Were Henry VII’s financial policies key to building his authority?

Financial policies were incredibly important to Henry VII during his reign, particularly in raising revenue. However, this answer argues that the problems caused by his financial policies means that other factors were more important in establishing his authority, particularly his use of foreign policies.

It is clear that Henry was in need of improving the financial management of the crown. When he came to the throne in 1485, the crown finances were badly damaged after so much conflict and turmoil during the Wars of the Roses, and this led to Henry being in a disadvantaged position in terms of raising an army to deal with rebellions in 1486 and 1487. He set out to improve the financial management though chiefly moving from the exchequer to the chamber system. Even though this meant that he needed to be more hands-on with financial management, it also meant that he was able to speed up the process of obtaining funds, and he also was able to increase revenue.

Furthermore, he also oversaw a variety of harsh policies to obtain money from the nobility, as shown in his use of acts of attainder (utilised effectively to punish Yorkist rebels after the battle of Stoke Field in 1487), as well as bonds and recognisances. These bonds were effective in squeezing more money from nobles, and Henry was assisted in this by using Empson and Dudley in the Council Learned in Law. Policies such as these helped Henry increase royal revenue, achieving £113,000 per year by 1509. This financial management provided him with security, due to no longer being reliant on nobles such as the Stanleys, and so it therefore increased his overall authority.

However, it could be argued that his financial policies actually threatened his authority. This can be seen in his desire to obtain parliamentary taxation to fund his attempt to defend to Brittany in the Breton Crisis of 1489 to 1491, as well as in his need to raise an army to deal with the Scottish threat in 1496-97. In both instances the peasanty rebelled against him, in the form of the Yorkshire Rebellion in 1489 and later in the Cornish Rebellion in 1497. Despite putting down these rebellions, Henry was faced with not raising as much as expected (only £27,000 out of an expected £100,000 in 1489) whilst also destabilising his regime.

This destabilisation can also be seen by the reaction of the nobles to his punishing bonds, with some historians – notably Carpenter – arguing that the nobility became hostile and were threatening Henry’s authority by the final years of his reign. It is little wonder that the execution of Empson and Dudley in 1510 was so joyfully greeted by many in England. As such, this shows that Henry’s financial policies were not entirely successful in achieving authority.

There are other relevant counter factors that were more important in achieving Henry’s authority, most specifically the use of foreign treaties. These were able to obtain recognition for the Tudor regime – as happened with the Treaty of Medina del Campo with the Spanish in 1489 – whilst also cementing marriage alliances, as happened with the marriage of Prince Arthur to Catherine of Aragon, as well as the marriage between Princess Margaret and James IV of Scotland as part of the Treaty of Perpetual Peace in 1502.

Furthermore, some of these foreign treaties also had the benefit of raising additional income, as shown with the French pension with the Treaty of Etaples in 1492. More importantly, Henry was able to conclude a favourable trade agreement with Burgundy with the Magnus Intercursus in 1496, which helped resume the cloth trade after a three year embargo. There was also a final key part of the foreign treaties that helped secure Henry’s authority, with foreign monarchs agreeing to no longer support rebels and pretenders to the English throne. This was a key part of Etaples with the French in 1492, and also seen with the Treaty of Ayton with Scotland in 1497. Therefore, foreign treaties helped Henry consolidate his authority on the throne, and did so without the problems caused by raising more revenue with his financial policies.

In conclusion, although Henry’s financial policies were incredibly important in raising revenue and making Henry less dependent on loans and the nobility, they also provoked reactions from the peasantry and created tension with the nobles. It is clear that Henry’s royal authority primarily came from his strong foreign treaties, which helped end support for rebels whilst also strengthening the Tudor dynasty on the throne.