The National Debt was at £242 million by 1784 due to American War of Independance
> Stopping smuggling
Smuggling was such a profitable business in places such as Cornwall, it ended up costing the country thousands.
1. Pitt introduced the Commutation Act which lowered import duty on tea - an estimated 3 to 4.5 million tons were being smuggled into Britain each year.
2. The Hovering Act allowed smugglers vessels to be searched up to 12 miles out at sea that seemed to be carrying suspiciours cargo.
3. Bonded Warehouses allowed people to store goods in official storages, free of tax, The warehouses were guarded and duty would only be paid when goods were taken out to be sold in Britain.
YES - Imports went up from 13 - 27 million
Government yields went up. Spirits 29%; Wines 63%; Tobacco 39%
4. Pitt believed raising taxes was the best way to raise revenue on the rich (indirectly). Items such as horses, wigs, hair powders and windows were taxed. Lower class were affected by candle tax. Business taxes on cotton textiles, coal and shop tax also were introduced.
5. Improving tax efficiency - the government systems were wasting money in the way they collected…