Two. Pitt as Prime Minister Flashcards
Why was Pitt made Prime Minister in 1783?
There was a crisis in 1782 which ended with Charles James Fox and Lord North bringing PM Shelburne down. George refused to comtemplate any Whigs so made Pitt PM (who had made a good impression as Chancellor of Exechequer)
Why was Pitt’s government called a ‘Mince Pie Administration’?
People believed it wouldn’t survive beyond Christmas. Pitt had no following in the commons and had a weak government. He only survived because of support from the King, Fox losing support, and his own determination.
How did Pitt deal with National Debt?
National Debt was 16 times the government’s annual revenue. Pitt set up the Sinking Fund in 1786 which he paid £1 million a year into from taxation. It cut debt by 10 million and helped restore national confidence.
Successful peacetime policy however not a wartime policy.
What were Pitt’s beliefs surrounding trade?
Was interested in adopting free trade as a policy, believed it would boost economy. He believed Britain’s system of tariffs was outdated and restricted the development of trade and industry. Tariffs meant that smuggling flourished and government revenue was reduced. The loss of the American colonies had impacted on trade because Britain had lost beneficial trading rights and this highlighted the need for change.
How did Pitt get more money for the government?
Pitt introduced new indirect taxes. He needed to do this because the Consolidation act had reduced the government’s revenue. He added taxes on windows, bricks and maid servants (used by the wealthy). It was considered genius by some, ridiculed by others. Also window tax limited development of glass industry.
What did Treaties did Pitt make?
1786, Treaty with France where they would both reduce duties on imports (but French Revolution was 1789). Objective was to increase the flow of trade between them.
Pitt attempted one with Ireland but was opposed, British manufacturers feared competition as Irish wages were low.
How did Pitt improve the government efficiency?
- Abolished many of the hundreds of sinecure offices, mainly by allowing them to collapse so not to provoke opposition (position with salary but not work)
- Created a Consolidated Fund at the Bank of England into which revenue received from taxes was paid and out of which government payments were made
- Established Audit Office to oversee public expenditure and curb corruption
- Abolished system of free post for mps
- Reorganised cabinet
The result of these measures was to create a much more efficient administration, cut duplication of labour, bring orders and method into government business and cut unnecessary expenditure.
Why did Pitt resign in 1801?
George 111 refused to accept Catholic Emancipation.
Who were Pitt’s successors?
Henry Addington 1801-1804 Pitt 1804-1806 Grenville 1806-1807 Duke of Portland 1807-1809 Spencer Perceval 1809-1812 Lord Liverpool 1812-1827
What did Pitt do to improve trade
Lowered, simplified or removed customs duties on imports and exports in 1787 consolidation act. It increased the volume of legitimate trade but reduced income from taxation. A book of rates published the rate of duty for each item. Changes made the collection of taxes easier and more efficient. High taxes paid on tea, wine and tobacco decreased which reduced smuggling.
What administrative problems where there?
- The roles of various ministries overlapped
- MPs took advantage of privileges such as free post (as postal costs were high)
- Significant corruption among government ministers, who enriched themselves from public funds
- No proper system for checking government accounts
- Government loans system was corrupt as ministers allowed their friends to raise loans at high rates of interest.
