Public sector businesses are funded through various taxes collected by central and local governments. They do not focus on profit like private businesses, allowing them to prioritize high quality services for those unable to pay privately. However, without competition there is less pressure to improve. Performance measures and targets are used instead to boost efficiency, but it can be difficult to assess value for money. The document instructs the reader to create an information sheet explaining the structure of the UK public sector, including descriptions of central and local government, Parliament, and duties of national agencies.

1. Public Sector
Organisations
– Part 2

2. Who Finances Public Sector Business?
Public sector businesses are funded by central or local
government out of:
▪ Income tax
▪ National Insurance contributions
▪ Local taxation
▪ VAT
▪ A host of other taxes, such as airport tax, inheritance tax,
insurance tax, duty on petrol, tax on pensions, etc.

3. Public Sector Organisations - Advantages
Public sector organisations do not have to worry about making
a profit, so they can concentrate on supplying high quality
products.
They supply products to people who need them, and who would
not otherwise be able to pay for them privately.

4. Public Sector Organisations - Disadvantages
In the public sector there is no pressure to improve or to be the
best as there is no competition.
Public sector organisations have to use other means, such as
performance measures like targets to improve their efficiency.
However, it is often difficult to find out if an organisation is
providing value for money.

5. Task – To be completed on Word
• Begin with a statement that shows you understand
what a Public Limited Company is (PLC – owned by
shareholders)
• Produce an information sheet to explain how the
public sector is structured:
– Include a description of the UK Government (Central, local,
public corporations)
– Describe how parliament is structured with each of the main
components
– List of the duties/responsibilities of 3 national
agencies/departments