Exam Question- To What Extent Was William Pitt Successful as Prime Minister

Pitt's main achievements can be split into 5 main events: National debt following the US War of Independence; the need for new taxes; trade reforms;commercial treaties; and reforms in  administration. 

National Debt
Britain's debt increased during the war against America. It created a debt of £240 million, an all time high for Britain. Most of the government's income had to be used to pay £8 million a month in interest because of the debt. However, it eventually got to 16 times what the government was earning. 
Positive Responses

• Sinking fund introduced- £1 million a year to paid using taxes
• This cut the debt by £10 million and restored national confidence 

Negative Responses

• Sinking fund failed as a war time policy as money was not being spent on the war effort on America

New Taxes

Pitt had to increase taxes on things like horses, coaches, windows, bricks, and hats to compensate for the unsustainable reduction to the government's income. It is important to note that all these things were generally commodities enjoyed by the wealthy and aspiring classes.  
Positive Responses

• Many thought it was ingenious- mainly by the lower classes which had no need for most of the things which were taxed highly
• Increased revenue

Negative Responses

• Many also ridiculed Pitt's reforms
• The window tax especially annoyed the people. It was seen as an attack against the need for light and air
• Limited the glass industry as many resorted to bricking up their windows to avoid paying 

Trade Reforms
Britain was using an outdated tariff system in which it was the government's duty to regulate trade (known as mercantilism). This meant that over three quarters of the government's income came from indirect taxes which was an unsteady system. In addition to this, the tariffs caused an increase in smuggling which further weakened the system as it cause a decrease in the government's revenue.
Positive Responses

• Consolidation Act 1787 imposed which removed or simplified outdated or complex systems on imports and exports
• One tax for everything which was much simpler and efficient- Book of Rates published with rate of duty for each item
• Smuggling reduced through increase in taxation on tea, wine and tobacco, and Hovering Act introduced which made smuggling harder
• Excise Bill- tobacco and spirits allowed to enter untaxed and stored in bonded warehouse
• All increased legitimate trade

Negative Responses

• Revenue from taxation reduced which called for taxes to be reformed (as seen above)
• Short term- quickly fixed through new taxes

Commercial Treaties
Britain had made a trade treaty with France in 1786 to encourage a greater flow of trade between them both. However the French Revolution broke out in 1789 which negated all benefits. 
Positive Responses

• Smuggling reduced- became unprofitable
• Restored national credit and public confidence 
• Growth in trade and industry
• Increase in annual government revenue (1793)
• Stronger position in the end for Napoleonic Wars

Negative Responses

• Short term because of French Revolution 

Reforms in Administration

Britain's government is was corrupt and inefficient; there were no set procedures for completing day to day to work which caused confusion. Many roles of ministers overlapped and the MPs took advantage of their privileges and the loop holes.

Positive Responses

• Abolished hundreds of sinecure offices in Parliament
• Set an example by refusing a sinecure job which paid £3000 a year
• Created a  new budgeting system- taking estimates of expenditure from each department, draw up tax proposals of the same amount (still used today) 
• Consolidated fun at Bank of England created- government employees paid through tax revenue 
• Audit Office established- run by independent experts who oversee public expenditure 
• Abolished the use of post for free (a privilege many MPs were taking advantage of)
• Re-organised the Cabinet and established the Prime Minister's office as most superior
• Corruption limited

Negative Responses

• Upset many MPs (short term until it became the norm)

Conclusion

Overall, Pitt's reforms had a very positive impact on Britain, especially in the long term. Many of his reforms are still implemented today, for example the authority of a Prime Minister and many of the other administrative reforms. This shows he was successful as a Prime Minister as his influence was long term and therefore favoured for hundreds of years.

Whilst it can be argued that because his solutions favoured the middle class he was unfair and thus unsuccessful, it is important to note that these particular reforms were put in place to prevent the corruption, loop holes and inefficiency which the upper classes thrived off of. By abolishing certain things (such as the use of free post and sinecure offices) and introducing ones (such as the new taxes), Britain began to prosper, recover from debt, overcome corruption, and prevent smuggling.