Pitt's financial reforms

I do NOT understand the economy... but Pitt did (until war broke out)

When and what was the sinking fund and how well did it work? (YEAR)?

1786

A fund into which £1 million of tax money was to be paid each year to tackle national debt which had reached an all time high of £240 million

It initially cut national debt by £10 million but failed as a wartime policy

What economic policy was Pitt interested in (CLUE: developed by Adam Smith)?

Free trade

When and what was the consolidation act and how effective was it?

1787

simplified and reduced excise duties (indirect tax) on goods such as tea and tobacco.

It lessened the attractiveness of smuggling, a huge issue when Pitt entered office.

When and what was the hovering act and how effective was it?

1787

Allowed authorities to confiscate ships carrying smuggled goods

It lessened the attractiveness of smuggling, a huge issue when Pitt entered office.

What are indirect taxes?

Taxes for the ownership of certain goods such as candles and windows.

When and what was income tax and how were different incomes taxed?

1799

Introduced to fund the French war and all annual incomes over £200 were taxed at 10 per cent.

Incomes between £60 and £200 were taxed at a graduated rate from just under one per cent to 10 per cent.

Any incomes under £60 were exempt

When and what was the eden treaty (and why did it fail)?

1786

A treaty that secured free trade between France and Britain

It failed when the French revolution started in 1789 and the 2 countries went to war in 1792

What was the combined outcome of these reforms? (3)

By 1793, annual government revenue had increased by £4 million

Value of imports and exports doubled

Smuggling became unprofitable

When was the duty on tea reduced individually and by how much?

1784

119% to 25%

In 1801 and 1811, how much tax revenue was gathered from customs and excises?

1801- 55%

1811- 57.3%