Pitt the Younger Flashcards
(120 cards)
What was the national debt in 1775?
£127 million
How much did the national debt rise in the war years? (American wars)
91%
What was the national debt in 1784?
£243 million
When did war break out with France? What did this do to finance?
1793 (up until this point Pitt managed to avoid adding to the national debt)
What was the national debt in 1801?
£456 million
What was the issue of ‘debt funding’ and what was the issue with it? What was the issue with corruption surrounding the large national debt?
Interest rates were at a high 6% (benefitting those who lent and the privileged few who could secure govt jobs or contracts). There were issues of corruption and the money paid to service the debt was thought to take away from investment in trade, agriculture and business.
What was the parliamentary accounts committee?
A influential group of MPs in the 1780’s who looked at govt spending and income. It proposed many of the reforms Pitt took forward
When did Pitt introduce the sinking fund? What did it entail?
1786
One million pounds a year was set aside from taxes and special commissioners would use this money to buy government shares. The prices of shares were lower than face value so they got a bargain and used the interest rate to buy more stock
Who advocated a sinking fund? Who first used a sinking fund?
Financial expert Richard Price advocated it
PM Sir Robert Walpole first used it
How much had the public debt reduced by 1793 due to the sinking fund?
£10 million
When was a new sinking fund set up along the old one?
1792
What was the long term financial plan in 1792?
For the national debt to be paid off in 45 years
What were the issues with the scheme of sinking funds?
It dealt only with long term debt. Short term debt increase £7 million between 1783 and 1793.
It only worked in peacetime
Sinking fund continued until 1829 but was ineffective in war (1793-1815) in war borrowing had to rise so debt reduction was tricky
When was the war with the French?
1793-1815
When was Pitt’s Hovering Act of 1787? What did it change?
Extended a previous measure of 1780, set up in 1787
Customs Officers could search ships 12 miles off shore rather than the previous 6 miles
What things did Pitt increase indirect taxes on?
Bachelors, hats, servants, wig powder, dice, houses (1785 introduced tax paid on male servants and introduced tax on female servants, provision for bachelors to pay more than married households)
What new taxes did Pitt introduce?
Paper duties, carriages, silver and gold plate, beer licenses, bricks and tiles, saddle horses and silk imports
When did Pitt introduce his original idea of taxes on retail shops? What was the effect?
Introduced in 1785
Causes rioting by those who fear price increases
Repealed in 1789
What did Pitt do to attack the smuggling trade?
Hovering act
Reduced high import duties on wine, tobacco and tea (which went from 199% to 25%) encouraging people to avoid heavy penalties for smuggling and pay the tax- raises govt income
What tax policy did Pitt put in place to relate taxes to the ability to pay?
Window tax
Taxes on luxuries
What was the ‘consolidated fund’?
All customs duties were paid into it and measures to combat fraud were put in place.
What was ‘retrenchment’?
The number of govt jobs reduced
Example by early 1790’s nearly 750 fewer excise duties were in place
Why did Pitt give higher pay to officials?
It reduced corruption and provided incentives to collect all due taxes
When was the money going to the royal family reduced? How?
1786
By reform of the ‘civil list’