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He was the last Liberal prime minister; the party fell into third-party status towards the end of his premiership. Lloyd George gained a reputation as an orator and proponent of a Welsh blend of radical Liberal ideas, which included support for Welsh devolution , disestablishment of the Church of England in Wales , equality for labourers and tenant farmers, and reform of land ownership.
In he won a by-election to become the Member of Parliament for Caernarvon Boroughs , in which seat he remained for 55 years. He served in Henry Campbell-Bannerman 's cabinet from After H.
Asquith succeeded to the premiership in , Lloyd George replaced him as Chancellor. To fund extensive welfare reforms he proposed taxes on land ownership and high incomes in the " People's Budget " , which the Conservative -dominated House of Lords rejected. The resulting constitutional crisis was only resolved after elections in and passage of the Parliament Act His budget was enacted in , and the National Insurance Act and other measures helped to establish the modern welfare state.
In , he was embroiled in the Marconi scandal , but remained in office and secured the disestablishment of the Church of England in Wales. In , Lloyd George became Minister of Munitions and expanded artillery shell production for the war. In , he was appointed Secretary of State for War but was frustrated by his limited power and clashes with Army commanders over strategy.
Asquith proved ineffective as prime minister and was replaced by Lloyd George in December He centralised authority by creating a smaller war cabinet. To combat food shortages caused by u-boats , he implemented the convoy system, established rationing, and stimulated farming. After supporting the disastrous French Nivelle Offensive in , he had to reluctantly approve Field Marshal Haig 's plans for the Battle of Passchendaele , which resulted in huge casualties with little strategic benefit.