Despite the boost the Liberals had received in the run-up to the 1923 general election with the reunion of the Lloyd George and Asquithian wings of the party Guedalla was unable to gain Derbyshire North East and fell to the foot of the poll behind the Conservatives. However in the summer of 1931 an economic crisis led to the formation of a National Government led by prime minister Ramsay MacDonald supported by a small number of National Labour MPs and initially backed by the Conservative and Liberal parties. In 1919 he married Nellie Maude Reitlinger the daughter of a banker.
His wit and epigrams are well-known one example being "Even reviewers read a Preface" another being "History repeats itself. Historians repeat each other.