The election took place following the efforts of the Liberal government to pass its People's Budget in 1909, which raised taxes on the wealthy to fund social welfare programmes.

The 1909 budget was only agreed to by the House of Lords in April 1910 after the January general election in which the Liberals and the Irish Parliamentary Party gained a majority.

The Government called a further election in December 1910 to get a mandate for the Parliament Act 1911, which would prevent the House of Lords from permanently blocking legislation linked to money bills ever again, and to obtain King George V's agreement to threaten to create sufficient Liberal peers to pass that act (in the event this did not prove necessary, as the Lords voted to curtail their own powers).

[2] The Conservative Party, led by Arthur Balfour with their Liberal Unionist allies, and the Liberal Party, led by Prime Minister H. H. Asquith, almost exactly repeated the numerical result produced in the January election, with the Conservatives again winning the largest number of votes.

It was also the last United Kingdom general election in which a party other than Labour or the Conservatives won the most seats.