Pitt's reforms

Question 1

Who was Richard Frewin?

Answer 1

Reformed customs by making sure all customs duties were paid into one fund called the Consolidated Fund. This prevented corruption as the amount of duties received could be checked more easily.

Question 2

What was Pitt offered in 1786?

Answer 2

A high speed rail network.

Question 3

Why did Pitt refuse the offer of a high-speed rail network?

Answer 3

It was opposed by Anthony Todd whose family had controlled the postal service for 30 years. Pitt released that some jobs were seen as “personal property” and so he had to be careful not to offend too many powerful people.

Question 4

What did Sir Charles Middleton do?

Answer 4

Reformed the navy. Selecting the talented and forward-thinking Middleton was a success - he increased efficiency and this led to 33 more warships being built between 1784 and 1793.

Question 5

Why was Sir Charles Middleton a risk?

Answer 5

Middleton was controversial because senior naval officers were worried by his reforms and many did not want change to be done to traditional practices. On this occasion, Pitt had to do it anyway,

Question 6

What had Pitt reduced by 1790?

Answer 6

The number of customs and excise officers by 750. Incompetent or very corrupt officials were targeted. However, he paid the remaining officers more so that they were less corrupt and more efficient.

Question 7

How did Pitt abolish sinecures?

Answer 7

Slowly and waited for the holder to die. Only 28 had been abolished by 1792, but they were all gone by 1806. This did save a lot of money, but was slow.

Question 8

Who did Pitt employ?

Answer 8

More tax collectors so that his new taxes were efficiently collected.

Question 9

What did Pitt pass in 1784?

Answer 9

The India Act.

Question 10

What did the India Act do?

Answer 10

This put two cabinet members onto the board of the East India Company. The Board controlled the East India Company but it was based in London. This gave Pitt some control of the East India Company to make sure the empire was being run properly.

Question 11

Why was the India Act limited?

Answer 11

The East India Company was too powerful and influential. This was the best he could do at that time, if he had tried to go further, it would have created a huge amount of opposition that might have cost him his job.

Question 12

What was the overall effect of the administration reforms?

Answer 12

Reduced the bribery ad corruption which was common in all parts of the administration; it increased procedures to ensure that revenue was collected; it reduced the number of costly and useless posts and increased numbers in key areas such as revenue collection and the navy.

Question 13

What administrative idea of Pitt’s was defeated?

Answer 13

His idea to abolish 36 rotten boroughs was defeated in parliament in 1785. He did not attempt to reintroduce it.

Question 14

Why were his financial reforms effective?

Answer 14

Popular with many people - seen as fighting against the “old corruption.”

Question 15

When was income tax introduced? Why?

Answer 15

1799 - the majority of war time expenditure came from taxes.

Question 16

How was national debt reduced?

Answer 16

Reduced by £10 million by 1793.

Question 17

Where were indirect taxes raised?

Answer 17

On wealthy purchases, e.g. hats, horses, carriages and beer licences.

Question 18

How were import duties altered? Why?

Answer 18

Attacks on a smuggling trade which reduced government income. Pitt reduced a ridiculously high import duty of 119% on tea to 25%. This encouraged people to avoid heavy penalties for smuggling and pay the duty. Tobacco and wine were also reduced.

Question 19

What was the ‘window tax’?

Answer 19

Tax policies meant houses which had more windows were considered bigger, so paid more tax.

Question 20

What was the point in the Consolidated Fund?

Answer 20

To combat fraud.

Question 21

When did Pitt first add to national debt?

Answer 21

1793

Question 22

What was reformed in 1786?

Answer 22

The Civil List. This reduced the amount of money sent to the monarch.

Question 23

When was the Sinking Fund introduced?

Answer 23

1786.

Question 24

Statistics on the reduction of National Debt?

Answer 24

In 1784, national debt stood at £243 million. By 1793, he had managed to reduce the debt by £10 million, and may have wiped it out within 45 years had war not broken out.

Question 25

What act was introduced in 1787?

Answer 25

The Hovering Act.

Question 26

What did the Hovering Act do?

Answer 26

Gave customs and excise officers the right to search ships up to 12 miles off shore, which helped prevent smuggling.

Question 27

How is the sinking fund viewed to be unsuccessful?

Answer 27

Not very successful in war time because it cost a lot of money. It was only suited to peacetime.

Question 28

What was national debt at in 1801?

Answer 28

£456 million.

Question 29

What unsuccessful finance reform did Pitt attempt to introduce?

Answer 29

A tax on retail shops was introduced in 1785. This was repealed in 1789 after rioting by those who feared price increases.

Question 30

Why did Pitt like the idea of free trade?

Answer 30

He thought it would make Britain richer, increase government revenue and would therefore help to reduce national debt.

Question 31

Who’d Pitt attempt to sign free trade agreements with?

Answer 31

Ireland, America, Spain, Portugal, Russia and France. The most successful treaty was the Eden Treaty with France.

Question 32

When was the Eden Treaty signed?

Answer 32

1786.

Question 33

What did the Eden Treaty mean?

Answer 33

This benefited both countries, but Britain more. Wine duties were reduced which benefitted France, while both countries reduced duties on importing textiles poetry and leather goods. This benefited Britain more as its industrial revolution was well under way so goods were easier and cheaper to produce.

Question 34

How did British trade to Europe change?

Answer 34

Between 1787 and 1793, British trade to Europe almost doubled:
In 1783, Britain had a trade deficit with Europe of £2.5 million.
By 1793, it had a trade surplus with Europe of £2 million.

Question 35

How did war limit Pitt’s plans for trade?

Answer 35

Pitt was stopped from developing his ideas on free trade any further, especially as the war was with France.