Pitts Reform 1784

Question 1

What was the sinking fund in 1786?

Answer 1

-The sinking fund was a way of reducing government debt by accumulating money this was because there was national debt standing at 240 million due to the lose of American colonies.
-commissioners were appointed to ensure the sinking fund ran efficiently and that if was not subject to crisis management normally used to overcome a government revenue shortfall
-in peacetime it worked well and by 1793 the national debt had been reduced by around 10 million
*however due to the outbreak with France in 1793 it naturally mean the national debt rose and the idea of the sinking fund became less attractive which led to be abandoned by Lord Liverpool in the 1820s

Question 2

What did Pitt introduced to cut down smuggling

Answer 2

• Pitt introduced the commutation act which was designed to lower the import duty on tea and therefore make smuggling less profitable
• Pitt introduces the hoovering act which allowed smugglers vessels to be searched up to 12 miles out to sea ( made it more efficient which led to an increase in the value of food and raw materials imports)

Question 3

What were Pitts administrative policy ?

Answer 3

-administration reforms were introduced to cut out waste and to improve efficiency in the running government
-Pitt was also a firm believer of government running talent and ability rather than a birth, background and inheritance
- in 1784 Pitt introduced the india act this was designed to primarily to remove the exclusive right the east india trading company had in the financial administration of this ever-growing and profitable area to empire. A broad of control was set up to scrutinise the east India company
*however it did not solve all the problems it was intended to as the east India company still retained a larger financial and political stake in the running of British india administration

Question 4

Pits administration reforms part 2 ?

Answer 4

• Pitt made some important changes in government structure, he abolishes many of the hundreds of sinecure offices, mainly by allowing them to lapse so not to provoke opposition
  -he devised a new budgeting system by taking estimates of expenditure from each government department and drawing up parrales tax proposals which is a system that is still used till today
  -he established an audit office run by independent experts to oversee public expenditure and thus curb corruption
  -he set up a central stationary department to supply public departments instead of them purchasing high cost goods from ‘friendly’ suppliers
• government loans were realised by public tender and so were genuinely competitive
• the result of these measures was to creates a much more efficient administration, cut duplication of labour, bring order and method into government business and cut unnecessary expenditure