The financial problems of James I

James had reduced royal spending by ending the war with Spain in 1604, however, he struggled to keep royal finances healthy

• The country was undertaxed - many nobles undervalued their own wealth in order to reduce their tax burden and the tax collection system was inefficient
• Since 1540, England had been experiencing inflation
• Between 1603-1608, £600,000 was spent on maintaining an army in Ireland
• There was no salaried civil service, so patronage was used as a means of rewarding those who served the King
• James inherited £100,000 in debt
• Court expenses increased under James and he was known for his extravagance

James' sources of income
Ordinary revenue

• Crown…