The 1923 general election was fought on the Conservatives' protectionist proposals but, although they got the most votes and remained the largest party, they lost their majority in parliament, necessitating the formation of a government supporting free trade. Thus, with the acquiescence of Asquith's Liberals, Ramsay MacDonald became the first ever Labour Prime Minister in January 1924, forming the first Labour government, despite Labour only having 191 MPs (less than a third of the House of Commons).

In what year did Ramsay MacDonald become the Labour PM?