In 1925 Labour suffered a setback, losing 5 seats despite gaining 3.5% more of the vote.
However, Holland became Leader of the Opposition on 16 June 1926, as a result of the Eden by-election.
Labour had now surpassed the Liberal Party as the second largest party in Parliament.
Following the 1928 election the results showed a hung parliament.
Labour held the balance of power and chose to give reluctant support to the United Party (a renamed Liberal Party) rather than continue to let Reform govern.
As a result of this Holland lost the status of Leader of the Opposition to ousted Prime Minister Gordon Coates.
Holland attributed the loss to the failure of all trade unionists to support Labour, although had Labour won in 1928 it may well have been denied its long tenure of office which followed after 1935.

Labour's support for United lasted until 1931 until the Great Depression took hold.
Holland disagreed with United on financial policy to combat the depression and its effects.
Holland decided to withdraw support from the government and moved for a vote of no confidence, intending to trigger an election where he thought many disenchanted voters would switch to Labour.
Much to his surprise, the Reform party voted with United and the two entered into a coalition denying Holland his chance to seize the initiative.
An election was held at the years end and Labour improved well, but still fell short of winning Government.

As the Depression worsened, Holland began to doubt some of his convictions.
At first, Holland had believed that the Depression marked the beginning of the end for capitalism, but as the economic problems continued, and many workers were cast into poverty, Holland began to question whether his theories were capable of solving the crisis.
Suffering from depression, exhaustion, and ill health, Holland began to withdraw from the activities of leadership.
Talk of a possible challenge to his leadership appeared, but there was not yet any willingness for an open confrontation.
In 1925 Labour suffered a setback, losing 5 seats despite gaining 3.5% more of the vote. However, Holland became Leader of the Opposition on 16 June 1926, as a result of the Eden by-election. Labour had now surpassed the Liberal Party as the second largest party in Parliament. Following the 1928 election the results showed a hung parliament. Labour held the balance of power and chose to give reluctant support to the United Party (a renamed Liberal Party) rather than continue to let Reform govern. As a result of this Holland lost the status of Leader of the Opposition to ousted Prime Minister Gordon Coates. Holland attributed the loss to the failure of all trade unionists to support Labour, although had Labour won in 1928 it may well have been denied its long tenure of office which followed after 1935.
Labour's support for United lasted until 1931 until the Great Depression took hold. Holland disagreed with United on financial policy to combat the depression and its effects. Holland decided to withdraw support from the government and moved for a vote of no confidence, intending to trigger an election where he thought many disenchanted voters would switch to Labour. Much to his surprise, the Reform party voted with United and the two entered into a coalition denying Holland his chance to seize the initiative. An election was held at the years end and Labour improved well, but still fell short of winning Government.
As the Depression worsened, Holland began to doubt some of his convictions. At first, Holland had believed that the Depression marked the beginning of the end for capitalism, but as the economic problems continued, and many workers were cast into poverty, Holland began to question whether his theories were capable of solving the crisis. Suffering from depression, exhaustion, and ill health, Holland began to withdraw from the activities of leadership. Talk of a possible challenge to his leadership appeared, but there was not yet any willingness for an open confrontation.
Harry Holland