Chapter Two Flashcards
Why did the King appoint Pitt?
He had made a strong impression in Parliament as Chancellor. George would be able to keep Fox out of office. Needed someone to restore national confidence.
What opposition did Pitt face upon his appointment in 1784?
He had no following from the Commons, none would serve in his Cabinet, which he made up of members from the Lords leaving him isolated. Cartoonists nicknamed his administration the ‘Mince Pie Administration’.
How was Pitt able to survive as PM?
King’s support, his personal ambition, and Fox gradually upset his supporters (by condemning the King’s actions).
What happened upon Pitt taking office?
He asked the King to call an election so that he could gain a Parliamentary majority. The King gained Pitt as much support as possible. He returned to Parliament with a large majority thus it was easier to establish himself as PM.
What was the national debt?
£240 million. It was high due to the War Britain fought against the American colonies that had been settled in 1783. 16 times the government’s annual revenue.
How did Pitt tackle the National Debt?
Set up the Sinking Fund in 1792 which he paid £1 mil into a year from taxation. Successful peacetime policy as it cut debt by £10 million.
How did Pitt put his theories of free trade into practice?
He reduced heavy customs duties. Britain had an outdated system of tariffs. 1787 Consolidation Act: lowered, simplified, removed complex customs duties. Book of Rates published the rate of duty for each item. Lessened high taxes on items such as tea, reducing smuggling. Board of Trade set up to oversee trade reforms.
How was smuggling made difficult?
Pitt’s Hovering Act in 1787
What did the Excise Bill allow?
Tobacco and spirits to enter country untaxed.
What new taxes did Pitt introduce?
To recoup the losses from his reduction of duties, Pitt introduced new indirect taxes on horses, coaches, windows, bricks, hats, maid servants, ribbons, and candes. Commodities that the wealthy used. Was seen as ungenious by some and ridiculed by others. Window tax seen as particularly poor decision: penalty on light and air and limited development of glass industry.
What trade treaties did Pitt make?
Attempted one with Ireland in 1786 but was strongly opposed as British manufacturers feared ompetition as Irish wages were low. Made one with France in 1786 where both countries reduced duties on imprts from the other country to enroucage a greater flow of trade, but successes were negated by French Revolution 1789.
Overall impact of Pitt’s reforms?
Put Britain in a stronger position than France to face War when it came in 1793. Annual government income increased, smuggling was hit hard, benefited trade a and industry and restored national credit and public confidence.
How was the government inefficient?
No set procedures for day to day business leading to confusion and inefficiency, as the roles of various ministries overlapped, MPs took advantage of privileges such as free post. Corruption amongst government ministers who enriched themselves from public funds through sinecure office (position with a salary with little to no work) and pensions.
What did Pitt do with Sinecure offices?
Abolished many of the hundreds, mainly by allowing them to lapse, so as not to provoke opposition. Refused the sineure of Clerkship of the Pells, worth £3000 a year.
What new budgeting system did Pitt set up?
New budgeting system set up by taking estimates of expenditure from each government department and drawing up parallel tax proposals. System still in place today.
