mar 1, 1842 - The 1842 Budget
Description:
Income tax was restored, the first time it had been introduced in peacetime (initially as a temporary 3 year measure). Taxed the rich, avoiding an increase in indirect tax which would have caused popular discontent. Income tax raised over £3 million in in 3 years and paid for the reduction on duties on 750 articles. Peel's government took steps towards free trade. Peel's key aim was increased trade. Tariff reduction would bring down the cost of British goods abroad, making them more appealing and therefore increase exports, stimulate industry, provide more jobs and improve the working classes standard of living.
Peel had inherited a deficit of £1.8 million in 1841 which he turned into a surplus of around £3.4 million by 1844.
Added to timeline:
Peel
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