[1] The National government, with Sidney Holland as Prime Minister, had undertaken a number of economic and constitutional reforms, although it had not seriously modified the new social welfare system which Labour had introduced.

Labour's leader, Peter Fraser, had died in December 1950 after a long period of poor health, and had been replaced in January 1951 by Walter Nash.

[2] The most significant issue in the 1951 elections was the growing industrial unrest of the time, particularly the ongoing dockworkers dispute.

The Labour Party, under Nash, attempted to take a moderate position in the dispute, but ended up displeasing both sides.

Another issue was high inflation, which frustrated voters and without the distraction of the strike, might have threatened Holland's government at the scheduled election for 1952.