Finances

Question 1

Financial situation inherited by Elizabeth

Answer 1

• the Crown was £300,000 in debt
• annual income was £286,667
• the income from customs duties on exports had been increased by Mary I’s new Book of Rates
• Mary had also re-issued coinage with more silver in to tackle the problem of inflation that came with debasement
• inflation however was still a problem
• there was some land left from the dissolution of the monasteries but most had been sold by this point
• Wolsey had implemented a new form of tax, in which subsidies were based on an individual’s wealth and income
• however, individuals would self-assess and often undervalued what they had

Question 2

Raising funds

Answer 2

• religious revenues going to Rome under Mary were taken back by Elizabeth
• Elizabeth also raised money by selling lands left from the dissolution of the monasteries, accumulating around £800,000

Question 3

Tackling debt and income

Answer 3

• the Crown’s death had been payed off by 1578 and a reserve was being built
• England’s dependency on foreign loans was also ceased
• crown income rose by 50% between 1558 and 1603
• this was enough to watch spending but not enough to cover to spending needed for war with Spain from 1585

Question 4

Cutting expenditure

Answer 4

Elizabeth cut expenditure in a number of ways

• halved royal palaces’ maintenance costs
• underpaid royal officials
• delayed church appointments
• diplomacy in foreign relations

Question 5

Impact of war on finances

Answer 5

• Elizabeth began selling off monopoly rights for specific products to combat the financial strain of war with Spain
• the war cost huge amounts and put the crown back in debt
• by the end of the 1500s people were reluctant to pay subsidies so the amount collected fell

Question 6

Financial problems for Elizabeth

Answer 6

• taxation wasn’t reformed
• England had the lowest taxes in Europe
• value of each subsidy raised fell throughout the reign
• ordinary revenues play subsidies were greater than total annual costs by 1590s
• a number of unpopular measures were introduced by Elizabeth, namely purveyance and monopolies
• monopolies led to prices of commodities increasing while profits grew for the person who owned the monopoly
• purveyance allowed the Crown to buy whatever it needed at below market value

Question 7

Assessment of Elizabeth and finance

Answer 7

• Elizabeth is criticised for not undertaking reforms to put Crown finances on a secure, long-term path
• there were multiple cases of poor management
• there was also an increase in a corruption, with a blind eye being turned to underpaid government officials accepting gifts, favours and bribes

Question 8

Methods used to control prices and inflation

Answer 8

• fasting was enforced for lent, reducing demand and need for stock
• as well as this, Wednesday and Friday were made fish days, which would increase the fishing business and meat food stores would be conserved, lasting longer than they otherwise would
• however, this was seen as too superstitious and Catholic to some protestants
• the book of orders was another price controlling methods, which stated that grain couldn’t be hoarded
• any grain also had to be sold to the poor due to eh bad harvest of 1586
• recoinage was issued hoping prices would go down but the pope were suspicious and lacked confidence in it

Question 9

problem with monopolies

Answer 9

• monopolies had their downsides for everyone
• companies who had been producing the product and not given a monopoly would lose money or cease to exist
• since prices could increase with a monopoly in place, the people buying the product were annoyed
• even the company given the monopoly had trouble in some cases, struggling to handle the demand that they now solely had to fulfil, especially of it was a widely used product
• this would lead to shortages and social discontent
• however, Elizabeth was reluctant to give up monopolies since increased prices meant more was being spent and more money was going to the government via tax
• a hearing was set up in 1597 which showed a full list of all monopolies given out and argument against them, stating that some were harmful
• as a result of the hearing, Elizabeth said that she would revoke some monopolies
• a proclamations was set out banning contentious monopolies, e.g. on vinegar and salt