Liberals would stand down in 30 constitutions where Labour were more likely to win against Conservatives
Labour also stand down
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In agreement for Liberals to stand down, Labour also didn't compete against Liberals to prevent a split in anti-conservative votes
Why did Labour make the pact with Liberals?
Liberals no real threat
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After the Liberals build up in the years towards the 1906 election the Labour Party which was not even fully established yet were no great threat to them
More seats
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Labour would gain more seats in more constituencies and prevent a split in the anti-Conservative votes
Why did Liberals agree to the pact?
Funding
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Labour had a £150,000 election fund
The pact would reduce competition between Labour and Liberals therefore less propaganda will be needed and money is saved
Both parties in strong agreement about many issues