After losing his seat in Parliament, Beetham considered resigning as Social Credit leader but was persuaded to stay on after being offered a full-time salary to do so. His health improved but the party's popularity continued to declined. In 1985 Social Credit rebranded itself as the New Zealand Democratic Party, a move Beetham had little enthusiasm for. Internal dissent began to set in and Knapp tried to convince Beetham to stand aside as leader. Beetham refused to resign and Knapp resigned as deputy leader in protest.