Peel's economic and financial reforms Flashcards
What changes did Peel make to tax?
He introduced an income tax of 7 pence to the pound for those with incomes of over £150.
What did the tax changes mean for the working classes?
The working man tended to live on £50 or less, so this would not affect the majority of the population.
What would the tax introduction mean for the country?
It would raise £3 million in 3 years. This would be used to pay for the reduction of duties on 750 articles, including raw materials like timber, but also food items like coffee.
What were the four problems Peel faced in the economy?
There was a budget deficit of £1.8 million and it was getting higher. An economic downturn had hit trade and the downturn was creating social and political unrest. Bad harvests caused high bread prices, which encouraged the support for Chartism. This led to a middle class agitation which called for the abolition of the Corn Laws.
Why was repealing the Corn Laws a success?
It removed the threat from the ACLL. The Whigs clearly supported the repeal, and if the whigs supported the League’s popular cause of cheap bread, the Conservatives would be left defending an unpopular policy.
It also helped make Britain a free trade nation.
Why was it illogical for Peel to keep the corn laws?
He had been a previous supporter of free trade so maintaining restrictions on the corn trade didn’t’t fit. Repealing the corn laws meant he wasn’t contradicting his own ideologies.
What major event led to the repeal of the corn laws?
There was a shortage of food following a ‘potato blight’ in Ireland. Over two million people had either died of starvation or emigrated.
What would ending the corn laws allow?
Food from Europe to be imported into Ireland. The Irish famine had made the corn laws indefensible.
