USA HISTORY

Detailed explanation-1: -The war nearly doubled the British national debt, from £75 million in 1756 to £133 million in 1763. Interest payments alone consumed over half the national budget, and the continuing military presence in North America was a constant drain. The Empire needed more revenue to replenish its dwindling coffers.

Detailed explanation-2: -By the end of World War II Britain had amassed an immense debt of £21 billion. Much of this was held in foreign hands, with around £3.4 billion being owed overseas (mainly to creditors in the United States), a sum which represented around one third of annual GDP.

Detailed explanation-3: -The war provided Great Britain enormous territorial gains in North America, but disputes over subsequent frontier policy and paying the war’s expenses led to colonial discontent, and ultimately to the American Revolution.

Detailed explanation-4: -The need to borrow followed a decision in 1945 by the administration of President Harry Truman to end the lend-lease program used to supply Britain since 1941. By that time, Britain owed £4.2 billion to foreign creditors, while its income from overseas investments and exports had been halved since before the war.