Sir William Harcourt (1827-1904) had a career in law and journalism before entering Parliament in 1868, as a moderately radical Liberal. He had his first taste of office in 1873, and was home Secretary in Gladstone's government of 1880-85 and chancellor of the exchequer in his administration of 1886. When Gladstone and the liberals were returned to power in 1892, Harcourt resumed the chancellorship, and was widely regarded as a natural successor to the premier, despite his abrasive personality. But on Gladstone's resignation in 1894 the Queen asked Lord Rosebery to form a government, and Harcourt accepted office - the chancellorship again with the Leadership of the House of Commons - under him. The Rosebery administration lasted for little more than a year before it fell apart as a result of the personal and political disagreements of its Leaders; it resigned in 1895 and was defeated at the subsequent election. Rosebery gave up the Leadership soon after, but the party did not choose a new overall Leader until 1899; Harcourt himself had resigned as the party's Leader in the Commons in 1898.

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