Editing Lib–Lab pact (section)

===1977===
{{multiple image
| image1 = Prime Minister James Callaghan (cropped).jpg
| image2 = DavidSteel1987 cropped.jpg
| total_width = 350px
| caption1 = Prime Minister and [[Leader of the Labour Party (UK)|Leader of the Labour Party]], [[James Callaghan]]
| caption2 = [[Leader of the Liberal Party (UK)|Leader of the Liberal Party]], [[David Steel]]
}}
In March 1977, the Labour government – lacking a majority following a by-election defeat – faced a [[Confidence motions in the United Kingdom|motion of no confidence]]. In order to remain in office, Prime Minister [[James Callaghan]] approached the Liberal Party, at the time led by [[David Steel]]. Former Foreign Secretary Callaghan had been Prime Minister for just one year, having succeeded [[Harold Wilson]] who had led Labour to a three-seat majority at the [[October 1974 United Kingdom general election|October 1974 general election]].

An agreement was negotiated, under the terms of which the Labour Party accepted a limited number of Liberal Party policy proposals and in exchange, the Liberal Party agreed to vote with the government in any subsequent motion of no confidence. This "pact" was the first official bi-party agreement since the [[Second World War]] (there would be [[Cameron–Clegg coalition|a Conservative–Lib Dem coalition]] following the 2010 general election), though it was far short of a coalition. The Lib–Lab Pact's end was confirmed on 7 September 1978,<ref>{{cite news |title=1978: Callaghan accused of running scared |url=http://news.bbc.co.uk/onthisday/hi/dates/stories/september/7/newsid_2502000/2502781.stm |publisher=[[BBC News]] |date=7 September 1978}}</ref> by which time Callaghan was expected to call a general election, but instead he decided to remain as leader of a [[minority government]]. This government fell after a vote of no confidence was passed by one vote in March 1979, whereby Callaghan was forced to hold a [[1979 United Kingdom general election|general election in May]], in which [[Margaret Thatcher]] led the Conservatives into power.