Economic reforms Peel finally had a chance to head a majority government following the election of July 1841. Peel came to office during an economic recession which had seen a slump in world trade and a budget deficit of £7.5 million run up by the
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
income tax, 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
tariffs on imports including the controversial
sugar duties. It was also in the 1842 budget that the repeal of the
corn laws was first proposed. It was defeated in a Commons vote by a margin of 4:1. The economic historian
Charles Read has analysed Peel's economic policies as:(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 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.
Domestic policy Health A Board of Supervision was established, and two measures passed, under which county asylums were erected and prompt medical treatment was ensured. In addition, it was provided "that a certificate of insanity, signed by two disinterested doctors, had to be presented before any person was confined to an asylum." According to one study, "the whole treatment of lunacy was humanised and lifted out of the atmosphere of profits into that of curative effort and civic responsibility."
Factory Act Peel's promise of modest reform was held to, and the second most famous bill of this ministry, while "reforming" in 21st-century eyes, was in fact aimed at the reformers themselves, with their constituency among the new industrial rich. The
Factory Act 1844 acted more against these industrialists than it did against the traditional stronghold of the Conservatives, the
landed gentry, by restricting the number of hours that children and women could work in a factory and setting rudimentary safety standards for machinery. This was a continuation of his own father's work as an MP, as the elder Robert Peel was most noted for the reform of working conditions during the first part of the 19th century. Helping him was
Lord Shaftesbury, a British MP who also established the
coal mines act.
Assassination attempt In 1843 Peel was the target of a failed assassination attempt; a criminally insane Scottish woodturner named
Daniel M'Naghten stalked him for several days before, on 20 January, killing Peel's personal secretary
Edward Drummond thinking he was Peel, which led to the formation of the controversial
criminal defence of insanity.
Corn Laws , the then–prime minister. This law was made to amend the laws for regulating the importation of corn. This act was still in effect by the time Peel became prime minister himself in 1841. The most notable act of
Peel's second ministry, however, was the one that would bring it down. Peel moved against the landholders by repealing the
Corn Laws, which supported agricultural revenues by restricting grain imports. This radical break with Conservative
protectionism was triggered by the
Great Irish Famine (1845–1849). Tory agriculturalists were sceptical of the extent of the problem, and Peel reacted slowly to the famine, famously stating in October 1846 (already in opposition): "There is such a tendency to exaggeration and inaccuracy in Irish reports that delay in acting on them is always desirable". His own party failed to support the bill, but it passed with Whig and Radical support. On the
third reading of Peel's Bill of Repeal (Importation Act 1846) on 15 May, MPs voted 327 votes to 229 (a majority of 98) to repeal the Corn Laws. On 25 June Wellington persuaded the Lords to pass it. On that same night Peel's
Irish Coercion Bill was defeated in the Commons by 292 to 219 by "a combination of Whigs,
Radicals, and Tory protectionists". Following this, on 29 June 1846, Peel resigned as prime minister.
Famine in Ireland Though he knew repealing the laws would mean the end of his ministry, Peel decided to do so. It is possible that Peel merely used the Irish Famine as an excuse to repeal the Corn Laws as he had been an intellectual convert to free trade since the 1820s. Blake points out that if Peel had been convinced that total repeal was necessary to stave off the famine, he would have enacted a bill that brought about immediate temporary repeal, not permanent repeal over a three-year period of gradual tapering-off of duties. Peel's support for free trade could already be seen in his 1842 and 1845 budgets; in late 1842
Sir James Graham wrote to Peel that "the next change in the Corn Laws must be to an open trade" while arguing that the government should not tackle the issue. Speaking to the cabinet in 1844, Peel argued that the choice was the maintenance of the 1842 Corn Law or total repeal. The historian
Boyd Hilton argued that Peel knew from 1844 he was going to be deposed as the Conservative leader. Many of his MPs had taken to voting against him, and the rupture within the party between liberals and paternalists, which had been so damaging in the 1820s but masked by the issue of parliamentary reform in the 1830s, was brought to the surface over the Corn Laws. Hilton's hypothesis is that Peel wished to be deposed on a liberal issue so that he might later lead a Peelite/Whig/Liberal alliance. Peel was magnanimous towards Irish famine and permitted quick settlements of disputes at frontiers in India and America (
Treaty of Amritsar (1846) on 16 March 1846 and
Oregon Treaty on 15 June 1846) in order to repeal
Corn Laws on 29 June 1846. As an aside in reference to the repeal of the Corn Laws, Peel managed to keep minimum casualties of
Irish Famine in its first year, Peel did make some moves to subsidise the purchase of food for the Irish, but this attempt was small and had little tangible effect. In the age of
laissez-faire, government taxes were small, and subsidies or direct economic interference was almost nonexistent. That subsidies were actually given was very much out of character for the political times; his successor,
Lord John Russell, received more criticism than Peel on Irish policy, the worst year being 1847, despite all of Peel's efforts, his reform programmes had little effect on the situation in Ireland. Russell could not manage public distribution system during
Irish Famine even though subsidized food from the United States was made available in Ireland. The repeal of the Corn Laws became more political than humanitarian. ==Later career and death==