In 1931, however, the agreement between United and Labour collapsed due to differing opinions on how to counter the Great Depression.

The Reform Party, fearing that the Depression would give Labour a substantial boost, reluctantly agreed to form a coalition with United to avert elections.

By forming a coalition, United and Reform were able to blunt Labour's advantage, ending the possibility of the anti-Labour vote being split.

This was a drop of four seats from what the two parties had won in the previous elections, but was still considerably better than many had expected given the economic situation.

Four candidates were elected unopposed: Walter Broadfoot in Waitomo, John Cobbe in Oroua, Alfred Ransom in Pahiatua, and Kenneth Williams in Bay of Plenty.