Edward VI - Economy

What had increased under Henry VIII?

Rate of inflation - marked reduction in real wages especially for those of the lower pay spectrum

Why had the rate of inflation increased under Henry VIII?

• population increase from 1525 - more food needed, rich richer, poor poorer

• agriculture prices had raised - growth in engrossing

• debasement of the coinage created a short-term artificial bloom in 1544 & 1545 - causing inflation & impacted real wages

• growing number of unemployed

• more homelessness: engrossing

• impact of enclosure - could not be managed even 1534 legislation to limit sheep ownership was ineffective

How did Somerset follow in Henry VIII’s legacy in terms of his economic policies?

continuing of Henry VIII’s legacy of debasing the coin - fund war against Scotland

• raised £537,000 heightened inflammatory pressure and added social issues

What happened in 1548 which led to more pressure on Somerset?

poor harvest

What are 3 economic factors which helped bring about discontent during Somerset’s period of rule?

• inflationary pressure

• agrarian issues - particularly enclosure & harvest failures

• taxation

Who influenced Somerset’s social and economic policies?

John Hales

How did John Hales influence Somerset’s social and economic policies?

claimed enclosure was the root cause of many of the countries social and economic problems

What did Somerset do, similar to Wolsey, about enclosure?

agreed to set up a commission to investigate the problem - issues a proclamation against enclosure

What was the outcome of Somerset’s commission against enclosure?

enclosure commissioners were duly appointed, but little was achieved

• only raised expectations of the poor and annoyed landowners

despite controversy - rate of enclosure seemed to have slowed down

How did taxation cause discontent amongst England under Somerset?

money raised to pay for Scottish war - mostly financed by land sales and borrowing

• added long-term problems of crown finances

How did the Taxation for the Scottish War increase the amounts of enclosure?

perceived that profits which could be gained by converting land from arable to pasture used to graze large flocks of sheep

• provide wool and cloth for the export markets

What did Somerset introduce to try to solve the problem of enclosure?

Sheep tax

When did Somerset introduce his Sheep tax?

March 1549

What was Somerset’s intention with the introduction of a Sheep tax?

intended to deter the conversion of arable land to pasture - as well as enclosure and driving out the poor: application made some social sense

• e.g. East Midlands proved a significant burden to hill farmers who struggled to make a living from sheep farming on highlands such as Exmoor and Part moor

Did Northumberland continue Somerset’s anti-enclosure measures?

No - commissioners withdrawn & sheep tax removed in 1550

• existing Enclosure legislation was enforced

Which act of Somerset’s did Northumberland repeal?

Vagrancy Act

• care for disabled was retained

By 1551, what had Northumberland’s government taken action to do?

control stocks of grain - relieve the bad harvest crisis

What was the Northumberland’s Treason Law in 1550?

used Lord Lieutenants and retainers of trusted nobles to keep order

Did Northumberland continue cointage?

Yes - Northumberland told people to lower prices and to trust coinage without giving a reason to do so

• by April 1552 - decision was made to end debasement

What happened alongside Northumberland’s decision to end debasement?

• drastic reductions were made in military and household spending

• foreign policy helped along with enquiries into stricter methods of household spending - emergency household fund: Privy Coffer was established

When was Crown debt at its worse?

1550

How much debt was the Crown in by 1550?

£300,000

By 1553, had Crown debt reduced?

Yes - 180,000

How did Northumberland reduce the Crown debt by 1553?

• selling of crown and chantry lands - when sold land did not contribute to the Crown anymore

• parliamentary taxes, debasement up until 1551 and stopping fewer debts was necessary

In 2 and ½ years what had Northumberland achieved in terms of England’s financial position?

financial situation improved, but not solved

• confidence in the currency not fully restored

• government spending was better & reduced debts - weakened the governments financial position

What was Henry VIII’s financial legacy?

left his son in financial ruin

What were the 3 main problems of Henry VIII’s financial legacy?

• debasement

• heavy expenditure

• debt

What was Henry VIII’s financial legacy of Debasement?

1544 began large-scale debasement of coinage - short-sighted way for government to raise large sums

• led to inflation

What was Henry VIII’s financial legacy of Heavy Expenditure?

huge sum raised by the dissolution of monasteries had been eaten away by the greater cost of war against France and Scotland (1540s)

• by 1547 almost ½ of the land had been solved - no longer supplement ordinary income

What was Henry VIII’s financial legacy of Debt?

Henry borrowed heavily at home and aboard - e.g. owed £100,000 to the Antwerp money market

Did Somerset attempt to reform the Government’s finances?

No - overriding concern with the Scottish war led him to continue heavy military expenditure

• 1547 & 1549 campaigns in Scotland cost £508,393 and Boulogne continued to be fortified

• policy of debasement was continued

Did Northumberland attempt to reform the Government’s finances?

Yes - showed determination to get the Crown’s finances back on course

Who was appointed as Lord Treasurer in February 1550?

William Paulet, Marquis of Winchester - task of reforming finances

What were the 3 government plans, outlined in June 1551, to help England’s finances?

• to end debasement

• reduce expenditure - matched income and allowed King to ‘live on his own’

• ‘to have His Majesty out of debt’

How did Northumberland deal with the government plan of Ending Debasement?

Proclamations were issues to reduce the value of the coinage in 1550 - decision to end debasement was not taken until April 1551

How successful was Northumberland in dealing with the government plan of Ending Debasement?

Even in April 1551- Northumberland did not dare call in the debased coinage - told people to lower prices and trust coinage without giving them a reason to do so

• collapse of Antwerp market in 1551-52 caused further economic problems (cloth trade)

How did Northumberland deal with the government plan of Reducing Expenditure?

drastic reductions were ordered in military and household expenditure

• Boulogne returned to France or £133,333

• Garrisons withdrawn from Scotland - Navy and on fortifications continued

• Emergency household fund: privy coffer

How successful was Northumberland in dealing with the government plan of Reducing Expenditure?

faced difficulty of needing to keep a tight grip on the finances and rewarding supporters with grants and advantageous sales of lands, and ordinary income was not increased

• although expenditure was pruned - not realistic in the mid-sixteenth century for a king to ‘live of his own’

How did Northumberland deal with the government plan of Debts?

debts at worst in 1550 at £300,000 → reduced to 1553 by £180,000

• containing sales of Crown and chantry lands

• parliamentary taxes

• debasement up to 1551

• Sir Thomas Gresham - paid off royal debts on the Antwerp market

Why was Sir Thomas Gresham significant in helping Crown debts?

Gresham authorised to pay off royal debts on the Antwerp market

• showed great energy and ingenuity - crossed the channel 40 times in a few months & manipulating the exchange to improve the worth of sterling

so successful - paid off all of the Government’s Antwerp debts in two years and renegotiated the loans at 12% interest, whereas the Emperor was borrowing at 16%

How successful was Northumberland in dealing with the financial and economic problems?

managed to improve the Government’s position significantly and go a long way towards achieving his three initial objectives

• ended debasement - did not take measures to restore full confidence in the currency

• reduced the Government’s expenditure - forced by political necessity to compromise in order to reward his supporters

• reduced the debt - weakened Government’s long-term financial position