With the Queen Victoria's death, his son, Edward VII came to the throne who lacked the political ambition of his mother, he followed a rather bohemian life. Conservatives were in power but none of them wanted considerable changes in British politics. However, the challenges of the new century were already in the doorstep. It was the 'Welsh wizard' Lloyd George and his Liberal Party who fought a fierce campaign to answer these challenges. Our thesis concludes the main events of the period between 1906-1914 and answers all the questions concerning the rise and decline of the Liberal Party.