While the English were satisfied with their progress in the war in Scotland, Balliol’s control over the country remained transitory. He led a chevauchee, the ravaging of territory by mounted forces into the Highlands in September 1335. Meanwhile, Edward was negotiating with David Bruce’s party. The two sides finally agreed that Balliol would rule in his lifetime, but would be succeeded by Edward’s brother-in-law David Bruce, who would hold Scotland as Edward’s vassal. This agreement was called the Treaty of Newcastle. Edward was confident the negotiations would succeed. Late in December he had his supply dump at Skinburness dismantled, and sent two transports with barges running escort to bring back the wine he had donated to the 1335 campaign.

By early 1336, the government’s optimism was waning. In late January, troops were again summoned to Berwick. On 10 February, English naval forces were also mobilised. The sheriffs of Kent and Sussex were warned to expect raids from French ports. In response, large ships from both admiralties were re-arrested. The admirals’ deadline was the third week of March, as it was believed the French would not risk their Mediterranean galleys before the calmer spring weather. Three of the biggest royal ships, La Christofre, La Cogge Edward and La Rodecogge, were also prepared for action. The northern fleet was expected to deploy in Scottish waters, and was accordingly placed under the command of a tough new admiral. Thomas Ughtred, a Yorkshire knight and one of the Disinherited, had probably been nominated for the role by his Berwick landlord Crabbe.

By preparing for war while negotiations were continuing, Edward was being pragmatic. Mustering armies and fleets took time. They could be dissolved if not needed, but nothing could bring them together quickly in an emergency. Forces would often be summoned while governments were negotiating, as the implicit threat strengthened their hand at the table. When David Bruce’s messengers rejected the Treaty of Newcastle at parliament in mid-March, the English were almost ready. Bruce’s advisors rejected the truce partly out of national pride, but also because they were assured of French support. Even before Bruce’s party rejected the treaty, Philip had announced his intention to ally with Bruce to Pope Benedict XII.