The 1923 United Kingdom general election was held on Thursday 6 December 1923.[1] The Conservatives, led by Prime Minister Stanley Baldwin, won the most seats, but Labour, led by Ramsay MacDonald, and H. H. Asquith's reunited Liberal Party gained enough seats to produce a hung parliament. It is the most recent UK general election in which a third party won over 100 seats (158 for the Liberals) and the most narrow gap, of a "mere" 100 seats, between the first and third parties since. The Liberals' percentage of the vote, 29.7%, trailed Labour's by only one percentage point and has not been exceeded by a third party at any general election since.
MacDonald formed the first ever Labour government with tacit support from the Liberals. Rather than trying to bring the Liberals back into government, Asquith's motivation for permitting Labour to enter power was that he hoped they would prove to be incompetent and quickly lose support. Being a minority, MacDonald's government only lasted ten months and another general election was held in October 1924.
In May 1923, Prime Minister Bonar Law fell ill and resigned on 22 May,[2] after just 209 days in office. He was replaced by Chancellor of the Exchequer, Stanley Baldwin. The Labour Party had also changed leaders since the previous election, after J. R. Clynes was defeated in a leadership challenge by former leader Ramsay MacDonald.
Having won an election just the year before, Baldwin's Conservative Party had a comfortable majority in the House of Commons and could have waited another four years, but the government was concerned and the Conservatives were divided. Baldwin felt the need to receive a mandate from the people, which, if successful, would strengthen his grip on the Conservative Party leadership and allow him to introduce tariff reform and imperial preference as protectionist trade policies over the objections of the free trade elements of his party.
Oxford historian and Conservative MP John Marriott depicts the gloomy national mood:
The times were still out of joint. Mr. Baldwin had indeed succeeded in negotiating (January 1923) a settlement of the British debt to the United States, but on terms which involved an annual payment of £34 million, at the existing rate of exchange. The French remained in the Ruhr. Peace had not yet been made with Turkey; unemployment was a standing menace to national recovery; there was continued unrest among the wage-earners, and a significant strike among farm labourers in Norfolk.
Confronted by these difficulties, convinced that economic conditions in England called for a drastic change in fiscal policy, and urged thereto by the Imperial Conference of 1923, Mr. Baldwin decided to ask the country for a mandate for Preference and Protection.[3]
Parliament was dissolved on 16 November[4] and the result backfired on Baldwin, who lost a host of seats to Labour and the Liberals, resulting in a hung parliament. A reformation of the Conservative-Liberal coalition which had governed the country from 1918 to 1922 was not practical, as Baldwin had alienated both of the two most prominent Liberals, Asquith and David Lloyd George.
Faced with the decision of whether to support a minority Conservative or Labour government on an issue-by-issue basis, Asquith ultimately chose to support the Labour government. This decision was influenced by Lloyd George's faction, which was strongly opposed to collaborating with Baldwin, and the belief amongst the Liberals as a whole that Labour's electoral success was largely due to the previous split within the Liberal Party. Asquith anticipated that a Labour government would reveal Labour's policies as impractical, thereby enabling the Liberals to surpass them in the subsequent election. Consequently, the Liberals joined forces with Labour to defeat Baldwin's King's Speech, leading to the fall of his government and allowing Labour to form its first government.
