Following the 2010 general election, David Cameron's Conservatives were the largest party and subsequently formed a government through a coalition with the Liberal Democrats.

[citation needed] For the 2011 Scottish Parliament election, the party campaigned on what it called 'common sense for Scotland' and outlined the requirement to re-introduce university tuition fees and prescription charges, and emphasized what the party had helped pass through parliament as a minority force in the period from 2007 to 2011: 1,000 extra police officers, a four-year council tax freeze and a £60m town regeneration fund.

Whilst the Conservatives could take comfort knowing that their losses were slight compared to those suffered by Labour and the Liberal Democrats, Annabel Goldie announced her resignation as party leader four days after the election.

He had unsuccessfully contested the Scottish Parliament constituency of Eastwood three times, holding a notional majority of over 3,500 votes on the third occasion.

He belonged to the Conservative Christian Fellowship, the Scotland Malawi Partnership and had been Parliamentary Advisor to the Autism Treatment Trust.

[24] Regarded as being to the right of the party, Fraser supported greater tax and spending powers for the Scottish Parliament in the form of further financial devolution.

He stated his rejection of full fiscal autonomy for Scotland, calling it 'independence in disguise', but pledged support for financial devolution, which he claimed would make Parliament more accountable for the money it spends.

Davidson declared her candidacy on 4 September, the same day that Murdo Fraser made his pitch to disband the Scottish Conservatives and start up a new party.

Davidson was described as more politically moderate than her main opponents[20] and she opposed the notion of Scottish Conservatives separating from the UK-wide party and renaming itself.

She opposed the Scotland Bill 2011, calling its proposal to vary tax by 10p as 'crazy', and voiced opposition to the idea of Scottish Conservatives disbanding into a new centre-right party.

The idea received mixed reception amongst senior Conservatives, with former Scottish Secretary under John Major Lord Forsyth calling the plan 'ludicrous'.

The Education Secretary Michael Gove, who was born and raised in Scotland but represents an English constituency, welcomed the idea, calling it a sign of genuine 'revival, political and intellectually' of the centre-right in Scotland, whereas former Defence Secretary Liam Fox, also a Scot representing an English constituency, stated that he opposed the idea.

No word was received on Prime Minister David Cameron's viewpoint; however, his close ally Francis Maude pledged support for the idea.

[42] On 5 October 2011, the Scottish Conservative media director Ramsay Jones was suspended from his duties during the leadership contest, after it was revealed that he had met Davidson and her campaign team in her flat on Sunday, 18 September.

[47] Prime Minister and Conservative Party leader David Cameron congratulated Davidson on her win, saying that he looked "forward to working with her to strengthen the Union and build a better future for Scotland".

[51][52] Outgoing Scottish Conservative leader Annabel Goldie also offered congratulations, stating her confidence that "[Davidson] is more than equal" to challenging Alex Salmond.

"[52] Murdo Fraser conceded defeat, saying he was "disappointed that I was not able to persuade more of our members that my vision for the future is the correct one", but pledged to support Davidson as leader.

[5][54] In an interview with the BBC, leading party donor John McGlynn, who had supported Murdo Fraser, warned Davidson that she had a difficult job ahead of her and needed to develop policies that "resonated" with the Scottish people, claiming that the next 7–10 days would be especially critical.

[55] Murdo Fraser refused a post in the new Shadow Cabinet, but was tipped to eventually lead the Scottish Conservative campaign to secure a 'No' vote in the forthcoming referendum.