The party was founded in 1939 as
Vinnuflokkurin. The party split from the
Self-Government Party over
land reform, and maintained a policy of
economic liberalisation and
social conservatism, with the party's support based in the fishing industry and private business. The People's Party entered a coalition government with the
Social Democratic Party in 1990, breaking the cycle of centre-right and centre-left coalitions. The party withdrew in 1993, being replaced by left-wing parties. In the
1994 Faroese election, the party lost over a quarter of its vote, remaining outside government. However, it did return in 1996, this time with the
Union Party, the
Self-Government Party, and the
Labour Front. under which the People's Party adopted a policy of seeking independence. The independence plan failed in 2001, after Denmark threatened to cut economic assistance earlier than anticipated. In the
following year's election, the party remained on 21% of the vote, and stayed in a renewed coalition that also included the
Centre Party. When chairman
Anfinn Kallsberg decided not to run for re-election, a new election was slated. There were two candidates, former minister of Fishery,
Jørgen Niclasen, and current minister of Industry,
Bjarni Djurholm. The election on 2 August 2007 gave Jørgen Niclasen the majority of the votes, making him the new party chairman. In the
Danish parliamentary elections of 2007 the party received 20.5% of the Faroese vote (down from the 24.1% it had won in 2005) and lost the seat it had previously held in the Danish national
Folketing. At the
2008 Faroese election, the party won 20.1% of the popular vote and seven out of 33 seats. In
early elections in 2011, the party won eight seats. In 2013,
Janus Rein, who was elected for Progress, joined the Peoples Party after being a member of the Løgting without any political membership for eleven months. After this event, the Peoples Party has nine of the 33 members of the Løgting. At the general election 2015, the party lost two seats, they got 18.9% of the votes and six members. Eight days after the election,
Annika Olsen who had received 961 personal votes, left the People's Party, which means that the party lost one member and now has five parliament members. On 4 February 2016 she became a member of the People's Party again. ==Ideology==