The Liberals had become the principal working-class party in most parts of the country by the 1880s. Many trade unions sought political representation through Liberal channels. The formation of a Labour party in 1900 was thus a break with the past because it involved independent organisation and representation. Nonetheless, the Liberals did not abandon ‘labour’ or the working-class vote. On the contrary, they hoped that a tacit alliance with an independent Labour organisation would enable them to extend their appeal. Many Liberals believed that Labour might attract support from some Tory working-class voters. They also acknowledged that labour organisations were already a powerful force in some ‘Liberal’ areas. A Liberal/Labour pact thus had a dual justification. Labour parliamentary candidates – unopposed by the Liberals – might obtain support where the Liberals, unaided, would always fail; a pact which limited Labour intervention in ‘Liberal’ strongholds would also protect Liberal flanks. The Liberals would gain the support of a useful ally. Labour would secure the parliamentary foothold it had hitherto been unable to gain through direct competition with the older parties. An informal pact was drawn up in 1903, and this operated fairly successfully at the 1906 election (Section I).

In 1903, Labour was a junior partner with presumed, localised advantages over the Liberals. At the same time, the Liberals recognised that if Labour was to remain a supplementary ally, and not become a national rival, they would have to maintain and reinforce their credibility as a radical force.