After returning to England in 1895, Hopetoun served in Lord Salisbury's cabinet as Paymaster General and Lord Chamberlain. The announcement of his appointment to the new governorship-general in July 1900 was met with praise. However, he arrived in Australia ill-informed about the political aspects of federation, and his decision to call on William Lyne to form a caretaker government became known as the "Hopetoun Blunder". Lyne, who had campaigned against federation, had little support from the political establishment, and Hopetoun was forced to turn to Edmund Barton to serve as Australia's first prime minister. His relationship with Barton once in office was civil, although his interferences in political matters were not well-received.