The government had been in trouble since October of the previous year when a major cabinet row broke out over conduct of the Seven Year’s War in which Britain was involved, leading to the resignation of William Pitt. The loss of Pitt was a serious blow and undermined Newcastle’s position. In early 1762 a further row broke out over the war, this time over how to finance the conflict. George Grenville as leader of the House of Commons refused to present Newcastle’s proposals to the Commons and without Pitt’s support Newcastle was forced to back down. Faced with this humiliation, Newcastle tendered his resignation to King George III who, no fan of the Duke, immediately accepted and replaced him with his favourite the Tory Earl of Bute.