Finance

Question 1

“Financial Revolution”

Answer 1

Fiscal control was put firmly in hands of political nation rather than Crown
- Commons established Commission of Public Accounts 1690, monitoring how revenue was spent by Crown
- Commons kept William underfunded ensuring he and Anne had to keep Parliament almost continuously in session
- Taxes, although burdensome, were legitimate and paid- on average brought revenue of £5 million
- Civil List 1698- granted revenues of £700,000 a year
- Million Loan act 1693 and Bank of England 1694

Question 2

Land Tax

Answer 2

1692
- Land Tax
- Kept war against France fundable, but caused resentment with standing army later on

Question 3

Million Loan act

Answer 3

1693
- origin of National Debt
- William allowed to raise loan of £1 million with guaranteed repayments out of parliamentary tax

Question 4

Bank of England act

Answer 4

1694
- Government obtained access to credit guaranteed by Parliamentary taxation
- Whig businessmen in London joined to lend £1.2 million with yearly interest 8%
Tories heavily opposed it; Dutch was only other nation with national bank, too republican
- Successful
> 1697 allowed to increase capital stock by £1 million
> Given monopoly of joint-stock banking until 1710

Question 5

Window Tax

Answer 5

• 1696
• introduced by Whigs
• Caused resentment in addition to keeping land tax high; war had not brought great benefit to England
• Theoretically meant to provide tax relief for poor, causing resentment from higher classes

Question 6

East India Bill

Answer 6

• 1698
• Secured by Whigs
• Loan of £2 million