Pitt to Peel

Question 1

What happened in the 1782-4 political crisis?

Answer 1

• Lord North resigns as PM in 1782
• King forced to come to terms with men whom he had long regarded his opponents, after a revolt of independent members of the House of Commons, and to form a new ministry under Lord Rockingham in March 1782
  -March 1782 Rockingham and Lord Shelburne and supporters given cabinet jobs (A Broad Bottom Government) - Rockingham dies and ministry very divided
• Shelburne (unpopular) administration- Pitt took office for first time as Chancellor of the Exchequer
• after 6 weeks of no government, George III had to give way and accept a government led by the Duke of Portland, including Fox and North
  -East India Bill- suggested that a body of 7 commissioners for India should be set up and appointed by parliament
• bill lost and king dismissed Fox-North coalition and Pitt seals office at the age of 24

Question 2

How did Pitt rise to power?

Question 3

What were Pitt’s initial problems?

Answer 3

• finance- how to pay off debt- £456m by 1801
• foreign policy- allies and prestige
• modernising the state
• reform- how far and what?

Question 4

Why did Pitt reform finance and administration?

Answer 4

• pressure from the country- defeat in the American war- indication of British government as ineffective
• many wars in the 18th century and increased government corruption
• national debt
• desire for cheaper, more efficient government

Question 5

What was Pitt’s financial solution?

Answer 5

• reintroduced the sinking fund in 1786- £1m a year to be set aside from taxation, which special commissioners would use o buy government shares
• public debt reduced by £10m in 1793
• in 1792 a new sinking fund was set up alongside the old one - this was financed by a levy on all new loans made to the state
• However, war broke out in 1793- government borrowing rose - only worked in peacetime

Question 6

What was Pitt’s holistic approach to increasing income by £4m by 1792?- taxation

Answer 6

£1m- NEW TAXATION- luxuries taxed (paper, silver, bricks, tiles), tax on retail shops introduced in 1785(however repealed due to rioting), luxuries n the rich were taxed more heavily

Question 7

What was Pitt’s holistic approach to increasing income by £4m by 1792?- collection

Answer 7

£1m- BETTER COLLECTION (reduce spending)- Attacks smuggling trade, Pitt slashes duties (tea, wine, spirits), reduced import duty on tea (119%-25%), encouraged more to avoid heavy penalties of smuggling and pay the duty
- establishment of ‘consolidation fund’- all customs duties were paid and measures to combat fraud were put in place
- number of government jobs reduced - ‘retrenchment’
- higher pay for officials- reduced corruption
- reduction in number of sinecures
- Hovering Act of 1787- extended jurisdiction of customs officers to search ships 12 miles offshore rather than 6 miles

Question 8

What was Pitt’s holistic approach to increasing income by £4m by 1792?- economy

Answer 8

£2m- ECONOMIC GROWTH- due to peace- country not at war- economically recovered
- industrial revolution- period of take off
- Henry Cort- reverbatory furnace
- Thomas Telford- road and bride builder

Question 9

How successful were Pitt’s financial reforms?