There was tacit co-operation between Labour and the opposition Liberals in some seats at the 1923 general election, and Wedgwood ran unopposed in Newcastle-under-Lyme. Having been re-elected Vice-Chairman of the party in 1922 and 1923, Wedgwood expected a seat in the Cabinet when Labour formed its first government at the start of 1924. There was speculation in the press that he would be made First Lord of the Admiralty and some expectation that he would become Secretary of State for the Colonies or for India. Sidney Webb believed Wedgwood would prefer to become President of the Board of Trade, and was willing to step aside in his favour. However, Ramsay MacDonald initially offered him only the junior position of Financial Secretary to the Treasury. After some pressing, MacDonald gave him a seat in the Cabinet, but with the sinecure title of Chancellor of the Duchy of Lancaster rather than a departmental portfolio. In this capacity, he performed various de facto tasks in government. Later in the year, he was appointed Chief Industrial Commissioner, succeeding Arthur Henderson in a difficult position as the government's decision to maintain some of its predecessor's policies on industrial action caused much friction within the Labour movement. He was sworn into the Privy Council in 1924.