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=== Liberal revival === Through the 1950s and into the 1960s, the Liberals survived only because a handful of constituencies in rural [[Scotland]] and [[Wales]] clung to their Liberal traditions, whilst in two English towns, [[Bolton]] and [[Huddersfield]], local Liberals and Conservatives agreed to each contest only one of the town's two seats. [[Jo Grimond]], for example, who became [[Leader of the Liberal Party (UK)|Leader of the Liberal Party]] in 1956, was MP for the remote [[Orkney and Shetland (UK Parliament constituency)|Orkney and Shetland]] islands. Under his leadership a Liberal revival began, marked by the [[1962 Orpington by-election|Orpington by-election]] of March 1962 which was won by [[Eric Lubbock]]. There, the Liberals won a seat in the London suburbs for the first time since 1935. The Liberals became the first of the major British political parties to advocate [[United Kingdom membership of the European Economic Area|British membership of the European Economic Community]]. Grimond also sought an intellectual revival of the party, seeking to position it as a non-socialist radical alternative to the Conservative government of the day. In particular he canvassed the support of the young post-war university students and recent graduates, appealing to younger voters in a way that many of his recent predecessors had not, and asserting a new strand of Liberalism for the post-war world. The new middle-class suburban generation began to find the Liberals' policies attractive again. Under Grimond (who retired in 1967) and his successor, [[Jeremy Thorpe]], the Liberals regained the status of a serious third force in British politics, polling up to 20% of the vote, but unable to break the duopoly of Labour and Conservative and win more than fourteen seats in the Commons. An additional problem was competition in the Liberal heartlands in Scotland and Wales from the [[Scottish National Party]] and [[Plaid Cymru]] who both grew as electoral forces from the 1960s onwards. Although [[Emlyn Hooson]] held on to the seat of Montgomeryshire, upon [[Clement Davies]] death in 1962, the party lost five Welsh seats between 1950 and 1966. In September 1966, the [[Welsh Liberal Party]] formed their own state party, moving the Liberal Party into a fully federal structure.<ref>Russell Deacon (2011), History of the Welsh Liberal party, Welsh Academic Press.</ref>{{page needed|date=July 2021}} In local elections, [[Liverpool]] remained a Liberal stronghold, with the party taking the plurality of seats on the [[1973 United Kingdom local elections|elections]] to the new Liverpool Metropolitan Borough Council in 1973.<ref>{{cite journal|last=Jeffery|first=David|date=2017-08-01|title=The strange death of Tory Liverpool: Conservative electoral decline in Liverpool, 1945β1996|journal=British Politics|language=en|volume=12|issue=3|pages=386β407|doi=10.1057/s41293-016-0032-6|issn=1746-918X|doi-access=free}}</ref> On 26 July 1973, the party won two by-elections on the same day, in the [[1973 Isle of Ely by-election|Isle of Ely]] (with [[Clement Freud]]), and [[1973 Ripon by-election|Ripon]] (with [[David Austick]]). In the [[February 1974 United Kingdom general election|February 1974 general election]], the Conservative government of [[Edward Heath]] won a plurality of votes cast, but the Labour Party gained a plurality of seats. The Conservatives were unable to form a government due to the [[Ulster Unionist]] MPs refusing to support the Conservatives after the Northern Ireland [[Sunningdale Agreement]]. The Liberals obtained 6.1 million votes, the most it would ever achieve, and now held the balance of power in the Commons. Conservatives offered Thorpe the [[Home Office]] if he would join a coalition government with Heath. Thorpe was personally in favour of it, but the party insisted it would only agree pending a clear government commitment to introducing [[proportional representation]] (PR) and a change of prime minister. The former was unacceptable to Heath's cabinet and the latter to Heath personally, so the talks collapsed. Instead, a minority Labour government was formed under [[Harold Wilson]] but with no formal support from Thorpe. In the [[October 1974 United Kingdom general election|October 1974 general election]], the Liberals total vote slipped back slightly (and declined in each of the next three) and the Labour government won a wafer-thin majority. Thorpe was subsequently forced to resign after allegations that he attempted to have his [[homosexual]] lover murdered by a hitman. The party's new leader, [[David Steel]], negotiated the [[LibβLab pact]] with Wilson's successor as prime minister, [[James Callaghan]]. According to this pact, the Liberals would support the government in crucial votes in exchange for some influence over policy. The agreement lasted from 1977 to 1978, but proved mostly fruitless, for two reasons: the Liberals' key demand of PR was rejected by most Labour MPs, whilst the contacts between Liberal spokespersons and Labour ministers often proved detrimental, such as between Treasury spokesperson [[John Pardoe]] and [[Chancellor of the Exchequer]] [[Denis Healey]], who were mutually antagonistic.
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