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Money to pay for these is raised through a variety of taxes, eg:

• income tax
• National Insurance
• VAT
• air passenger duty
• fuel duty

Once this tax is collected it is allocated to various government budgets.

There are three different levels of government in Scotland:

• UK Government
• Scottish Government
• local government

UK Government

The UK Government is based in Westminster. Matters which are run by the UK Government rather than by the Scottish Government are called “reserved” matters. These include:

• economic policy
• defence
• international relations

The UK Government also oversees the running of organisations which we call public corporations. These organisations are founded by an Act of Parliament and are usually funded by taxpayers.

The ����ý is an example of a public corporation. It was founded by the 1922 Broadcasting Act, and is funded by the TV licence fee. It is not directly run by the UK government.

Scottish Government

The Scottish Government is based in Holyrood. It is responsible for “devolved” matters. These include:

• health
• education
• police
• transport

The Scottish Government has some limited income tax raising powers and receives a block grant from the UK Government. The Scottish Government sets the budget for running Scotland.

Scottish local government

Scottish local government is made up of 32 local authorities – often referred to as councils. They are allocated budgets by the Scottish Government and use these funds to run many local services. These include:

• housing
• libraries
• schools
• bin collection and recycling