After the Carlton Club vote Chamberlain went straight to Number 10 Downing Street. “We must resign Lloyd George', he said”. But Lloyd George already knew and lost no time in resigning his office. He acted as Prime Minister for four more days because Bonar Law refused to take office until he had been elected leader by the Conservatives. The Conservatives had taken advantage on Lloyd George’s prestige after the war had ended in 1918. They had now ditched him because he had outlived his usefulness and before his failings could drag them down.
The Conservatives disliked his solution of the Irish problem, where trouble flared up immediately after the election when the 73 Sinn Fein MPs set up their own parliament in Dublin. The IRA began a campaign of terrorism against the police and the government fought back by using the Black and Tans, this move however, made him lose support from the Liberal side of the coalition. After many atrocities like Bloody Sunday where 12 spectators where killed and 60 wounded by retaliation from the Black and Tans for the morning attacks on British citizens living in Ireland. When Lloyd George a temporary found a settlement by partitioning Ireland, he had made enemies in doing so. The Conservatives were furious at the way in which the union between Britain and Ireland had been destroyed and of course the many Liberals who disliked his use of the Black and Tans.
The Conservatives also criticised him because he allowed the sale of knighthoods and other honours to unsuitable candidates in order to raise extra money this was to become the so-called honours scandal.
This leads up to one pf the biggest factors in his downfall the Chanak Incident in 1922. The Turks were threatening to break the Versailles settlement by moving troops into a neutral zone, thereby clashing with the British occupying force based at Chanak on the Dardanelles. Lloyd George took a strong line, warning the Turks that if the neutral zone were violated, they would face war with the British Empire. This move by Lloyd George threatening war at a time of war-weariness in Britain was a dangerous and costly move. Eventually a compromise was reached by the Treaty of Lausanne that replaced the Treaty of Sevres allowing Turkey to keep Eastern Smyrna. The crisis passed, war was averted and it seemed that Lloyd George had triumphed. However, many of his Conservative supporters were outraged at what they saw as his unforgivable rashness. Also his pro-Greek policy offended the traditional Conservatives view of pro-Turk. His days in power from that point on were numbered.
The leaders of the Conservatives were becoming afraid that if the coalition continued much longer, Lloyd George would split the Conservative Party as he had split the Liberal Party in two.
So, in conclusion it was just not one factor that leads to the fall off Lloyd George rather it was a combination of many factors. His method of carrying out politics made him many enemies, a large amount of distrust was formed about him, and his disrespect for the traditional ways of politics, shown by his sale of knighthoods and other honours, also contributed to his downfall. Slowly, he lost support which was essential: Labour was gaining more support of the working class, the press was getting on his back whereas in war time he was a hero and finally he had served all the good he could for the Conservative Party who where beginning to split over him as did the Liberal Party in following up to 1918 election.