Flashcards in Chapter 2: Pitt's Administrative Reorganisation Deck (10):
Why was it necessary to reorganise the machinery of the government?
It was inefficient and in need of overhauling. Essential to reorganise to carry through his financial reforms.
How was government inefficient?
No set procedures for day to day business of government, meaning confusion and inefficiency e.g the roles of various ministries overlapped. MPs took advantages of privileges such as free posts- postal costs were high. Corruption among government ministers- enriched themselves from public funds through sinecure offices and pensions. No proper system for checking government accounts. Loans system corrupt as ministers allowed their friends to raise loans at high rates of interest.
What was a sinecure office?
A way in which government ministers enriched themselves (as well as pensions). A sinecure office was a position with salary, handed out to gain their support, but required little or no work.
What did Pitt do with Sinecure offices?
He abolished many of the hundreds of them, mainly by allowing them to lapse, so as not to provoke opposition. However, he set an example by refusing the lucrative sinecure of Clerkship of the Pells, worth £3000 a year.
What new budgeting system did Pitt set up?
He devised a new budgeting system by taking estimates of expenditure rom each government department and drawing up parallel tax proposals. This system is still in place today.
What Consolidated Fund at the Bank of England did Pitt set up?
He 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.
What was the Audit Office Pitt set up?
Run by independent experts to oversee public expenditure and thus curb corruption.
What did Pitt do to the system of free post?
What did Pitt do to the Cabinet?
Reorganised it and established the Prime Minister's office as being the most important.