William Pitt the Younger however, was comfortable with Shelburne, and thus joined his government; he was appointed Chancellor of the Exchequer. Fox, who became Pitt's lifelong political rival, then joined a coalition with Lord North, with whom he collaborated to bring about the defeat of the Shelburne administration. When Lord Shelburne resigned in 1783, King George III, who despised Fox, offered to appoint Pitt to the office of prime minister. But Pitt wisely declined, for he knew he would be incapable of securing the support of the House of Commons. The Fox–North coalition rose to power in a government nominally headed by William Cavendish-Bentinck,
William Pitt the Younger reform proposal introduced in Parliament. Another important domestic issue with which Pitt had to concern himself was the national debt, which had doubled to £243 million during the American war. Every year a third of the budget of £24 million went to pay interest. Pitt sought to reduce the national debt by imposing new taxes. In 1786, he instituted a sinking fund so that £1,000,000 a year was added to a fund so that it could accumulate interest; eventually, the money in the fund was to be used to pay off the national debt. By 1792 the debt had fallen