challenges at home (1558)

• what was the crowns annual income

  £286667
• over £100000 of the crowns debt was owed to foreign money lenders (the Antwerp exchange) which charged at high interest rates at 14%
• Mary tudor sold off Crown lands to pay for wars with France so Crowns income from rent was failing
• Elizabeth needed money t remain secure on the throne as she could use it to reward her supporters
• since 1540 the crown debased the coinage reducing its silver and gold content in order to make more money causing inflation
• how could monarchs raise money

  -rents from there land

  -taxes from trade

  -special additional taxes

  -known as subsides had to be agreed by parliament

  -profits of justice

  -loans
• raise taxes (+/-)

  • the queen could convene parliament and ask for subsides
  • Additional taxes would be unpopular with ordinary people increasing risk of unrest
• improve quality of money by increasing the gold and silver content in the coinage (+/-)

  • in1560 Thomas Gresham the crowns financial adviser suggested this to William Cecil however the crown was slow to respond
  • any 'new' coinage would be traded alongside older less valuable coins people would struggle to exchange older coins for new ones
• effects of Elizabeths policies

  in spite of elizabeths careful management of the crowns finances there was limited reform there was an increase in struggle for poor and the wealthy benefited
• what Elizabeth did

  • she did not raise taxes but hoarded her income and cut her household expenses by half
  • she sold crown land raising £120000 by 1574 the queen could claim that the crown was out of debt for the first time since 1558