Which government department is responsible for setting budgets and spending reviews?

• A. HM Treasury
• B. Home Office
• C. Department for Education
• D. Ministry of Housing

Answer: (A)

Controlling the government's finances is handled by HM Treasury. This department plans the overall budget, drafts the Budget, and conducts spending reviews to decide how much money each area of government will receive. Departments like the Home Office or the Department for Education run their programs within the funding set by the Treasury; they don’t determine the total budget themselves. The spending reviews gather bids from departments, assess priorities and value for money, and then allocate resources accordingly. Because it coordinates revenue, expenditure, and the level of funding across the whole government, HM Treasury is the department responsible for setting budgets and conducting spending reviews.