After losing the 1970 general election, Labour returned to opposition, but retained Harold Wilson as Leader. Heath's government soon ran into trouble over Northern Ireland and a dispute with miners in 1973 which led to the "three-day week". The 1970s proved a difficult time to be in government for both the Conservatives and Labour due to the 1973 oil crisis which caused high inflation and a global recession. The Labour Party was returned to power again under Wilson a few weeks after the February 1974 general election, forming a minority government with the support of the Ulster Unionists. The Conservatives were unable to form a government alone as they had fewer seats despite receiving more votes numerically. It was the first general election since 1924 in which both main parties had received less than 40% of the popular vote and the first of six successive general elections in which Labour failed to reach 40% of the popular vote. In a bid to gain a majority, a second election was soon called for October 1974 in which Labour, still with Harold Wilson as leader, won a majority of three, gaining just 18 seats taking its total to 319.

Why were the Conservatives able to form a government alone?