Lord North's appointment as Prime Minister in January 1770 following the Duke of Grafton's resignation brought to an end a decade of political turmoil. Since George III's accession in 1760 there had been six administrations, and most of the leading political figures had played their part in a seemingly endless game of ministerial musical chairs. North, a most underrated Prime Minister, established a ministry which eventually lasted for twelve years, although at first it seemed unlikely that he would remain in office for twelve weeks. He needed all his good humour, political acumen, and debating skills (which were put to effective use in the lower House) to overcome the combined threat posed by the followers of former First Ministers Lord Chatham, George Grenville, and the Marquess of Rockingham. This talented opposition failed to press home its attack, and North found that the ministerial majority in the Commons grew steadily to almost a hundred. By February he was safe, much to the King's relief.

Stability was much needed, and not only in the world of high politics. The ending of the Seven Years War in 1763 created a whole host of new economic, imperial, and political problems, many of which contributed, directly or indirectly, to the eventual outbreak of the War of American Independence in 1775. Economic recovery after the war was hampered by damaging credit crises in 1763 and 1772, and the national debt continued to spiral upwards, rising from £98 million in 1760 to £131 million in 1767.