Elizabeth faced many challenges as Queen of England in the late 1500s. She had to deal with religious divisions in England between Catholics and Protestants stemming from Henry VIII breaking with the Catholic Church. She created a new Church of England to unite both faiths. She also had to contend with Mary Stuart of Scotland who plotted to kill Elizabeth to become Queen of both Scotland and England. Additionally, Elizabeth went to war with Philip II of Spain after refusing his marriage proposal and executing Mary Stuart, but was able to defeat the Spanish Armada with the help of private English ships. She also struggled financially due to past wars but encouraged new companies and reduced salaries to address the issue.