TO WHAT EXTENT DID ELIZABETH IMPROVE THE ENGLISH ECONOMY BY 1603?
Financial control- When Elizabeth I came to the throne in 1558, she inherited a difficult financial situation
and a debt of £227,000, half of which was owed to the Antwerp Exchange and Elizabeth had to pay 14%
interest on the loan. Government finances were under strain from the war with France, and the
debasement of the coinage by both Henry VIII and Edward VI. By instinct, Elizabeth was a careful spender
and believed in strict housekeeping. Elizabeth sold crown lands she felt were surplus because this would
help contribute toward building the cash reserve she achieved in 1585. This brought in £600,000
throughout her reign, 3/4 of crown revenue was collected in the Exchequer so they had a better idea of
royal finances and there was less duplication of officials- this was exacerbated by her new role as suprme
governor as she collected a ‘first fruits tax’ on all new ecclestial office holders- this was compounded by her
underpaying of officials and delaying appointments of bishops so the crown could collect church taxes. She
also raised revenue by allowing the last of the monastic properties seized by Henry VIII pass into private
ownership. This then meant that Elizabeth would collect a profit from lands she no longer used, while also
maintaining the loyalty of the wealthy faction who bought the land- this increased revenue from £86,000
to £111,000. This meant that by 1584, she had a surplus of £300,000, having eradicated the debts she
inherited by 1576. Part of her financial control links into foreign policy, part of her cautious approach
stemmed from her recognition that she lacked the money to sustain a war. Elizabeth try to conserve her
finances by using diplomacy rather than open combat. Royal finances were increased by 50% during her
reign, which kept in check with inflation.
However, the one thing Elizabeth failed to do was to address the whole mechanism of finance and the
financial structure of England. This remained essentially unreformed and did not bode well for the reign of
James I. Elizabeth's failure to reform her fathers financial system left the crown underfunded historians
also challenged the idea that the growth in income was a success arguing that Burghley the Lord treasurer
was inefficient are extracting the maximum value from crown assets. In Elizabeth’s reign there was also an
increasing demand for parliamentary taxation. In the 1570’s Parliament was asked to approve subsidy
taxes, even in peacetime, on the grounds that they were necessary for the country’s defence. The outbreak
of war with Spain led to unprecedented demands for taxation, even though Elizabeth’s determination not
to run up large debts influenced her military decisions. As parliamentary taxation was not efficiently
administered the collectors, known as subsidy commissioners, were often corrupt. Ownership records
were often decades out of date, leaving many untaxed. Cecil was too cautious and failed to effectively tax
the gentry and nobility, putting unity and security above increasing taxation.
Governments were forced to sell off more crown land, raising 800k, calling 6 parliaments for taxation after
1585 (13 overall) and sell monopoly rights to fund war with Spain.
Trade and exploration- Elizabeth’s achievement in Extending trade and exploration throughout her reign
was a lasting success in relation to improving England's finances. this saw Elizabeth investing in trade naval
power and empire. Elizabeth's adventurers discovered new sea roots opened up new markets and funded
new trading companies, for example Muscovy company which traded timber with Russia or East India
company which dealt in silk cotton and spices. This growth in trade boosted the English economy making
those invested wealthy. the compounding effects of trade and exploration alongside England’s decreasing
relationship with Spain so English voyages targeting the Spanish attacking and stealing from them. In 1572
Drake attacked Spanish ships Loaded with silver from Peru and seized amounts worth 30,000 pounds. this
continued into 1578 where drakes men attacked Spanish settlement seizing gold jewellery and silk from
the new world making a huge profit, Drake also raided the west cost of Spanish America and captured the
Cacafuego and her cargo of silver. Made a profit of 4,000%. In 1592, the capture of the bullion ship Madre
de Dois in the East Indies meant a return of £80,000. Upon the defeat of the Armada in 1588 England now
had the confidence to expand its empire through colonisation and taking part in the slave trade, (Hawkins)
also made a lot of money, many luxury items and big buildings were built off the back of this. Largely
increased England’s finances as this was a wealthy investment for England’s economy into the 17th century
next to other world powers.
Financial control- When Elizabeth I came to the throne in 1558, she inherited a difficult financial situation
and a debt of £227,000, half of which was owed to the Antwerp Exchange and Elizabeth had to pay 14%
interest on the loan. Government finances were under strain from the war with France, and the
debasement of the coinage by both Henry VIII and Edward VI. By instinct, Elizabeth was a careful spender
and believed in strict housekeeping. Elizabeth sold crown lands she felt were surplus because this would
help contribute toward building the cash reserve she achieved in 1585. This brought in £600,000
throughout her reign, 3/4 of crown revenue was collected in the Exchequer so they had a better idea of
royal finances and there was less duplication of officials- this was exacerbated by her new role as suprme
governor as she collected a ‘first fruits tax’ on all new ecclestial office holders- this was compounded by her
underpaying of officials and delaying appointments of bishops so the crown could collect church taxes. She
also raised revenue by allowing the last of the monastic properties seized by Henry VIII pass into private
ownership. This then meant that Elizabeth would collect a profit from lands she no longer used, while also
maintaining the loyalty of the wealthy faction who bought the land- this increased revenue from £86,000
to £111,000. This meant that by 1584, she had a surplus of £300,000, having eradicated the debts she
inherited by 1576. Part of her financial control links into foreign policy, part of her cautious approach
stemmed from her recognition that she lacked the money to sustain a war. Elizabeth try to conserve her
finances by using diplomacy rather than open combat. Royal finances were increased by 50% during her
reign, which kept in check with inflation.
However, the one thing Elizabeth failed to do was to address the whole mechanism of finance and the
financial structure of England. This remained essentially unreformed and did not bode well for the reign of
James I. Elizabeth's failure to reform her fathers financial system left the crown underfunded historians
also challenged the idea that the growth in income was a success arguing that Burghley the Lord treasurer
was inefficient are extracting the maximum value from crown assets. In Elizabeth’s reign there was also an
increasing demand for parliamentary taxation. In the 1570’s Parliament was asked to approve subsidy
taxes, even in peacetime, on the grounds that they were necessary for the country’s defence. The outbreak
of war with Spain led to unprecedented demands for taxation, even though Elizabeth’s determination not
to run up large debts influenced her military decisions. As parliamentary taxation was not efficiently
administered the collectors, known as subsidy commissioners, were often corrupt. Ownership records
were often decades out of date, leaving many untaxed. Cecil was too cautious and failed to effectively tax
the gentry and nobility, putting unity and security above increasing taxation.
Governments were forced to sell off more crown land, raising 800k, calling 6 parliaments for taxation after
1585 (13 overall) and sell monopoly rights to fund war with Spain.
Trade and exploration- Elizabeth’s achievement in Extending trade and exploration throughout her reign
was a lasting success in relation to improving England's finances. this saw Elizabeth investing in trade naval
power and empire. Elizabeth's adventurers discovered new sea roots opened up new markets and funded
new trading companies, for example Muscovy company which traded timber with Russia or East India
company which dealt in silk cotton and spices. This growth in trade boosted the English economy making
those invested wealthy. the compounding effects of trade and exploration alongside England’s decreasing
relationship with Spain so English voyages targeting the Spanish attacking and stealing from them. In 1572
Drake attacked Spanish ships Loaded with silver from Peru and seized amounts worth 30,000 pounds. this
continued into 1578 where drakes men attacked Spanish settlement seizing gold jewellery and silk from
the new world making a huge profit, Drake also raided the west cost of Spanish America and captured the
Cacafuego and her cargo of silver. Made a profit of 4,000%. In 1592, the capture of the bullion ship Madre
de Dois in the East Indies meant a return of £80,000. Upon the defeat of the Armada in 1588 England now
had the confidence to expand its empire through colonisation and taking part in the slave trade, (Hawkins)
also made a lot of money, many luxury items and big buildings were built off the back of this. Largely
increased England’s finances as this was a wealthy investment for England’s economy into the 17th century
next to other world powers.
