increase by 1% keep unchanged cut by 1% cut by 2% cut by 5% cut by 10% cut by 25% halve it Education increase by 50% increase by 25% increase by 10% increase by 5% increase by 2% increase by 1% keep unchanged cut by 1% cut by 2% cut by 5% cut by 10% cut by 25% halve it Law and order increase by 50% increase by 25% increase by 10% increase by 5% increase by 2% increase by 1% keep unchanged cut by 1% cut by 2% cut by 5% cut by 10% cut by 25% halve it Defence increase by 50% increase by 25% increase by 10% increase by 5% increase by 2% increase by 1% keep unchanged cut by 1% cut by 2% cut by 5% cut by 10% cut by 25% halve it Benefits Help on Benefits Child Benefit (£s per week) £2 £3 £4 £5 £6 £7 £8 £9 £10 £10.55p £11 £12 £15 £20 £25 £30 The basic state pension (£s per week) £50 £60 £65 £70 £72 £72.50p £75.50p £73 £75 £78 £80 £100 Child Tax Credit: Family Element £0 £5 £8 £9 £10.45 £12 £15 £20 £25   Run The Model or ... click here to start again