Editing Robert Peel (section)

===Economic reforms===
Peel finally had a chance to head a majority government following the election of July 1841.<ref>Adelman, ''Peel and the Conservative Party: 1830–1850'', 24.</ref> Peel came to office during an economic recession which had seen a slump in world trade and a budget deficit of £7.5&nbsp;million run up by the [[Whig (British political faction)|Whigs]]. Confidence in banks and businesses was low, and a trade deficit existed.
	
To raise revenue Peel's 1842 budget saw the re-introduction of the [[Taxation in the United Kingdom#History|income tax]],<ref>Adelman, ''Peel and the Conservative Party: 1830–1850'', 35–36; Ramsay, ''Sir Robert Peel'', 227; Read, ''Peel and the Victorians'', 112.</ref> removed previously at the end of the [[Napoleonic Wars]]. The rate was 7d in the pound, or just under 3 per cent. The money raised was more than expected and allowed for the removal and reduction of over 1,200 [[tariff]]s on imports including the controversial [[sugar duties]].<ref>Adelman, ''Peel and the Conservative Party: 1830–1850'', 37; Ramsay, ''Sir Robert Peel'', 235; Read, ''Peel and the Victorians'', 113–14.</ref> It was also in the 1842 budget that the repeal of the [[corn laws]] was first proposed.<ref>Adelman, ''Peel and the Conservative Party: 1830–1850'', 35–36; Read, ''Peel and the Victorians'', 112–13.</ref> It was defeated in a Commons vote by a margin of 4:1.

The [[economic historian]] [[Charles Read (historian)|Charles Read]] has analysed Peel's economic policies as:<blockquote>(i) Fixing the value of British currency to a [[gold standard]], with the paper pound currency freely convertible to gold.

(ii) A limited [[banknote]] supply based on a fixed relationship to the [[Gold reserves of the United Kingdom|gold reserve]].

(iii) Free movement of bullion flows from 1819 and lower import tariffs on food and raw materials from 1842 (often loosely referred to as [[free trade]]).

(iv) Control of interest rates and a balanced [[budget]] in order to reduce the [[national debt]].<ref>{{Cite book |last=Read |first=Charles |url=https://www.worldcat.org/oclc/1365041253 |title=The Great Famine in Ireland and Britain's financial crisis |date=2022 |isbn=978-1-80010-627-7 |location=Woodbridge |pages=71 |oclc=1365041253}}</ref></blockquote>