After the Hungarian Revolution of 1956, Larsen condemned the Soviet Union's action. This led him into conflict with the members of the party leadership who had a greater loyalty to Moscow; a conflict that ended with his expulsion in November 1958. Larsen's reaction was to establish the Socialist People's Party ("Socialistisk Folkeparti", abbreviated "SF"), which, thanks to Larsen's personal popularity, entered parliament at the 1960 election at the expense of the Communists, who from then on played only a very peripheral role in Danish politics.