Pitt's finance and administrative reforms
- Created by: charlotteMatteo
- Created on: 18-05-18 12:01
View mindmap
- Peel's finance and administration reforms
- How successful were the financial reforms
- Success
- Gap between government income and expenditure had turned into s narrow surplus 1792
- Income from taxation rose sharply
- A fairer tax burden since many taxes affected only the rich before
- Gap between government income and expenditure had turned into s narrow surplus 1792
- Not success
- reluctant to dismiss those who held sinecures
- He waited for them to die
- Biggest financial achievements owed a lot to peace
- reluctant to dismiss those who held sinecures
- Success
- Administration
- It was small
- Majority of employees worked in customs and excise
- Resources were often inefficiently deployed
- Some government departments were over-manned
- It was small
- Administrative reforms
- Reformed it from within
- Appointed strong administrators to take charge of departments
- 1784-tackled independence of East India trading company
- India act 1847
- Greater government involvement by establishing a board of control
- Responsible for scrutinising the company's activities
- Greater government involvement by establishing a board of control
- India act 1847
- Gradually abolished sinecures
- sinecures were abolished by 1806
- Reformed it from within
- Why reform finance and administration
- Reforms between 1784 and 1792
- Pressure from the country- defeat in American war showed that the British government was ineffective
- Servicing an ever-growing national debt
- Eating up an increasing proportion of government income
- Pitt's reputation was based on a desire for cheaper government
- Eating up an increasing proportion of government income
- The Financial situation
- National debt risen from £127 million in 1775 to £243 million in 1784
- Increased by 91 percent during war years
- 1793 war with France
- By 1801 the debt had risen to £456 million
- Concerns about corruption continued
- interest on the debt was thought to be for the benefit of the privileged few who could secure government contracts of jobs
- National debt risen from £127 million in 1775 to £243 million in 1784
- The Sinking fund
- Introduced in 1786
- One million pounds a year was to be set aside from taxation
- Public debt reduced by £10 million in 1793
- New sinking fund set up in 1792
- Dealt with only long term debt
- During the war 1793-1815, money was borrowed at a high rate and paid into the sinking fund
- Reduced debt, but interest paid on existing debt was being paid at a lower rate
- New sinking fund set up in 1792
- Other ways of raising money
- Increases on indirect taxes on a large number of items
- Bachelors, hats, servants and houses
- 1785- Increased tax paid on every male servant
- Bachelors, hats, servants and houses
- The establishment of a 'Consolidated fund'
- All customs duties were paid
- 'Retrenchment' The number of government jobs was reduced
- reduction in the number of sinecures
- Increases on indirect taxes on a large number of items
- How successful were the financial reforms
Comments
No comments have yet been made