Liberal Imperialist
Focusing on his writings, Haldane was passed over for political office, being the only one of his group left out in the wilderness. Haldane remained an ally of Asquith and Grey in the Liberal Imperialist wing of the party, followers of Lord Rosebery rather than of Sir William Harcourt. Rosebery admired Haldane's intellect, and the Scotsman urged upon his friend, whom he had known since 1886, an assault on Tory power in the Lords in 1894. Haldane joined friends at the Articles Club, including Asquith and Grey. Haldane was disappointed having failed to secure the post of Solicitor-General in October 1894. Asquith wryly remarked "A very wrong decision come to upon inadequate grounds." Haldane was sounded out for the Speakership by Rosebery, but refused it, declaring it to be a political death.
At a meeting with Beatrice Webb Haldane told her he was disconsolate at the condition of the Liberal Party: "Rot has set in there is no hope now but to be beaten and then reconstruct a new party". The leaders of the party were exasperated and believed Rosebery to lack planning and direction. "Although Asquith, Grey and I", wrote Haldane, "stuck by him... we never knew when he would retire and leave us in the lurch". When Rosebery offered the Speakership, he refused it that March. However, on 11 October 1896, he wrote to Rosebery that he "was the leader of a revolution in our party".
On 11 August 1902, Haldane was admitted to the Privy Council, following an announcement of the King's intention to make the appointment in the 1902 Coronation Honours list, published in June that year. The King used his influence and charm to cultivate allies, bringing cross-party groups like The Souls together in consensual amity. Balfour's administration leant on Haldane's philosophy for educational reforms.
After the Conservative government of Arthur Balfour fell in December 1905 there was some speculation that Asquith and his allies Haldane and Grey would refuse to serve unless Henry Campbell-Bannerman accepted a peerage, which would have left Asquith as the real leader in the House of Commons. Haldane had suggested involving the King at Balmoral to 'kick CB upstairs'. However, the plot (called "The Relugas Compact" after Grey's Scottish lodge where the men met) collapsed when Asquith agreed to serve as Chancellor of the Exchequer under Campbell-Bannerman.
Haldane wrote, "One longs for Rosebery had he been coming in to his right place at the head of affairs, we could have gone anywhere with confidence. But it seems now as if this were not to be and we have to do the only thing we can do, which is to resolutely follow a plan of concerted action".
On 13 December 1905, Haldane was appointed Secretary of State for War, but he may have been offered the jobs of Attorney-General and Home Secretary. (Grey became Foreign Secretary). Unity in the Liberals helped them obtain the largest electoral majority in the party's history in the 1906 general election.