At the 1935 general election Holdsworth secured a straight fight against Labour in Bradford South, which Roy Douglas, a historian of the Liberal Party, has suggested was a strong indication that some kind of collusive arrangement with the Conservatives had been entered into.

[2] Douglas's suspicion is strengthened by Holdsworth's decision in 1938 to join the Liberal Nationals the political group led by Sir John Simon.

In his letter of resignation to the leader of the official Liberals, Sir Archibald Sinclair he gave as his principal reason his wish to continue supporting the foreign policy of Prime Minister Neville Chamberlain and his efforts to bring peace by direct negotiation and personal contact with the European dictators.

Holdsworth decided not to fight Bradford South when the 1945 general election came, possibly on grounds of ill-health.

Holdsworth also served as a Justice of the Peace in Bradford[1] and was knighted for political and public services in the 1944 New Year's Honours List.