Tautas partija was founded in 1998 by Andris Šķēle, a businessman and former prime minister, who was the chairman of the party until 2002.

At the October 2002 elections the party became the third largest in the Saeima (parliament), winning 16.7% of the vote and 20 seats.

At the legislative elections, on 7 October 2006, the party won 19.49% of the popular vote and 23 out of 100 seats in the Saeima, becoming the largest party in parliament and maintaining its status as leader of the coalition government, with Kalvītis as prime minister.

], it was done in order to avoid repaying a Ls1.03 million campaign donation it received and spent illegally in 2006, but party chairman Andris Šķēle denied that.

[3] On September 22, 2011, the Senate of the Supreme Court of Latvia refused People’s Party appeal against the Corruption Prevention and Combating Bureau's decision to make it pay back 1.03 million lats,[4] however on December 16, 2011, the People's Party was declared insolvent by the Riga City Central District Court.