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In 1783 the government expenditure exceeded income by over ?10 million and there was a total collapse of confidence in the government due to the huge national debt. Pitt recognized this and made it his first priority to raise national revenue and increase the confidence of the people. Several of Pitt’s reforms were extremely successful due to this deep understanding Pitt had, and he managed to base many of his reforms on it. Pitt successfully passed the “Commutation Act” in 1784 which reduced the duty on tea, wines, spirits and other general products. This discouraged much of the smuggling which was taking place in and out of Britain, for there was less of an incentive to smuggle with such low taxation...
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