After Melbourne’s Government resigned Wellington was asked by the King to form a Government but Wellington said Peel is the only man to form a new government. When he returned from Italy he became both Prime Minister and Chancellor of the Exchequer. It was too risky at this early stage to appoint an ultra or a liberal to this senior position for fear of showing a bias. Also, he had confidence in his ability to handle the economy and had great skills in economic thinking. He set up his cabinet with four ultras, more than a token gesture, and liberals like Gladstone and Herbert. One of the most important roles Peel played at this time was uniting the party over the Ecclesiastical Commission. This was designed to reform the Church and was handled by Peel in such a way that all wings were happy and this united the party.
When Peel became Prime Minister he realised that the party had to change to win electoral success and he set out his objectives to achieve this. He realised that the party had to become more united and that the ultra Tories had to be brought in with the liberal minded Tories. He was a clever man and knew how to go about this. He convinced the Ultra Tories that if they got into power he would not change everything but told the liberals he was prepared to change things. He did believe in scrutinising abuses but he only issued change if they were, “proved abuse”. He also knew that the new industrial middle-class had to be won over. He envisaged a party, which without denying its aristocratic links or the interest of its traditional supporters, could harness to its purpose the energy, influence and abilities of the new middle-class. He started the system of Manifestos in 1835 to try and win the support of the electorate. This was a clever idea and it certainly worked. His ability to reach out to the people and address each of their abuses that are relevant to their lives in writing was an ingenious idea that had never been done. At this time Swing Riots were rife and the French Revolution was in full force and Peel began to worry about revolution in Britain. To combat this he chose a very odd stance. He would support the Whig Government if it would make the constitution stronger. This led to Peel helping Whig Bills, such as the Poor Law Amendment Act and the Municipal Corporation Act, get through with his support. Although the Bills got through the dependence on Tory votes meant the Whig Government was being weakened. So by trying to strengthen the government Peel was also weakening it, which was a great advantage to him. He was an intelligent man and he knew that this was happening and his talent enabled him to exploit the situation to his advantage.
By 1835 a General Election was held and this certainly illuminated the revival of fortunes for the Tory party. With 273 MP’s in the House of Commons, a more effective organisation and established leaders (like Peel) the Tories were now a formidable parliamentary force. They had gained 98 MP’s from 1832 and won several by-elections between 1837 and 1841. Peel was certainly responsible for the increase in fortunes but it also has to be seen in context of the Whigs. The Whig Government had become increasingly incompetent and the alliance between the old Whigs and the Radicals was becoming increasingly strained. In the early years they had been a reforming party but now it had lost its reformist zeal and relations in the party were becoming tense. Peel had capitalised on their problems for his gain and this was part of his talent but without the problems being there Peel may have found the revival of the party a more difficult process.
After the Litchfield House Compact and his subsequent defeat over the Irish Tithes Bill Peel resigned as Prime Minister but continued his role as leader of the Tory Party. The Whig government formed by Melbourne, after Peel’s demise, had lost its reformist zeal from the 1830’s and the party only introduced minor reforms. This led to the Radicals becoming more critical of the Whigs. Peel understood what was happening and exploited the rifts between them and other weaknesses. Strains on the Government proved too much over the Jamaica Bill and after if was passed by only five votes Melbourne resigned, but he found himself quickly back in office after Peel’s failure to form a Government. This was due to Queen Victoria’s refusal to dismiss her Whig ‘Ladies of the Bedchamber’. This was perhaps a failure of Peel who could be stubborn at times but he also knew that the government could be placed in a difficult position otherwise. His foresight was an indispensable talent.
The Whig Government continued to suffer from bad management and incompetence and by 1841 the budget deficit had grown to £6 million through soaring food taxes and declining revenue. The country was struggling through a severe period of economic and social crisis marked by the revival of the Chartist movement and bitter hardship for the working classes. Peel was gaining more and more support and many Whigs joined the Tories. Peel was a master at exploiting situations for his benefit and had a sound understanding of economics. These abilities meant the Whigs days in Government were numbered. The 1841 election results showed a decisive win for the Tory Party and it was a personal triumph for Peel. They had gained 53 seats from the 1837 election and now controlled 136 out of 159 county seats in England and Wales. Although they had undoubtedly increased their support Peel’s attempt to win over the middle class had not entirely worked. Many of the seats were from larger urban areas such as Bristol and Liverpool but these were older commercial centres and the Tories had won few seats in the new great industrial cities. The Tory party still remained above all a party of the land.
Peel, as a Prime Minister, had shown courage, energy, firmness, and an unexpected good temper in handling both his own party members and the opposition. In the area of Government he had again displayed detailed knowledge, formidable powers of work and concentration and administrative mastery. This had undoubtedly helped the Tory party revive its electoral fortunes. Although Peel had shown great ability as a firm and skilful leader and in economic thinking he was certainly helped by chance and the incompetent nature of the Whig Government. Through his ability to exploit these opportunities he revived the party by making it a coherent and disciplined body but the party was still a party of the land and Peel had failed to capture the support from the great industrial cities.