The Liberal upsurge created a strange election result. In some ways it was a Conservative victory. The Tories were the largest single party in terms of seats (258 seats, compared to 191 for Labour and 159 Liberals) and also in votes, with 38 per cent of the votes cast compared to about 30 per cent each for Labour and the Liberals.
It may have appeared logical simply to dump Tariff Reform and probably Baldwin too, and form a minority government with Liberal toleration. But the party was weary of long years of coalition and distrusted its main supporters like Austen Chamberlain and Lord Birkenhead. Getting rid of Baldwin might have meant a split – it was a period in which all the parties had acute problems with disunity and there was no guarantee that many Tories would accept a replacement’s authority and fall into line with a Con-Lib coalition. Neither were most Liberals very keen to keep the Conservatives in power.
Several desperate options were considered in the period between the election and the convening of parliament in January 1924 to shut Labour out. But Baldwin and Asquith both accepted the legitimacy of Labour’s claim to govern, and felt that the circumstances of 1924 offered the safest conditions possible for a mild dose of ‘socialism’, and would with any luck acculturate Labour into the ways of Whitehall.
On 18 December Asquith announced that the Liberals would support a Labour amendment to the King’s Speech, effectively guaranteeing that Labour would form a government. Because Labour would not discuss coalition, it would be a minority government. Asquith and the Liberals at that point hoped that the 1923 parliament would last several years, notch up several useful reforming achievements, build good working relations between Liberal and Labour and perhaps cement it with electoral reform such as the Alternative Vote. He was to be brutally disappointed.