The economic crisis that finally overwhelmed Ramsay MacDonald's Labour government in August 1931 was accompanied by political upheavals that affected all three mainstream political parties. Divisions, splits and new political configurations became characteristic of 1930 − 2, amongst which was the New Party launched by Sir Oswald Mosley in February 1931. Initially, at least, Mosley's stated objective was to offer an immediate and practical solution to the economic problems then facing the country. Over time, however, his party took on a more permanent nature, eventually paving the way for the formation of the British Union of Fascists. This article looks at the process of such transformation, and endeavours to explain contemporary and historiographical confusion as to what the New Party entailed. This article is part of an AHRC-funded project examining the history of the New Party.