American colonists in the late eighteenth century were reluctant taxpayers, since duties on imported goods, such as tea, went straight back to Britain.

Lord North, George III's new Prime Minister, eased the situation by abolishing all tariffs - except for a nominal one on tea. But widespread smuggling ensured that tea tax remained uncollectable.

The Tea Act of 1773 gave the East India Company a monopoly over tea distribution in North America at a price that undercut cheap, smuggled tea, while guaranteeing tax revenues to Britain.

But in December of that year, a group of American patriots disguised as Mohawk Indians boarded British ships in Boston harbour, hauling 342 chests of East India Company tea onto the decks before tossing them into the waters below. It was an act of defiance by American colonists against a British plan to make sure they bought only taxable tea.

After The Boston Tea Party, Anglo-American relations declined rapidly, and, within a few years, America won its independence.

Back in Britain, there was a new mood. The loss of America and an enlightened attitude towards tea-drinking prepared the way for a fresh approach. It came from Richard Twining, Chairman of the London Tea Dealers. Richard was clever and influential - and he had the ear of William Pitt, the Prime Minister.

Richard argued that high taxes delivered lower revenues because they depressed consumption and encouraged evasion, whereas lower taxes would lead to increased consumption and make smuggling unprofitable.

In 1784, William Pitt passed the Commutation Act, which, after a century of punitive taxation, the duty on tea was reduced to sustainable levels. At last, Britons could afford the drink that was soon to become the nation's favourite. Tea consumption increased rapidly and, in no time at all, imports had doubled.