Nigel Lawson dies: The life of Thatcher’s chancellor, from political clashes to the Big Boom and climate scepticism
Nigel Lawson, chancellor to Margaret Thatcher, has died at the age of 91.
He leaves behind five of his six children, including TV chef Nigella Lawson and journalist Dominic Lawson. One of his daughters, Thomasina, died aged 32.
Born in Hampstead, northwest London, on 11 March 1932, the son of the owner of a tea-trading firm climbed his way to the top of British politics after an education at Westminster School and Oxford University.
His political life started at Oxford, where he did Philosophy, Politics and Economics – like many other politicians – but he began his working life carrying out national service as a Royal Navy officer.
Lord Lawson, as he was to become, then became a financial journalist, writing for the Financial Times and The Sunday Telegraph, before becoming editor of The Spectator.
After 14 years as a journalist, in 1970 he stood to become an MP, unsuccessfully, for the Eton and Slough seat before eventually winning the now-defunct Leicestershire constituency of Blaby four years later.
When the Conservatives won the election in 1979 under Mrs Thatcher, she made him financial secretary to the Treasury and her policies at the time clearly reflected his influence.
She then promoted him to energy secretary, where he helped prepare for what he called “inevitable” full-scale strikes in the coal industry, which had been nationalised by Labour prime minister Clement Attlee.
But it was as chancellor that Mr Lawson ensured he would go down in the history books.
Margaret Thatcher’s cabinet in 1983. Nigel Lawson is sitting third from the left
Tax cuts, the Big Bang and the Lawson Boom
The second longest-serving chancellor after Gordon Brown, Mr Lawson was key to Mrs Thatcher’s economic policies – and success.
After getting the job in 1983 he pushed ahead with tax reforms, reducing corporation taxes and lowering National Insurance contributions for the lower-paid, while extending the VAT base.
From 1986, his public image grew after he reduced the standard rate of personal income tax and unemployment began to fall.
He also managed to turn around government finances from a budget deficit of £10.5bn in 1983 to a surplus of £3.9bn in 1988 and £4.1bn in 1989.
However, the government’s current account deficit increased from below 1% GDP to almost 5% in three years.
Mr Lawson managed to honour his promise to bring taxation rates down, with the basic rate going from 30% to 25%, and the top tax rate from 60% to 40%. He also removed other higher rates so nobody paid above 40% in personal tax.
One of his major triumphs was the Big Bang of 1986, which saw the City’s financial markets deregulated and London strengthened as a financial capital – but in 2010, he admitted the “unintended consequence” of that was the 2007 financial crisis.
He even had a period of economic growth named after him. The Lawson Boom saw the UK economy on the up after 1986, with unemployment halved.
However, that led to a rise in inflation to 8% in 1988 and interest rates doubled to 15% within 18 months, with critics accusing Mr Lawson of unleashing an inflationary spiral due to his policies.
In his 1992 memoir, written just after he stepped down as an MP, Mr Lawson admitted the 1987 manifesto was not properly thought through and if it had not been for the economic growth, the manifesto would have been a disaster.
“As it was, it was merely an embarrassment,” he said.
Mr Lawson with a battered red Budget Box in 1987
Clashes with Thatcher
While he was Mrs Thatcher’s right-hand man, the pair did not always see eye-to-eye and he was overruled in cabinet when he opposed introducing a poll tax to replace local government financing.
There was also the now-infamous 1988 budget, which took nearly two hours for Mr Lawson to announce as there were continuous interruptions and protests from opposition parties.
The then-depute leader of the Scottish National Party, Alex Salmond, was suspended from the Commons for his constant interruptions and MPs voted against amending the law bill.
Nigel Lawson with Margaret Thatcher at the 1989 Conservative Party Conference
Mrs Thatcher and her chancellor also clashed over the exchange-rate mechanism (ERM) membership in 1985, with Mr Lawson – ironically, as he became a Brexiteer – believing membership was the only way forward to help convince the markets the UK was committed to fiscal discipline.
It proved to be one of Mrs Thatcher’s most tumultuous meetings with her senior ministers as she single-handedly faced them down after Mr Lawson had spoken separately to all of the ministers present to persuade them to ambush her.
Mr Lawson later said he had considered resigning after she said their arguments did not convince her, but he was dissuaded by colleagues. Mrs Thatcher was persuaded to sign up to the ERM five years later by Mr Lawson’s successor, John Major.
The prime minister’s relationship with her chancellor took another dive when she re-employed economist Alan Walters in 1989 as her personal economic adviser, with Mr Lawson at loggerheads with them over the ERM.
He threatened to resign if Mrs Thatcher did not sack Mr Walters over his support of the ERM. Mrs Thatcher wrote in a private memo that was “absurd” and urged him to rethink – and Mr Lawson quit.
National Archive files released in 2017 revealed the extent Mr Walters was briefing against Mr Lawson, including telling Mrs Thatcher that Mr Lawson’s position over the ERM was having a devastating impact on the UK economy.
Mr Lawson’s resignation was seen as the beginning of the end for Mrs Thatcher, with her foreign secretary Geoffrey Howe resigning shortly after – and Mrs Thatcher resigned in 1990 after Michael Heseltine decided to challenge her for leadership of the Conservative Party.
Post-Thatcher
Mr Lawson remained as a backbencher until 1992, when he was elevated to the House of Lords with a life peerage, and was known as Lord Lawson of Blaby.
Months after he stood down as an MP, he lost five stone after his doctor told him his knee problems would not stop if he continued to carry the weight.
It dramatically changed his appearance and he published The Nigel Lawson Diet Book, which became a best seller.
Previously 17 stone and 5ft 9, he had been an easy target for political cartoonists – although it did not bother him – and he admitted after losing weight: “I was certainly a fat man.
“It came up gradually, and by the time I was chancellor, certainly, that was the thing the cartoonists seized on; that was part of the image – no doubt about it.”
Mr Lawson used his time away from the Commons to occasionally appear as a guest on daughter Nigella’s cookery shows.
He also served on the advisory board of the Conservative magazine Standpoint.
Two wives, six children
Mr Lawson was married twice. His first wife was former ballet dancer Vanessa Salmon with whom he had Dominic (the journalist), Thomasina (who died of breast cancer aged 32), Nigella (the TV chef) and Horatia. After they divorced, Ms Salmon died of liver cancer aged 48.
His second wife was former Commons researcher Therese Maclear, who he married the same year he divorced Ms Salmon. They had son Tom and daughter Emily before they divorced in 2008.
Nigel Lawson with his TV chef daughter Nigella Lawson in 2008
In 2011, he found love again at the age of 79 with 42-year-old Dr Tina Jennings, a former banker who was previously married to New Zealand’s richest man.
However, they split up two years later, with Dr Jennings reportedly finding it hard to go regularly to France, which Mr Lawson did every weekend.
Controversial support for Brexit
In 2009, Mr Lawson was caught up in the parliamentary expenses scandal after he was accused of claiming £16,000 in overnight allowances by registering his farmhouse in Gascony, southwest France, as his main residence.
In 2013, the former chancellor pushed for the UK to leave the EU and ahead of the 2016 referendum he was appointed chairman of the Vote Leave campaign.
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Nigel Lawson on George Osborne’s 2016 Autumn Statement
At the time, he was living in France and in 2018 started to apply for his official French residency card.
His critics accused him of hypocrisy for living in France yet campaigning for the UK to leave the EU, but he said he did not believe the issue of Britons living in other EU countries was a big problem in the Brexit negotiations.
In 2019, Mr Lawson returned to live in the UK after putting his Gascony mansion on the market. He said it was to be close to his children and grandchildren.
Climate scepticism
In opposition to Mrs Thatcher, who helped put climate change on the agenda, Mr Lawson was very sceptical of the concept and denied global warming is taking place to such a large degree as many scientists say.
He wrote a letter in 2004 criticising the Kyoto Protocol and claiming there were substantial scientific uncertainties.
As a member of the House of Lords Economics Affairs Select Committee, he carried out an inquiry into climate change in 2005 and recommended the Treasury take a more active role in climate policy.
The report said there was a mismatch between the economic costs and the benefits of climate policy – which kicked off a tussle between him and Michael Grubb, chief economist of the Carbon Trust.
He contributed to the 2007 documentary The Great Global Warming Swindle and in 2008 published a book called An Appeal to Reason: A Cool Look at Global Warming.
In the book, he admitted global warming is happening and will have negative consequences but said the impact of those changes will be moderate rather than apocalyptic, and criticised “alarmist” politicians and scientists.
He was heavily denounced by climate scientists and the UK’s chief scientific adviser at the time, Sir John Beddington, who privately told Mr Lawson he had “incorrect” and “misleading” claims in the book.
But that did not stop him airing his views, and in 2009 he launched a new thinktank called The Global Warming Policy Foundation.
His journalist son, Dominic Lawson, is also a climate change sceptic.
Two men have been arrested by armed officers after multiple people were stabbed on a train.
The train was stopped at Huntingdon station, in Cambridgeshire, after police were called at around 7.40pm on Saturday.
Cambridgeshire Police said a number of people have been taken to hospital, while a “large-scale response” was deployed by the East of England Ambulance Service.
Video shared online which appears to have been filmed from a railway bridge shows a huge police response with armed officers running along the platform towards the train carriages.
Gavin saw injured passengers
Witnesses told Sky News the stabbings started around 10 minutes after the 6.25 train from Doncaster to London King’s Cross left Peterborough and passengers sounded the emergency alarm.
One man who was on the train told Sky News he saw someone coming though his carriage saying: “They’ve got a knife, I’ve been stabbed.”
“They were making their way through the carriage to get away from the suspects. They were extremely bloodied,” said the man who gave his name as Gavin.
He said by the time the train pulled up “they were basically on the floor”.
“That person ended up collapsing on the floor. They were taken to an ambulance pretty much straight away,” he said.
Gavin said passengers were ushered out into the station and “there were multiple people who had been stabbed making their way down”.
But he said one of the suspects had also come off the train and was “running rampant as well”, and was “waving a large knife” before he was taken down by armed officers with a taser.
Pic: Police at Huntingdon train station
London North Eastern Railway, which operates East Coast Mainline services in the UK, said all lines are blocked around Huntingdon station, with major disruption expected until the end of the day.
Police said the A1307 has been closed on the approach to the town centre and the incident remains ongoing.
Cambridgeshire Police said in a statement: “We were called at 7.39pm with reports that multiple people had been stabbed on a train.
“Armed officers attended and the train was stopped at Huntingdon, where two men were arrested.
“A number of people have been taken to hospital.
“The incident remains ongoing and the A1307 has been closed as you approach the town centre.”
Huntingdon MP Ben Obese-Jecty said in a post on X he was “aware of the incident” and “trying to establish further information”.
“My thoughts are with the victims and those involved,” he wrote.
Prime Minister Sir Keir Starmer said the “appalling incident” was “deeply concerning”.
“My thoughts are with all those affected, and my thanks go to the emergency services for their response,” he wrote on X.
“Anyone in the area should follow the advice of the police.”
The Home Secretary said she was “deeply saddened” by the incident in Huntingdon and urged the public to “avoid comment and speculation at this early stage”.
In a statement on X, Shabana Mahmood said: “Two suspects have been immediately arrested and taken into custody.
“I am receiving regular updates on the investigation.”
Speaking to Sky News at the scene, Huntingdon MP Ben Obese-Jecty said: “When I first arrived here, I’ve simply never seen as big a response to an emergency incident as there were in terms of police, fire and ambulance.”
Shadow Home Secretary Chris Philp said on X: “Horrific scenes in Huntingdon, in what seems to be a brutal mass attack by two perpetrators.
“My thoughts are with all those injured or affected and the emergency services responding The police and government should provide an update on what happened and who has been arrested as soon as possible
Tory party chairman Kevin Hollinrake also described the scenes as “horrifying”.
“My thoughts are with the victims and the emergency services responding to this incident,” he wrote on X.
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A Land Rover was spotted leaving Royal Lodge – the home of Andrew Mountbatten Windsor – on Saturday morning, as more US politicians call for him to testify before a congressional committee.
Emails released on Friday in unsealed court documents shed new light on Andrew’s correspondence with Epstein.
Months after the paedophile financier was released from prison in 2009 for prostituting minors, Andrew wrote that it would be “good to catch up in person”.
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Will Andrew have to give evidence on Epstein?
The pair were pictured together in New York’s Central Park in December 2010, in a meeting Andrew later claimed was to end their friendship.
In Congress, the House Oversight Committee is investigating the Epstein affair, and several of its members have invited Andrew to come and give evidence, presenting it as an opportunity to clear his name.
Meanwhile, Virginia Giuffre’s family have called for Andrew to be “investigated” over her claims that – as a teenager – she had sex with Andrew on three occasions after being trafficked by Epstein and Maxwell.
Andrew has always denied the claims. Ms Giuffre sued in 2021 and the case was settled outside of court for a sum believed to have been around £12m.
In an interview with Gareth Barlow on Sky News, Ms Giuffre’s brother Sky Roberts praised the King for stripping his brother of his remaining titles and ousting him from Royal Lodge.
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Virginia Guiffre’s family sends message to King
Andrew set for six-figure sum
Andrew could be in line for a six-figure payout and an annual payment as part of his “relocation settlement” after being forced out of the Royal Lodge, the Guardian reported.
One option includes an initial six-figure sum followed by an annual payment, which would be paid from the King’s private funds, and is thought to be several times his £20k-a-year navy pension, sources told the newspaper.
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He will move from Windsor to private accommodation in Sandringham, Norfolk. But on Saturday, people in Sandringham had mixed views about the move.
One man told Sky News he would be unwelcome: “This is a lovely, peaceful area. His reputation now is tarnished, and, I don’t think it’s right.
“This is where the royals come for Christmas… and come throughout the year. And, I don’t think people local really want to see him here.”
But another man was more sympathetic: “He hasn’t been found guilty of anything in my view. So and people forget that he was a war hero in the Falklands. That’s all gone now, isn’t it? Nobody’s thinking that he’s done any good.”
Public supports Charles, poll shows
A poll has revealed the public supports the King’s decision to strip Andrew of his titles and remove him from the Royal Lodge.
Of the 4,739 people surveyed by YouGov, 79% said it was “the right decision” to “strip Andrew Mountbatten Windsor (formerly Prince Andrew) of his prince title”.
But when asked about the speed of King’s response to the Andrew-Epstein revelations, 58% of respondents said the monarch moved “too slowly”.
Police provide update
The Metropolitan Police has given Sky News an update on allegations that Andrew asked a royal close protection officer to “dig up dirt” on Virginia Giuffre in 2011.
When reports first emerged two weeks ago, the force said it was “actively looking into the claims”.
On Saturday, the Met said: “Following recent media reporting on the actions of officers in relation to this matter, we are considering whether any further assessment or review is necessary.”
Meanwhile, the police watchdog, the Independent Office for Police Conduct (IOPC), issued a statement regarding allegations that Andrew’s royal close protection officers had obstructed lawyers serving a lawsuit from Virginia Giuffre in 2021.
The IOPC said: “We have not received any referrals in relation to this matter at this time.”
Read more from Sky News:
Why Andrew is still in line to the throne
The Sandringham homes he could move to
Graham Smith, from the anti-monarchy group Republic, told Sky News: “The problem that the royals have is that there’s going to be more information coming out, more scandals, more accusations and more emails.
“The idea that essentially… he’s [Andrew] told to live in a very large house, given a half million pound stipend, and told to use his own name, is any kind of punishment, is absurd in most people’s eyes.”
In the next few days, the King is expected to submit the royal warrant, affecting the dukedom, and letters patent, which will formally remove Andrew’s entitlement to use the title prince and HRH style.
“I hate it,” Shirley told us.
Every time she has to give her address, it leads to a snide remark or joke at her expense.
She’s lived on Prince Andrew Drive in Telford, Shropshire, for 35 years.
As the national scandal around Andrew Mountbatten Windsor – as he is now called – has deepened, it has become increasingly embarrassing for her.
Andrew latest: Virginia Giuffre’s brother calls for investigation
A few years ago, another resident started a petition to change the name of the road, and somebody covered up part of the street sign.
“I think we should change it,” Shirley told us, “but don’t ask me what to.”
Shirley is one of the residents calling for the street to be renamed
After a few minutes weighing up the options, she settled on Prince George Drive.
“At least that looks to the future,” she added.
Linda Boden has lived on the road even longer – she and husband Phil moved here after getting married 45 years ago.
“We have actually had the conversation this morning, that the name of this road will get changed,” Linda said.
Phil told us he wasn’t bothered about the name. “It’s just a name, it’s not the man… I can’t tell you what I think [about him] without swearing you know.”
A bird’s eye view of Prince Andrew Drive
Cheryl, who lives nearby, told us what really mattered to her were the victims of the Jeffrey Epstein scandal – particularly the late Virginia Giuffre.
“That poor girl needs justice,” she said. “It is ridiculous it has gone on this long to be perfectly honest. That poor family are still living with it.”
Read More:
Andrew loses his titles – everything we know
The Sandringham homes he could move into
Cheryl’s focus is on Virginia Giuffre
Julie Harper lives on the adjacent road, called Queen Elizabeth Way, and is more than happy with her road name.
She told Sky News that the King had made the “best decision ever” by removing his brother’s titles.
I asked where her sympathies lay within this long-running royal scandal and Julie was unequivocal.
“With anybody who has been sexually exploited,” she said bluntly.
Julie believes Princess Anne Drive would be a better name for her neighbours’ road.
“She’s one of the better ones,” she added.
Julie lives on the nearby Queen Elizabeth Way and suggests a renaming that would stick to the royal theme
Changing the road name would be a logistical headache for local authorities and residents, with some telling us it did not bother them and they would not fancy the extra paperwork to amend things such as household bills and driving licences.
But Postman Gary told us every time he’s making deliveries on Prince Andrew Drive, he feels for the residents.
“We have a little giggle because we know they don’t want it named that anymore and I wouldn’t either if I lived here. It’s probably time it changed.”
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‘Huge’ part of royal statement you might have missed
We did not find anyone on Prince Andrew Drive who disagreed with the King’s decision to remove his titles and oust him from his home in Windsor.
The monarchy needs to retain the support of the public across the UK – that’s one of the reasons the King has taken such decisive action at this point in the scandal.
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