The Financial Settlement

As Will brough Eng into the war on the side of the Dutch, spending increased drastically. Average annual was £5.4 million yet tax revenue was just £3.6 million. 

To pay a land tax was introduced in 1692 and yielded £1 mill in its first year. New taxes were also introduced on imported items such as tea, tobacco and alcohol. Not enough, crown resorted to taking out long-term loans from merchants and city traders. 

• 93, Will received £108,000 from investors with an interest rate of 10%. 
• Other loans in 94 and 97 a 'malt lottery' was created whereby benefits were paid to investors from excise taxes on malt. 
• Bank of England set up in 94. 
• System of public credit led to the creation of national debt which stood at 16.7 mill in 98. Repayments took up 30% of the Crown's annual revenue. 

The Civ list was passed in 98 giving Will a fixed income of £700,000 a year to meet expenses of his gov. King and P had to meet regularly in order to renew the following year. 

Concerns from MPs on the money being spent led to parliamentary commissions being set up: 

• 90, Will agreed to Public accounts act annd the first commissions were set up in 91.
• Commissions were the forerunner to modern-day select committees within P. 
• They had the power to interrogate ministers and call for papers from gov. 
• Commissioners published reports which could expose corruption and waste at Will's court. 
• Scrutiny was carried out with unpresendented attention to detail. Meeting took place daily and interviews were carried out. 
• Commissions were used to attack unpopular ministers such as the Speaker Trevor. 
• Commissions were renewed each year until 87 when Will blocked more from being established.