Quick version
Scotland experienced financial difficulties before Union that strained relationships with England.
- Scotland had several failed crop harvests called the 'Ill Years' that led to famine.
- England's Navigation Acts banned Scottish traders from trading with England's overseas colonies.
- The Darien Scheme, an attempt to establish a Scottish trading colony in Darien, Panama, led to financial disaster.
After the death of William and Mary, England pressured the Scottish Parliament to accept Anne as queen to secure a Protestant succession.
The Scottish Parliament passed laws to secure its powers and protect its trading options.
- Act of Security 1703 - stated that Scotland reserved the right to choose it's own monarchs.
- Act anent Peace and War 1703 - gave the Scottish Parliament the right to declare war rather than the monarch.
Learn in more depth
In the 1690s, Scotland suffered from financial problems that increased hostility towards England. Many people thought that there was a lack of English willingness to help Scotland in its time of need. Scotland was suffering for a number of reasons.
The 'Ill Years' famine
The 'Ill Years' famine began in 1693 and is described as a series of bad harvests and famine in Scotland over several consecutive years that caused massive economic issues for the country.
The Navigation Acts
The Navigation Acts were laws that, since the 1650s, prevented Scotland from trading with England’s colonies in India and the Caribbean.
This was supported by King William and denied Scots the chance to profit from the trade opportunities that English merchants enjoyed. This cut off a possible source of wealth for Scots.
Unlike England and other European countries, Scotland had no colonies of its own so it continued to fall behind its rivals.
The English Navy
During English wars against rivals on continental Europe, the English Navy prevented Scottish ships from travelling to countries such as France, Spain or Holland. This reduced the ability of Scots to trade.
The Darien Scheme disaster, 1698
Video - The Darien Scheme
In 1695, the Company of Scotland was set up to make Scotland a global trading nation.
Then in 1698, a merchant, William Paterson, persuaded the Scottish government and the Company of Scotland to finance the Darien Scheme – a plan to develop a Scottish colony in Panama, a hub for trade with the Americas and East Asia.
Many nobles, merchants and ordinary Scottish folk put their life savings into the Company of Scotland, investing around a quarter of Scotland’s total wealth within 6 months.
Poor planning, disease and the harsh tropical climate, combined with interference from King William III and attacks from the Spanish made the Darien Scheme a disaster.
The Company of Scotland suffered huge losses.
Many investors went bankrupt, and trust in Scotland’s overseas trade collapsed.
The impact on the Scottish economy was catastrophic.
The failed Darien Scheme became a major reason for the 1707 Act of Union which included the Equivalent, a sum of £398,000 to pay off Scotland’s debts and allowed Scottish businesses to enter the English trading system
Image source, Royal Geographical Society / GettyThe failure of the Darien Scheme, which was established in 1698, was a major part of Scotland’s problems.
This was a plan proposed in the Scottish Parliament to create a Scottish colony in what is now Panama. This would act as a base from which Scotland could trade with the people of Central America, as well as with Asia, North and South America and the Caribbean.
Despite King William’s initial agreement, he was told by his advisors in London that a Scottish empire would threaten English trade.
He used his influence to encourage English and Dutch investors to withdraw their money from the Company of Scotland - the company set up to run the Darien scheme.
As a result, the Company was left with Scottish investment of around £400,000, just enough to establish a small colony in Panama. 2,500 people sailed from Leith in 1698 but by 1700 only a few hundred people survived.
The Darien Scheme failed for a number of reasons:
- The scheme was badly planned and the colonists were not prepared for the tropical climate, and swampy jungle environment.
- Inadequate supplies were brought - ships were loaded with goods for trading rather than food to survive on.
- Malaria and yellow fever brought widespread illness and a high death rate.
- Local people were not interested in the goods the Scots offered for trade.
King William played a key role in the failure of the Scots colonists - there was no support from English colonists in the region, as William had discouraged them from helping.
Spanish troops attacked the Scots, as William had told the Spanish that he would not prevent them from doing so.
The failure of the scheme led to severe financial hardship for many in Scotland.
Image source, Royal Geographical Society / GettyLegal tensions between England and Scotland pre Treaty
After the disaster of Darien, many of Scotland's nobility thought union with England would do much to repair the nation's finances. Access to English markets and overseas colonies would lead to new opportunities.
Before any such union, though, there were many legal issues that would need to be resolved.
Jacobite MPs
Scottish Jacobite MPs supported James VII and II until his death in 1701. They continually voiced their opposition to the new monarchy - William and Mary, and then Anne.
After 1701, some supported further military action to restore the Stuarts to the monarchy:
- They wanted James Francis Edward Stuart ('The Old Pretender'), son of James VII and II, to become King.
- He would have become James the VIII and III (but never did).
A set of laws passed one after the other by the Scottish and English Parliaments made relations between the two countries worse.
Anglo-Scots legal battles
Click to view a list of competing laws passed in Scotland and England at this time.
| Law passed | Country | Details |
|---|---|---|
| Act of Settlement 1701 | England | Declared that if Anne, who was heir to the throne, died with no surviving children, the throne would pass into the Hanoverian royal family, rather than pass back to the Stuarts. |
| Act of Security 1703 | Scotland | Anne became Queen on William’s death in 1702. The Scots passed this law, that said Scotland would make its own decision about who would be its next monarch. |
| Act anent Peace and War 1703 | Scotland | Scottish MPs always resented becoming involved in wars that England was fighting. They passed this law which gave the Scottish Parliament, not the monarch, power to declare war or make peace with other countries. |
| Wool Act 1703 and Wine Act 1703 | Scotland | These laws allowed Scotland to continue to trade with European nations, even when England was at war with these countries. |
| Alien Act 1705 | England | This law threatened the Scottish Parliament - it demanded that the Scottish Parliament accept the Hanoverian succession and begin negotiations for full Union by Christmas 1705. If this did not happen, Scots who owned land in England or who were regular traders, would lose their right to do so. Scots would therefore be treated as foreigners in England. |
MPs and religion
In the Scottish Parliament, MPs expressed fears for the Scottish Presbyterian Church.
They were fearful that some English MPs might impose a structure similar to the Church of England on the Scottish Kirk. This could have meant the introduction of archbishops and bishops and a position of power for the monarch within the Church.
This was something which had existed in England since the reforms of King Henry VIII, but had never existed in Scotland.
The appointment of Commissioners
In 1706 a number of Scottish and English politicians called Commissioners were appointed to discuss proposals for a possible Union of Scotland and England.
They drew up a draft Treaty of Union. The draft Treaty had 25 articles or parts.
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Recap what you have learned
Scotland experienced financial difficulties before Union that strained relationships with England.
- Scotland had several failed crop harvests called the 'Ill Years' that led to famine.
- England's Navigation Acts banned Scottish traders from trading with England's overseas colonies.
- An attempt to establish a Scottish trading colony in Darien, Panama, led to financial disaster.
In the years leading to Union, England pressured the Scottish Parliament to accept Anne as queen after the death of William and Mary to secure a Protestant succession.
The Scottish Parliament passed laws to secure it's powers and protect it's trading options.
- Act of Security 1703 - stated that Scotland reserved the right to choose it's own monarchs.
- Act anent Peace and War 1703 - gave the Scottish Parliament the right to declare war rather than the monarch.
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