'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

1819 Words Dec 2nd, 2010 8 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
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The Levy was introduced on the 1st April 2002 setting out to address the macroeconomic objective of environmental protection while trying to retain sustainable economic growth. The idea is that the tax should make the cost of the aggregates better reflect the cost to the environment and should therefore influence business decisions to become more eco-friendly and efficient. In terms of the Built Environment this encourages sustainable development, “The creation and responsible management of a healthy built environment based on resources efficient and ecological principals” (Charles. Kibert,1994). This definition incorporates six principals, (Miyatake, 1996)
• Minimisation of resource consumption
• Maximisation of resource reuse
• Use renewable and recyclable resources
• Protection of the natural environment
• Creation of a healthy and non-toxic environment
• The pursuit of quality in creating the built environment

There is an argument that taxes such as this will damage international
Competitiveness. The common object of development is to keep the cost as low as possible, to have a minimal construction period and to have the best quality possible. With increased taxation on these materials investors may become more cautious due to the rising cost, which is to be kept as low as possible, therefore there is a possibility of the UK losing international business. This is just part of the problem between economic

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