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Push for home rule

Parnell's party emerged swiftly as a tightly disciplined and, on the whole, energetic body of parliamentarians. By 1885, he was leading a party well-poised for the next general election, his statements on Home Rule designed to secure the widest possible support. Speaking in Cork on 21 January 1885, he stated:

We cannot ask the British constitution for more than the restitution of Grattan's parliament, but no man has the right to fix the boundary of a nation. No man has the right to say to his country, "Thus far shalt thou go and no further", and we have never attempted to fix the "ne plus ultra" to the progress of Ireland's nationhood, and we never shall.

Both British parties toyed with various suggestions for greater self-government for Ireland. In March 1885, the British cabinet rejected the proposal of radical minister Joseph Chamberlain of democratic county councils which in turn would elect a Central Board for Ireland. Gladstone on the other hand said he was prepared to go 'rather further' than the idea of a Central Board. After the collapse of Gladstone's government in June 1885, Parnell urged the Irish voters in Britain to vote against the Liberal Party. The November general elections (delayed because boundaries were being redrawn and new registers prepared after the Third Reform Act) brought about a hung Parliament in which the Liberals with 335 seats won 86 more than the Conservatives, with a Parnellite bloc of 86 Irish Home Rule MPs holding the balance of power in the Commons. Parnell's task was now to win acceptance of the principle of a Dublin parliament.

Parnell at first supported a Conservative government – they were still the smaller party after the elections – but after renewed agrarian distress arose when agricultural prices fell and unrest developed during 1885, Lord Salisbury 's Conservative government announced coercion measures in January 1886. Parnell switched his support to the Liberals. The prospects shocked Unionists. The Orange Order, revived in the 1880s to oppose the Land League, now openly opposed Home Rule. On 20 January, the Irish Unionist Party was established in Dublin. By 28 January, Salisbury's government had resigned.

The Liberal Party regained power on 1 February, their leader Gladstone – influenced by the status of Norway, which at the time was self-governing but under the Swedish Crown – moving towards Home Rule, which Gladstone's son Herbert revealed publicly under what became known as the "flying of the Hawarden Kite ". The third Gladstone administration paved the way towards the generous response to Irish demands that the new Prime Minister had promised, but was unable to obtain the support of several key players in his own party. Lord Hartington (who had been Liberal leader in the late 1870s and was still the most likely alternative leader) refused to serve at all, while Joseph Chamberlain briefly held office then resigned when he saw the terms of the proposed bill.

On 8 April 1886, Gladstone introduced the First Irish Home Rule Bill, his object to establish an Irish legislature, although large imperial issues were to be reserved to the Westminster parliament. The Conservatives now emerged as enthusiastic unionists, Lord Randolph Churchill declared, "The Orange card is the one to play". In the course of a long and fierce debate Gladstone made a remarkable Home Rule Speech, beseeching parliament to pass the bill. However, the split between pro- and anti-home rulers within the Liberal Party caused the defeat of the bill on its second reading in June by 341 to 311 votes.

Parliament was dissolved and elections called, with Irish Home Rule the central issue. Gladstone hoped to repeat his triumph of 1868, when he fought and won a general election to obtain a mandate for Irish Disestablishment (which had been a major cause of dispute between Conservatives and Liberals since the 1830s), but the result of the July 1886 general election was a Liberal defeat. The Conservatives and the Liberal Unionist Party returned with a majority of 118 over the combined Gladstonian Liberals and Parnell's 85 Irish Party seats. Salisbury formed his second government – a minority Conservative government with Liberal Unionist support.

The Liberal split made the Unionists (the Liberal Unionists sat in coalition with the Conservatives after 1895 and would eventually merge with them) the dominant force in British politics until 1906, with strong support in Lancashire, Liverpool, Manchester and Birmingham (the fiefdom of its former mayor Joseph Chamberlain who as recently as 1885 had been a furious enemy of the Conservatives) and the House of Lords where many Whigs sat (a second Home Rule Bill would pass the Commons in 1893 only to be overwhelmingly defeated in the Lords).