Small enterprise story (the second version)

Small businesses across the UK are expected to have an estimated 3,400 contracts to deliver 2012 Olympic game related services and goods, says chief executive Mike Mulvey from London Business Network.

The event, organised on Tuesday in Stratford, is one of the hundreds of events held by the organisation across London to introduce small enterprises to upcoming opportunities such as catering, football goal post manufacturing and brochure and website design.

Mike said: “6,600 contracts have already been placed to small businesses around the country and 35 per cent of these companies are based in London.”

According to him, the value of these new sub-contracts available now forms part of over £1.7billion, which includes bigger suppliers directly working with the Olympic Delivery Authority (ODA) and London Organising Committee of the Olympic and Paralympic Games (LOCOG).

Catering2Order, a firm with 20 employees based in Southwark, won their catering contract on the Olympic construction site two years ago.

John Charles, managing director of the company, said: “We are expecting one million turnover for this financial year. Winning the contract in such a difficult financial period is fantastic.”

“As a small company we work with bigger supplier, and we are also constantly getting more contracts because of our quality and service delivery and our track record.”

When asked how hard it is to get the contract, John said: “We got the contract through CompeteFor.

"The whole process is extremely competitive, I know lots of companies achieved 100% score on the questionnaire [designed by the buying companies], but they still can't get the contract.

"You have got to offer your uniqueness and something beyond what they require.”

CompeteFor portal is a platform that links buyers and suppliers.

Companies who wish to become part of the Olympic supply chain need to register through the website and bid for the contract with other competitors.

Another previous contract winner is translate plus, a 35-staff firm that provides Welsh translation service to London 2012's education website Get Set.

Director Per Severinsen said: “The contract is very profitable. And obviously, it is a very good reference for the potential clients to use our services.

“When they know that we are working with the biggest sporting organisation in the UK, they just think it is quite impressive.”

When asked whether London-based companies have any priority compared with the ones from other regions, Nick Winch, Olympic co-ordinator from the Federation of Small Businesses, said: “London companies will get the contract if they are the best to deliver the contract.

“They won the contract not because they are local or small. What we do is to make sure London companies are aware about the opportunities and best prepared to bid for the opportunities.”

The challenges small businesses are facing, according to Nick, is some of the contracts might be too big for them to put things together.

“We and other organisations right from the beginning have spoken to the ODA and LOCOG that we wanted the chances to be as small-business friendly as possible.”

Small enterprise story (the first version)

Small businesses across the UK are expected to have an estimated 3,400 contracts up for grab to deliver 2012 Olympic Game related services and goods, says chief executive Mike Mulvey from London Business Network.

The event, organised at Tuesday night at Stratford, is one of the hundreds events held by the organisation across London to introduce small enterprises upcoming opportunities such as catering, florist, football goal post manufacture, and brochure and website design.

Mike said: “6,600 contracts have already been placed to small businesses around the country and 35 per cent of these companies are based in London.”

According to him, the value of these new sub-contracts available now forms part of over £1.7 billion which includes bigger suppliers directly working with the Olympic Delivery Authority and London Organising Committee of the Olympic Games (LOCOG).

Catering2Order, a social firm with 20 employees based in Southwark, won their catering contract on the Olympic construction site two years ago.

John Charles, owner of the company, said: “We are expecting one million turnover for this financial year. To won the contract, in such a difficult financial period, is fantastic.”

“As a small company we work with bigger suppliers, and we are also constantly getting more contracts because of our quality and service delivery and our track record.”

When asked how hard it is in getting the contract, John said: “We got the contract through CompeteFor. The whole process is extremely competitive, I know lots of companies achieved 100% score on the questionnaire [provided by the buying companies], but they still can't get the contract. You have got to offer your uniqueness and something beyond what they require.”

According to Mike, CompeteFor portal provides a platform to link buyers and suppliers.

Companies who wish to become part of the Olympic supply chain need to register through the website and bid for the contract with other competitors.

Translate plus, a 35-staff firm provides Welsh language translation service to the London 2012's education website for schools and colleges.

Director Per Severinsen said: “The contract is very profitable. And obviously, it is a very good reference for the potential clients to use our services.

“When they know that we are working with the biggest sporting organisation in the UK, they just thought it is quite impressive.”

When asked whether London based companies have any priority compared with the ones from other regions, Nick Winch, Olympic coordinator from Federation of Small Businesses, said: “London companies will get the contract if they are the best to deliver the contract.

“They won the contract not because they are local or small. What we do is to make sure London companies are aware about the opportunities and best prepared to bid for the opportunities.”
The challenges small businesses are facing, according to Nick, is some of the contracts might be too big for them to put things together.

“We and other organisations right from the beginning have spoken to Olympic Delivery Authority and London Organising Committee of the Olympic Games that we wanted the chances are as small-business friendly as possible.”

The Beat story (the third version)

A magazine for pre-teens has been launched by the Metropolitan Police to help them explore the issues that concern them most.

The Beat will handle topics such as bullying, terrorism, the role of Safer Neighbourhoods mixed with articles about celebrities, role models and leisure activities.

Jordan, a Year Six pupil at Selwyn Primary School in Waltham Forest, said: "You will find people try to bully you, the magazine is good as it tells where to ask for help and the police are helpful."

But Debbie, aged 11, in the same year as Jordan expressed her concern by saying: "When you call the police, they don't always come very quickly."

Celebrity experiences

Celine, a fellow pupil also aged 11, said: "When you read Rihanna's story in the magazine, you realise you are not the only one to be bullied, and even a famous person has the same experiences as you.

"Then you feel you are not scared, and you know other people also have such an experience."

Apart from raising students' awareness of how to keep safe, the magazine also suggests a range of activities such as power-boating, abseiling, or scaling that pupils can take part in.

Jordan added: "These activities are quite good, I wouldn't mind doing any of them."

Dez Gray, a father of four from Bethnal Green, said: "Children should be encouraged to take part in different activities and get rid of their extra energy.

Empowering kids

"But, these activities The Beat has featured are good, but the costly uniform, required by some of the activities, will turn off the children and parents, and will stop children doing these things."

Assistant Head Morag McHardy, from Selwyn Primary School, said: "I think it is a really good magazine. It raises issues children may not have talked about before and stimulated lots of discussions between them.

"Young people should be empowered with confidence and knowledge to deal with risky situations.

"As parents or teachers are not always around, and they should be empowered to be responsible for themselves."

Alaric Bonthron, Detective Superintendent from the Met Police, said: "We hope The Beat will be a fun, but useful guide for 11 year-olds as they near the end of the time at primary school.

"With summer holidays coming up, more and more young people will be out and about. We hope The Beat gives them some practical advice and tips on how to keep safe."

The Beat story (the second version)

London children enjoy reading their own youth magazine on safety issues and find the police are helpful.

The Beat, a magazine designed for 10 and 11 year-olds, has been launched by the Met Police and aims to help pupils explore different issues that they are concerned about.

It discusses topics such as how to handle bullying, how to react when suspecting a terrorist threat taking place, and the role of Safer Neighbourhoods Team; meanwhile, it also features stunning celebrities, role models and adventurous activities.

Jordan Stansbury, a Year six pupil from Selwyn Primary School in Waltham Forest, said: “You will find people try to bully you, the magazine is good as it tells where to ask for help and the police are helpful.”

Though Debbie Exall, aged 11, from the same Year as Jordan expressed her concern by saying: “When you call police, they don't always come up very quickly.”

Celine Ngonge, a Year six schoolmate of both Jordan and Debbie, also aged 11, said: “When you read Rihanna's story in the magazine, you realise you are not the only one to be bullied, and even the famous person has the same experience as you.

“Then you feel you are not scared, and you know other people also have such an experience.”

Apart from raising students' awareness of how to keep safe, the magazine also suggests a range of activities such as power-boating, abseiling, or scaling that pupils can take part in.

Jordan, the 11-year-old said: “These activities are quite good, I wouldn't mind to join any of them.”

Dez Gray, a dad of four children from Bethnal Green, said: “Children should be encouraged to take part in different activities and get rid of their extra energy.”

However, he also added: “These activities The Beat has featured are good, but the costly uniform required by some of the activities will turn off the children and parents, and will stop children doing these things.”

When talking about celebrities and role models, they all agreed young people want to be famous.

Canel Hassan, a Year six student aged 11 from the same school as others, said about the front page celebrity: “Young children admire him, because he is famous and then you find out he is also very good at school.”

Debbie said of the magazine overall: “The pages are very colourful and the layout is nice. When you see it, you just find it very attractive.”

Assistant Head Teacher Morag McHardy, from Selwyn Primary School, said: “I think it is really a good magazine. It raises issues children may not talk about before and stimulated lots of discussions between them.

“Young people should be empowered with confidence and knowledge to deal with risky situations.

“As parents or teachers are not always around, and they should be empowered to be responsible for themselves.”

Alaric Bonthron, Detective Superintendent from the Met Police, said: “We hope The Beat will be a fun, but useful guide for 11 year-olds as they near the end of the time at primary school.

“With summer holidays coming up, more and more young people will be out and about. We hope The Beat gives them some practical advice and tips on how to keep safe.”

The Beat story (the first version)

London kids enjoy reading their own youth magazine on safety issues and find the police are helpful.

The Beat, a magazine designed for 10 and 11 year-olds, has been launched by the Met Police and aims to help pupils explore different issues that they are concerned about.

It discusses topics such as how to handle bullying, how to react when suspecting a terrorist threat taking place, and the role of Safer Neighbourhoods Team; meanwhile, it also features stunning celebrities, role models and adventurous activities.

Jordan Stansbury, a year six pupil from Selwyn Primary School in Waltham Forest, said: “You will find people try to bully you, the magazine is good as it tells where to ask for help and the police are helpful.”

Though Debbie Exall, aged 11, from the same year as Jordan expressed her concern by saying: “When you call police, they don't always come up very quickly.”

Celine Ngonge, a year six schoolmate of both Jordan and Debbie, also aged 11, said: “When you read Rihanna's story in the magazine, you realise you are not the only one to be bullied, and even the famous person has the same experience as you.

“Then you feel you are not scared, and you know other people also have such an experience.”

Apart from raising students' awareness of how to keep safe, the magazine also suggests a range of activities such as power-boating, abseiling, or scaling that pupils can take part in.

Jordan, the 11-year-old said: “These activities are quite good, I wouldn't mind to join any of them.”

Dez Gray, a dad of four children from Bethnal Green, said: “Children should be encouraged to take part in different activities and get rid of their extra energy.”

However, he also added: “These activities The Beat has featured are good, but the costly uniform, required by some of the activities, will turn off the children and parents, and will stop children doing these things.”

Assistant Head Teacher Morag McHardy, from Selwyn Primary School, said: “I think it is really a good magazine. It raises issues children may not talk about before and stimulated lots of discussions between them.

“Young people should be empowered with confidence and knowledge to deal with risky situations.

“As parents or teachers are not always around, and they should be empowered to be responsible for themselves.”

Alaric Bonthron, Detective Superintendent from the Met Police, said: “We hope The Beat will be a fun, but useful guide for 11 year-olds as they near the end of the time at primary school.

“With summer holidays coming up, more and more young people will be out and about. We hope The Beat gives them some practical advice and tips on how to keep safe.”

Issues related with central government - Stock Exchange (part two)

(b) Explain the role of the stock exchange and the factors which determine the price of shares.

The Stock Exchange provide a market platform for buying shares.

The Stock Exchange acts on two levels, as a primary market, the Stock Exchange will liaise with investment banks and businesses that are looking to raise capital by selling shares. This process involves the business being 'listed' on the Stock Exchange or 'floating'.

However, much of the Stock Exchange's work is as a secondary market. People buying shares may wish to do so for a variety of reasons - to secure dividends or to see the price of the shares rise, for example.

To facilitate this process the market has two main 'players' - stock brokers and market makers.

Stockbrokers act on behalf of clients, buy and sell shares on their behalf and generally belong to firms who are members of the Stock Exchange.

Market makers simply buy and sell shares on their own account but make their money on the difference between the price they pay for buying shares and what they sell them for. This difference is called the 'spread'.

The London Stock Exchange is one of the oldest exchanges in the world, and also one of the most prestigious, supplying high-quality prices, news and other information to the financial community, not just in the UK but across the world.

Many factors determine the price of shares, for example, news, positive news about a company can increase buying interest in the market while a negative press release can ruin the prospect of a stock.

Demand and supply concept, when more people are buying a certain stock, the price of that stock increases and when more people are selling he stock, the price of that particular stock falls.

Earning Per Share - It is mandatory for every public company to publish the quarterly report that states the earning per share of the company on the last quarter. This is perhaps the most important factor for deciding the health of any company and they influence the buying tendency.

For example, since April 20, BP's share price has fallen over 34% because of the oil spill, including a huge 13% fall early this week.

BP is a major component of the FTSE 100 index - it currently comprise 6.1% of the value of basket of shares that make up the index.

Issues related with central government - Stock Exchange (part one)

You are covering a story concerning a local company about which there have been rumours relating to a possible hostile take-over bid. On a day when the FT 100 Share Index fell 250 points, the value of the company's ordinary shares increased significantly.

There have been reports that the Office of Fair Trading might refer any take-over to the Competition Commission.

(a)Explain what is meant by the terms:

FT 100 Share Index (stating also why it is important): the Financial Times Stock Exchange 100 Share Index (to use its full title) is the most famous of a number of 'indices', or lists, of major companies listed on the London Stock Exchange.

It lists the hundred highest valued companies at any one time, in order of their share value.

Ordinary shares: They are known as equity shares and they are the most common form of share in the UK.

An ordinary share gives the right to its owner to share in the profits of the company (dividends) and to vote at general meetings of the company.

Ordinary shares are the riskiest form of investment in a company since there may be no dividends paid and the market value of shares might fall after they have been bought.

The Ryanair share price fell so dramatically in mid-January 2004 because the company announced that its profits for the current financial year would probably be worse than they had previously expected.

Competition Commission: formerly the 'Monopolies and Mergers Commission' (MMC), this regulatory quango vets prospective company mergers and takeovers to ensure that they are not likely to have the effect of compromising free market competition.

Office of Fair Trading: a national regulatory quango established to ensure that free and fair competition operates in a given market for the benefit of the consumer on a day-to-day basis.

The OFT investigates complaints about restrictive practices, cartels, and other anti-competitive behaviour.

Plc: Plc stands for Public limited company, these companies have at least two shareholders and may offer shares to the public. Their owners will 'float' them and they will be listed on the London Stock Exchange.

They must have issued shares to the value of £50,000 before being allowed to trade. Larger plcs are often referred to as blue chip companies, and include household names such as BP and Marks and Spencer.

Hostile takeover: When a company takes over another company against its will, it is a hostile takeover.

A hostile takeover is an acquisition in which the company being purchased doesn't want to be purchased, or doesn't want to be purchased by the particular buyer that is making a bid. It is just like how can someone buy something that is not for sale?

Hostile takeovers only work with publicly traded companies. That is, they have issued stock that can be bought and sold on public stock markets.

The two primary methods of conducting a hostile takeover are the tender offer and the proxy fight.

A tender offer is a public bid for a large chunk of the target's stock at a fixed price, usually higher than the current market value of the stock.

In a proxy fight, the buyer need to convince the shareholders to vote out current management or the current board of directors in favour of a team that will approve the takeover.

While companies fight tooth and nail to prevent hostile takeovers, it isn't always clear why they're fighting. Because the acquiring company pays for stocks at a premium price, shareholders usually see an immediate benefit when their company is the target of an acquisition.

Some analysts feel that hostile takeovers have an overall harmful effect on the economy, in part because they often fail.

Issues related with central government - Finance (part five)

(b) Explain direct taxes; indirect taxes; Public Sector Net Cash Requirement (PSNCR);GDP.

Indirect Taxes:often referred to as “hidden” or “stealth” taxes, these are embedded in the cost of items bough by individuals or companies. Value-Added Tax (VAT) and exercise duties on tobacco and alcohol are examples of indirect taxes. Because they are charged at a flat rate on relevant items, they are seen as regressive – i.e. they do not take account of an individual or company’s ability to pay.

Public sector net cash requirement (PSNCR): formerly the “public sector borrowing requirement” (PSBR), this is the sum of money that the British government will need to borrow through commercial loans or from the public in a given financial year to meet its public spending commitments – that is, it is the difference between the total taxation that the Exchequer expects to raise in a year and its actual outgoings.

Direct Taxes: an umbrella term for taxes, such as Income Tax and Corporation Tax, that are taken directly from the individual or company on whom they are levied, normally at a progressive rate determined by their income levels in a given financial year.

Gross Domestic Product(GDP): the total profit from all goods and services generated in Britain in a given financial year, irrespective of which state benefits from team.

Issues related with central government - Finance (part four)

There is press speculation over what the Chancellor of the Exchequer intends to do in the forthcoming budget to plug a £10bn hole in revenue predicted in the previous budget, due to lower than expected growth and a consequent fall in tax revenue.

The options are: to increase taxation; to increase borrowing; or to announce spending cuts.

You are preparing a feature article to inform your readers of the nature of the problem and its possible solution.

(a) Explain the purpose of the budget and how it is presented and debated in Parliament.

The budget is set out by the Chancellor of the Exchequer in a formal House of Commons Statement.

The purpose of the budget is to set out Government's taxation proposals for the next but one financial year and its spending proposals for the next three years. It also sets out the government's borrowing targets.

Budget proposals have to be approved by Parliament passing the Finance Bill but some tax changes can be implemented immediately (ie within a couple of hours) under delegated legislation.

The Finance Bill undergoes by a committee of the whole House and an ordinary standing committee.

As a money bill, the Finance cannot be delayed by the House of Lords. The fine details of the Budget is set out in the so-called red book, which is pored by accountants and tax advisors looking for loopholes.

Issues related with central government - Finance (part three)

2. Explain the following economic terms:

Recession: a term describing a rapid economic slowdown. Technically speaking, a recession is signaled by a period of two successive economic quarters during which the economy “shrinks” – that is, during which less money is being borrowed and spent by consumers, leading to lower sales and profits for businesses, the scaling back of production, and redundancies.

Public sector net cash requirement (PSNCR): formerly the “public sector borrowing requirement” (PSBR), this is the sum of money that the British government will need to borrow through commercial loans or from the public in a given financial year to meet its public spending commitments – that is, it is the difference between the total taxation that the Exchequer expects to raise in a year and its actual outgoings.

Consumer Prices Index (CPI): a few years ago, the Chancellor announced the Government now favoured a different way of reckoning inflation, the CPI, which does not include the costs of mortgages, and measures so-called “underlying inflation”. The CPI is the “official” measure of inflation.

Mortgages are not such a big factor in continental Europe where home-ownership is so prevalent as in the UK and Ireland, and far more people rent their homes. Purely coincidentally, this change was made just at a time when UK mortgage costs began to rise for the first time in many years.

Balance of Trade: the difference in value between imports to and exports from the UK in a given financial year, excluding financial transfers and debt payments to foreigners.

If Britain is importing consumer goods and services worth more than those it is exporting, it is in a “balance of trade deficit”; if the reverse is true, it is in a “balance of trade surplus”.

The UK is a net importer, that is, we import more goods than we export, which creates a balance of trade deficit. This deficit is, however, covered by the value of invisible exports, the services the UK sells abroad, such as banking and insurance.

The UK always shows a surplus on invisible exports, and it is frequently said that the country has shifted from being a manufacturing nation to relying on the service economy.

Indirect Taxes: often referred to as “hidden” or “stealth” taxes, these are embedded in the cost of items bough by individuals or companies.

Value-Added Tax (VAT) and exercise duties on tobacco and alcohol are examples of indirect taxes. Because they are charged at a flat rate on relevant items, they are seen as regressive – i.e. they do not take account of an individual or company’s ability to pay.

Progressive Taxes: broadly a tax based on the ability to pay, such as income tax. So the richer you are, the more you pay.

Issues related with central government - Finance (part two)

You have been asked to help write a short feature on the Budget and to compile a glossary of economic terms.

For the purpose of this exercise you are not required to write the article but to prepare the material.

1. Describe the purpose of the Budget and outline what the Chancellor will usually cover in his speech.

The Treasury's big day in each parliamentary session it the budget, in which the Chancellor sets out in a formal House of commons statement.

The purpose of the budget is to set out Government's taxation proposals for the next but one financial year and its spending proposals for the next three years. It also sets out the government's borrowing targets.

The budget speech is in the spring (on Aril 22 this year), but there is a pre-Budget report in the autumn, in effect a progress report on the UK's economic position and the Government's finances.

In the autumn statement, the Chancellor outlines the approach he is likely to take in the Budget.

Issues related with central government - Finance (part one)

You are helping on a Budget special and have been asked to prepare a brief for the editor explaining key terms for the readers and then to obtain quotes from local contacts to get reactions to the Budget.

Direct Taxes: an umbrella term for taxes, such as Income Tax and Corporation Tax, that are taken directly from the individual or company on whom they are levied, normally at a progressive rate determined by their income levels in a given financial year.

Inflation: This is general increase in the prices of goods and services, or to look at it another way, a fall in the purchasing power of the pound, caused by too much money chasing too few goods and services.

Inflation is calculated using either the Consumer Prices Index (CPI), or Retail Prices Index (RPI), which monitor fluctuations in the values of a notional “basket” of goods containing items regularly bought by a typical British household.

Although the CPI is the “official measure of inflation, the RPI figure is also published.

Recession: a term describing a rapid economic slowdown. Technically speaking, a recession is signaled by a period of two successive economic quarters during which the economy “shrinks” – that is, during which less money is being borrowed and spent by consumers, leading to lower sales and profits for businesses, the scaling back of production, and redundancies.

Gross Domestic Product(GDP): the total profit from all goods and services generated in Britain in a given financial year, irrespective of which state benefits from team.

Balance of Payments: the difference in value between imports to and exports from the UK in a given financial year, including all types of payment.

It encompasses both “visible” items (such as cars and refrigerators) and “invisible” ones (such as legal and financial services), as well as the value of financial transfers and debt payments to foreigners.

If the value of imports exceeds that of exports, Britain is in a “balance of payments deficit”; if the reverse if true, it is in a “balance of payment surplus”.

Public sector net cash requirement(PSNCR): formerly the “public sector borrowing requirement” (PSBR), this is the sum of money that the British government will need to borrow through commercial loans or from the public in a given financial year to meet its public spending commitments – that is, it is the difference between the total taxation that the Exchequer expects to raise in a year and its actual outgoings.

Chancellor of the Exchequer: the secretary of state in charge of the Treasury is known as the Chancellor of the Exchequer, an ancient title.

Interest rates: an instrument of monetary policy used to promote saving and investment, and reduce consumer spending.

Since the 1980s, raising interest rates has been the preferred method of controlling inflation. The Bank of England’s Monetary Policy Committee (MPC) meets monthly to decide whether or not to raise or lower interest rates.

Issues related with central government - Her Majesty's Government (HMG) - part four

(c) Explain who appoints government ministers.

The queen appoints the government ministers on the recommendation of the prime minister.

This is derived from the Royal Prerogative power, which means, in this case, sovereign power is exercised 'on the advice of ministers' – it is ministers and in most cases, the prime minister to make the necessary decisions.

Ministers, including prime minister, are Ministers of the Crown.

Issues related with central government - Her Majesty's Government (HMG) - part three

(b) How and why will the MP's freedom to criticise government policy be affected by the appointment and what conventions will now affect him/her?

The way that MP's freedom to criticise government policy will be affected by its appointment is explained as below.

Government ministers, particularly Cabinet ministers are expected to endorse and support publicly the actions of the government of which they are a part, even if they do not agree with them in private.

It has long been a custom for ministers to bite their tongues rather than speak out the opposed opinion.

The convention will now affect him/herself is collective responsibility.

It take that all Cabinet members take full responsibility for decisions made by the Cabinet even if a particular case an individual disagrees with, and even voted against, a decision.

No Cabinet members should publicly voice any dissent or doubt once a decision has been reached, no matter how fierce opposition was in the debate around the cabinet table.

Any Cabinet member who wants to distance him/herself from a decision is honour-bound to resign from his/her ministerial job, as Robin Cook did over the war in Iraq.

Issues related with central government - Her Majesty's Government (HMG) - part two

3. You receive information that the Prime Minister has reshuffled the Government and as a result your local MP, who up until now was a backbencher and outspoken member of a select committee who had been critical of government policy, has become a junior minister.

(a) Explain what is meant by the terms Government, backbencher, select committee and junior minister.

Government: The government runs the country. It has responsibility for developing and implementing policy and for drafting laws. It is also known as the Executive.

The political party that wins the most seats in a general election forms the new government, led by their party leader - who becomes Prime Minister. The Prime Minister appoints ministers, including the Cabinet, who often work in a government department, and run and develop public services and policies.

Government ministers are chosen from MPs and Lords in Parliament. Your MP may be a member of the party forming the current Government, but it doesn't necessarily mean they are working 'in government'. The rest of the MPs and Lords who are not in government carry out the work of Parliament. Ministers must regularly respond to oral and written questions from MPs and Lords.

Backbencher: a term referring to the majority of members of Parliament in the House of Commons, who represent a constituency, but have no additional job title or responsibility within the government or opposition, and therefore tend to sit on the 'back benches' (the seats behind the front row on either side of the house).

Select Committee: a permanent parliamentary committee charged with scrutinizing the day-to-day workings of a government department, and other public authorities related to the responsibilities of that department. For example, the Culture, Media and Sport Select Committee examines the work of the Department for Culture, Media and Sport, as well as that of the British Broadcasting Corporation (BBC).

Junior ministers: usually refers to people holding the ranks of Under Secretary of State or Minister of State in a government department. It is not a formal title, but a description of the person's relatively low ranking in the department, Junior ministers, broadly, are below Cabinet rank. The actual power that they hold and the level of responsibility they bear varies from person to person and from department to department.

Although junior ministers are not part of the cabinet, they are officially regarded as members of Her Majesty's Government for purposes of collective responsibility, together with Parliamentary Private Secretaries (PPS). Becoming PPS is the first step on the ladder towards being in the government.

Issues related with central government - Her Majesty's Government (HMG) - part one

3. You hear that your local MP is to introduce a Private Member's Bill to abolish car tax and replace it with an increase in petrol duties.

You contact the MP concerned and she informs you that she intends to introduce her Bill under the Ten Minute Rule but holds out little hope for its success. She says that she has raised the matter of abolition of car tax at questions time but was not satisfied with the Secretary of State's reply.

You consult Hansard to look up the Minister's reply and see that she said the matter was being considered by a cabinet committee and a Green Paper will be issued in the near future. The Government hopes to follow this with a White Paper in nine months' time.

(a) Explain the terms in bold above.

Private Member's Bill(PMB): a Bill proposed by an individual backbencher, normally on an issue dear to his or her heart, and/or one that concerns his or her constituents. While they may cast the media's spotlight onto an issue, most PMBs are never allotted sufficient parliamentary time to pass into law, but there have been exceptions, including the 1967 Abortion Bill, introduced by future Liberal leader David Steel.

Ten Minute Rule: one of three ways in which private members' Bills (PMB) may be introduced into Parliament and the one that most often grabs headlines. A member of Parliament must have their idea for a Bill proposed and seconded by colleagues, and obtain a further eight members' signatures, and they will then be given ten minutes in which to introduce their proposals to the Commons. A MP who opposes the Bill will then have the same amount of time to make a speech outlining his or her objections.

Questions Time: session of parliamentary business during which backbenchers and'or peers on all sides have the opportunity of questioning individual departmental ministers on the conduct of their ministerial business. Major spending departments each have a question time session at least once a fortnight, while the most famous is “Prime Minister's Question”, held every Wednesday lunchtime.

Secretary of State: an umbrella term for the most senior government minister in a spending department (e.g. the Secretary of State for Health).

Hansard: the official record of all parliamentary business in both Houses. Protected by legal privilege and now available to read online, it is nonetheless not an entirely verbatim record of proceedings (except for the words used by the serving prime minister).

Cabinet Committee: subsets of the Cabinet, usually made up of groups of three or more senior ministers whose departmental responsibilities are related in some way. There are three types: standing (permanent); and hoc (temporary); ministerial (permanent, but made up nor of ministers, but of senior civil servants from related spending departments).

Green Paper: a consultation document on a tentative government policy proposal that may, in time, evolve into a White Paper, and from there into a proposed Bill. All government Bills (other than emergency legislation) will go through at least one Green Paper stage, although if the public and/or interest groups react strongly against a proposal, it is unlikely to go much further.

White Paper: a crystallized version of a Green Paper, containing more concrete proposals. If a proposed government Bill has got this far, it will normally proceed further into a formal draft Bill, and may well subsequently become an Act of Parliament.

Issues related with central goverment - Monarchy (part three)

(c) List five local contacts you would approach for quotes to give this a local angle and give reasons for your choices.

Local resident: to find out what his/her opinion about the constitutional monarchy in this country in general.

Leader of the local council: to find out what view he/she holds, in favour of the monarchy or oppose the monarchy.

Another senior councillor: if the 1st councillor was in favour of the monarchy I will try to find one who held an opposing view, not necessarily against the monarchy as such, but sceptical about its role in a democracy and its cost. And vice versa.

Local taxpayers' group: to find out if they think the monarchy is good value for money.

Professor/senior lecturer from a local university or college: to ask about the technicalities of the monarchy and whether a republic would be any cheaper.

Issues related with central goverment - Monarchy (part two)

(b) The monarch's sources of income include:

Civil List:

A sum of money voted for annually by Parliament to pay for the Queen's duties as Head of State and head of the Commonwealth and for the royal household.

This income in not taxable. Other members of the Royal family are included on the Civil list, although Prince Charles gets all of his income from the revenues of the Duchy of Cornwall (famous for its biscuits etc sold under the brand Duchy Originals). He voluntarily pays tax on this.

The Queen, since April 1993, has refunded part of the Civil List money to parliament, using her personal pot of money, the Privy Purse, which will be discussed later.

In broad terms, the Civil List funds the following expenses for both the reigning monarch and his or her spouse:

around 70 per cent pays the salaries of the 645 servants, butlers, and other employees of the Royal Household;

most of the remaining 30 per cent covers the costs of royal garden parties (attended by some 48,000 people each year) and hospitality during state visits.

Grants-in-aid:

Money granted by Parliament to pay for the upkeep of the inhabited royal palaces owned by the state, such as Windsor Castle, and transport for official duties.

The cash comes respectively from the budgets of the Department of Culture, Media and Sport (DCMS) and the Department of Transport, and is not taxable (DfT).

For example, the DCMS pay £15.3m a year (fixed until at least 2011), the DFT paid £6.2m in 2007 – 2008.

Privy Purse:

The income of the Duchy of Lancaster, used mainly to fund other members of the Royal Family. Some of the money is handed over by the Queen to reimburse some of their civil list payments. It is taxable, after some deductions for official purposes.

Personal Income:

The Queen's private resources for non-official activities. Legally untaxable, but the Queen now voluntarily pays some income tax, at a rate privately agreed with the Treasury.

Issues related with central goverment - Monarchy (part one)

An Outspoken local MP has voiced the opinion that the monarchy has no place in a modern democratic society. Your editor has asked you to research the role played by the monarchy for a piece in next week's paper.

(a) Describe the role played by the monarchy and explain how it is funded.

The UK is a constitutional monarchy, which means that its head of state is a king or queen whose power is defined and limited by the constitution, in contrast to “absolute monarchies (as this country once was).

By the beginning of the 20th century, real political power had been transferred to Parliament through the development of the ministerial system.

But the monarch still plays a number of important roles in the governing of the UK, although most of the Royal Prerogative powers are now exercised by others in the name of the sovereign.

The government, although elected by the people, is still known as Her Majesty's Government (HMG) and we still get official notifications from the state OHMS (On Her Majesty' Service).

The role of the monarchy:

The queen is said to “personify the nation”, standing above party politics as Head of State, but is not head of government, a role in the UK by the prime minister. She represents the “unity and standards of the nation” (as opposed to the state).

By law, the monarch is:

Part of the legislature;

Head of the executive;

Head of the judiciary;

Commander-in-Chief of the armed forces;

Supreme Governor of the Church of England, the established church;

Head of the Commonwealth (and head of state of 15 of its 53 members);

he authority from which the Royal Mint derives its licence to coin and print money
(at present, in his or her image).

The roles and the power that go with them are derived from the Royal Prerogative.

In an age when government holds sway over most key political decisions, the prerogative powers that monarchs personally still exercise are through the following roles and duties:

Reading Queen's Speech at the annual State Opening of Parliament or shortly after a general election;

Governing the Church of England;

'Creating' peers, and conferring knighthoods and honours in person;

Meeting the prime minister once a week usually on Tuesday to discuss Cabinet business and to offer advice on affairs of state;

Entertaining visiting foreign heads of state at Buckingham Palace;

Visiting other nations on official state visits – including those of the Commonwealth – as Britain's premier overseas ambassador;

Chairing meeting of the Privy Council;

Attending the 'Trooping the Colour'

A series of the prerogative powers held by the queen, but normally exercised by others, or by her 'on the advice of her ministers (all government ministers, including the Prime Minister, are Minister of the Crown)'.

It means in most case it is ministers and the prime ministers to take the necessary decision. The powers include:

Dissolving and summoning Parliament, that is, calling election and forming new parliaments after the results are in;

Giving the Royal Assent to Bills passed by Parliament;

Appointing ministers and other senior public officials, including judges, diplomats, governors, officers in the armed forces, police chief constables, and Church of England bishops and archbishops;

Devising the legislative agenda for each parliamentary session (year of Parliament) and writing the Queen's Speech, which will make these proposals public at the State Opening of Parliament;

Declaring war and peace;

The prorogation of Parliament, that is, the suspending of the activities of Parliament (if not Parliament itself) for the duration of holiday periods, such as the Summer Recess, and the annual Christmas and Easter breaks;

Drawing up lists of nominations, in consultation with the leaders of opposition parties, for peerage, knighthoods, and other honour in the New Year Honours List and the Queen's Birthday Honour List;

Issuing 'Royal Pardon';

Raising taxes;

Making treaties;

Dealing with emergencies;