The rejection of the Budget by the House of Lords (S629) caused a new
Parliamentary election (1910). The Liberal Party with the Labor Party
again won the victory, but with a decidedly diminished majority.
Mr. Asquith, the Liberal Prime Minister, declared that the policy of
the Liberal Government forbade any concessions whatever to the Lords.
The Lords thought it unwise to carry the contest further, and when the
new Parliament met they bowed to the inevitable and reluctantly voted
to accept the Budget,--land taxes and all.[2]
[2] The Liberal Party in power threatened, in case the Lords continued
to refuse to accept the Budget, that they would either request the
King to create a sufficient number of Liberal Peers to carry it
(S582), or that they would make the country go through another
election.