Returning to England, he attended the Imperial Defence College as a student in 1948. He was appointed GOC of the 16th Airborne Division in 1948 and then Commandant of the Staff College, Camberley in 1951. He went on to be Commander-in-Chief (C-in-C) of East Africa Command in 1955 and, returning to England, Director General of Military Training at the War Office in 1957. He became General Officer Commanding-in-Chief (GOC-in-C) of Eastern Command in 1960 and Quartermaster-General to the Forces the following year. Finally he was appointed Governor of Gibraltar in 1964; he retired in 1969. He was described as radiating "a serene imperturbability" by Joshua Hassan, who was a Chief Minister of Gibraltar. Lathbury's composure was invaluable at the time as the politics meant there was doubts over the status of Gibraltar, with questions being asked at the United Nations. This made the locals nervous, especially as there was a de facto freeze on take home pay in Gibraltar.