The huge expense incurred by England during William III's prosecution of the Nine Years' War angered Parliament, leading to large cuts in funding for the military; these primarily affected soldiers pay, which was drastically reduced, and the withholding of gratuities that soldiers were often promised prior to going into battle. Many regiments had their strengths reduced, including The Queen's Own Dragoon's, which had its strength reduced by half. During the period of peace between the end of the Nine Years' War in 1697 and the beginning of the War of the Spanish Succession in 1702, the regiment performed a number of small tasks befitting its reduced size; it conducted coastal revenue duty, confronted smugglers, and escorted the King when he travelled to Holland. The War of the Spanish Succession began in May 1702, and in June an English expeditionary force was assembled at Cowes on the Isle of Wight under the command of the Earl of Ormond, tasked with landing in Cadiz, Spain and capturing the surrounding area; 18 officers, 24 non-commissioned officers and 186 troopers from the regiment formed part of the force. It sailed from Cowes on 23 June and landed in Cadiz on 15 August, where it soon engaged Spanish forces. As the only cavalry formation with the expeditionary force, the regiment was constantly employed as picquets at the forefront of the English advance, as well as being used to guard and protect outposts. The regiment skirmished with Spanish forces throughout September, but an attempt to besiege Cadiz was far more difficult than was expected, ending in a Spanish victory and, as a result, the regiment was embarked on transports destined for England. During the voyage, however, the transports received word that a Spanish naval force had been sighted attempting to land near the city of Vigo. The transports turned back towards Spain, reaching Vigo on 12 October, and off-loaded the regiment. There are few details about the regiment's involvement in the ensuing Battle of Vigo Bay, but records indicate that all of the Spanish vessels involved in the attempted landing were either destroyed or burnt, and the regiment received a considerable amount of prize money for its part in the action.