williams wars, financial revolution

9 Year War

• ‘88-97

• League of Augsburg - alliance, to limit France’s territorial expansion

• wi justified british involvement - eg french privateers attacked eng ships

  • actual motives - support his Dutch army, limit james chance of attacking eng

• french backed Jacobite risings ireland/scot = interpreted as extension of war

why did the war → william-parl tensions?

• war yrs = whig junto controlled govt policy

  • hard for parl to ⭣ british involvement

  • tories/non juntos opp want ⭣ army

• wi committed millions to war effort

  • by end govt debt = nearly £17m

  • ⭢ bankruptcy

how did war → restructuring of govt finances?

• william raised/intro new taxes + est new system of long term borrowing

• royal income doubled after ‘88 (lots money coming in) ⭢ system restructured

taxes

• total amount raised war yrs = £40m

• goods - stamped paper, salt, tobacco pipes

• land tax ‘90 - raised c 1/3rd war funds, caths pay double

• poll tax - every adult, raised no. times

  • v unpopular

• marriage duty act ‘95 - marriages, burials, christenings

  • unpopular, x enforceable

  • marriage - low status ppl = a few pence, nobles = £50

  • ended ‘96, only raised £50,000

• window tax ‘96 - no. windows in house, every adult

  • intro too late to have sig effect funding

  • later became important source govt income (x abolished til mid 1800)

• raising taxes = x revolutionary

govt borrowing - million loan act

• ‘93 - to raise £1m

• sought money from investors

• repayment guaranteed from duties on goods

• helped create a national debt (amount of money country owes to its creditors) - turning point

  • shift toward institutionalized public finance

govt borrowing - bank of england

• ‘94 tonnage act - proposed charles motague

  • passed bc had parl backing

• est national bank

• to attract investors - if paid loan wld became shareholders in bank

  • formalised ways investors cld give money to crown

• greatest long term impact

• grad took over military funding affairs

• opened branch Holland

• limitation - long term lending accounted for less than 1/2 money borrowed during war

⭡ public scrutiny of govt finance

• lots money raised ⭢ parl started investigating expenditure

• ‘90 Public Accounts Commission - made of mps (voted for)

  • power to interrogate ministers, scrutinise govt papers (accountability)

  • published reports (transparency) - frequently exposed corruption wi court

• members responsible to parl rather than king – forerunner to modern day select committees

• speaker (Sir John Trevor) expelled for accepting bribes

  • x longer able to use bribery to get promoted in hoc

  • need pol skill to become mp

limitations

• court officials cld refuse to show papers/answer q’s

• began being used to attack unfavoured ministers

• william blocked any further commissions ‘97

  • + later attempts to renew it = unsuccessful

Civil List Act

• ‘98

• gave king income of £700,000 per yr from duties on wine

  • any surplus only granted w parl consent

• funding = only for govt expenses (eg civil servant salaries)

  • military/naval expenditure needed parl consent

• king had to call parl regularly to renew civil list