Financial Impact of the Seven Years’ War on British Colonies

In 1763 the Seven Years’ War ended with the British Empire emerging as victors. The victory came at great cost to Great Britain’s economy. The national debt almost doubled from 75 million pounds to 133 million pounds between 1755 and 1763. Given that Britain fought in North America to uphold the security of her colonial possessions, British ministers deemed it fair that the cost of the war should be shared with the colonies. Subsequently, import duties on popular goods were raised and a number of Acts regarding excise taxes were passed. These included the Sugar Act of 1764, the Stamp Act of 1765 and the Townshend duties beginning in 1767. The consequences of these actions were to place great financial burdens on the North American colonists, but more importantly, to

For example, the Navigation Acts of 1660 and 1663 specified a number of key trade related rules. First, they specified that all colonial trade had to be carried on ships owned by British or colonial traders. Secondly, all colonial goods bound for North America had to pass through certain English ports, in order to be taxed and monitored. Finally, enumerated goods such as sugar were to be shipped only to English ports. Despite these laws existing, the government in London did not enforce them strictly up until 1763. This policy is often referred to as ‘salutary neglect’ and it had the effect of introducing a perceived sense of autonomy and self-determination in the North American colonies. Following 1763, the British government began to enforce the Navigation Acts British lawmakers began to introduce more Acts which further restricted and monitored colonial trade and increased taxes. To the parliament in London this was just enforcing and building upon old laws, an opinion that was not shared by the