Introduction

However, in order to support the Hanoverian succession, and maintain the balance of power in Europe, Britain fought too many wars – for example, the War of the Spanish Succession (1702-13) and the War of the Austrian Succession (1740-8). The new, weak government could not impose a lump-sum tax on its subjects in order to finance the wars. Consequently, it resorted to a new system of funding, namely, long-term loans. Because of the ‘Financial Revolution’,2 Britain was able to face her giant rival – France. Furthermore, the new system of funding influenced British political stability and social structure, as well as economic performance.