The British Parliament, led by Prime Minister George Grenville, passed the Stamp Act to collect revenue, or money, from the colonies. The British had just fought a long, exhausting, and very expensive war against France, known as the French and Indian War in the colonies and the Seven Years' War in Europe. They argued (justifiably) that they had fought to protect the colonies from their French and Indian neighbors. The French had been driven off, and the British stationed troops on the frontier to deal with the threat posed by Native peoples (or more accurately by American settlers moving into Indian lands). Stationing these soldiers in America cost money, and, for the reasons mentioned above, the British government had an enormous war debt already. So the ministry of King George decided to try to make the colonists foot some of the bill by imposing a stamp tax that was basically a tax on certain types of documents. The colonists protested that this tax was illegal because they had no representatives in Parliament. The tax was repealed a year later due to the protests, which caught the British very much by surprise, but a host of new measures followed.
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