William Pitt The Younger - First Ministry

First Ministry

His administration secure, Pitt could begin to enact his agenda. His first major piece of legislation as Prime Minister was the India Act 1784, which re-organised the British East India Company and kept a watch over corruption. The India Act created a new Board of Control to oversee the affairs of the East India Company. It differed from Fox's failed India Bill 1783 and specified that the Board would be appointed by the King. Pitt was appointed, along with Lord Sydney who was appointed President. The Act centralised British rule in India by reducing the power of the Governors of Bombay and Madras and by increasing that of the Governor-General, Charles Cornwallis. Further augmentations and clarifications of the Governor-General's authority were made in 1786, presumably by Lord Sydney, and presumably as a result of the Company's setting up of Penang with their own Superintended (Governor), Captain Francis Light, in 1786.

In domestic politics, Pitt also concerned himself with the cause of parliamentary reform. In 1785, he introduced a bill to remove the representation of thirty-six rotten boroughs, and to extend in a small way, the electoral franchise to more individuals. Pitt's support for the bill, however, was not strong enough to prevent its defeat in the House of Commons. The bill introduced in 1785 was Pitt's last parliamentary reform proposal introduced in Parliament.

Another important domestic issue with which Pitt had to concern himself was the national debt, which had increased dramatically due to the rebellion of the American colonies. Pitt sought to eliminate the national debt by imposing new taxes. Pitt also introduced measures to reduce smuggling and fraud. In 1786, he instituted a sinking fund to reduce the national debt. Each year, £1,000,000 of the surplus revenue raised by new taxes was to be added to the fund so that it could accumulate interest; eventually, the money in the fund was to be used to pay off the national debt. The system was extended in 1792 so as to take into account any new loans taken by the government.

Pitt sought European alliances to restrict French influence, forming the Triple Alliance with Prussia and the United Provinces in 1788. During the Nootka Sound Controversy in 1790, Pitt took advantage of the alliance to force Spain to give up its claim to exclusive control over the western coast of North and South America. The Alliance, however, failed to produce any other important benefits for Great Britain.

In 1788, Pitt faced a major crisis when the King fell victim to a mysterious illness, a form of mental disorder that incapacitated him. If the sovereign was incapable of fulfilling his constitutional duties, Parliament would need to appoint a regent to rule in his place. All factions agreed the only viable candidate was the king's eldest son, HRH The Prince George, Prince of Wales. The Prince, however, was a supporter of Charles James Fox; had he come to power, he would almost surely have dismissed Pitt. However, he did not have such an opportunity, as Parliament spent months debating legal technicalities relating to the Regency. Fortunately for Pitt, the king recovered in February 1789, just after a Regency Bill had been introduced and passed in the House of Commons.

The general elections of 1790 resulted in a majority for the government, and Pitt continued as Prime Minister. In 1791, he proceeded to address one of the problems facing the growing British Empire: the future of British Canada. By the Constitutional Act of 1791, the province of Quebec was divided into two separate provinces: the predominantly French Lower Canada and the predominantly English Upper Canada. In August 1792, George III appointed Pitt to the honorary post of Lord Warden of the Cinque Ports. The King had in 1791 offered him a Knighthood of the Garter, but he suggested the honour go to his elder brother, the second Earl of Chatham.