Norman Lamont facts for kids
Quick facts for kids
The Lord Lamont of Lerwick
|
|
|---|---|
Official portrait, 2019
|
|
| Chancellor of the Exchequer | |
| In office 28 November 1990 – 27 May 1993 |
|
| Prime Minister | John Major |
| Preceded by | John Major |
| Succeeded by | Kenneth Clarke |
| Chief Secretary to the Treasury | |
| In office 24 July 1989 – 28 November 1990 |
|
| Prime Minister | Margaret Thatcher |
| Preceded by | John Major |
| Succeeded by | David Mellor |
| Financial Secretary to the Treasury | |
| In office 21 May 1986 – 24 July 1989 |
|
| Prime Minister | Margaret Thatcher |
| Preceded by | John Moore |
| Succeeded by | Peter Lilley |
| Minister of State for Defence Procurement | |
| In office 2 September 1985 – 21 May 1986 |
|
| Prime Minister | Margaret Thatcher |
| Preceded by | Adam Butler |
| Succeeded by | The Lord Trefgarne |
| Minister of State for Trade and Industry | |
| In office 14 September 1981 – 2 September 1985 |
|
| Prime Minister | Margaret Thatcher |
| Preceded by | Norman Tebbit |
| Succeeded by | Peter Morrison |
| Parliamentary Under-Secretary of State for Energy | |
| In office 7 May 1979 – 5 September 1981 |
|
| Prime Minister | Margaret Thatcher |
| Preceded by | Alex Eadie |
| Succeeded by | David Mellor |
| Member of the House of Lords Lord Temporal |
|
| Assumed office 19 October 1998 Life peerage |
|
| Member of Parliament for Kingston-upon-Thames |
|
| In office 4 May 1972 – 8 April 1997 |
|
| Preceded by | John Boyd-Carpenter |
| Succeeded by | Constituency abolished |
| Personal details | |
| Born |
Norman Stewart Hughson Lamont
8 May 1942 Lerwick, Shetland, Scotland |
| Political party | Conservative |
| Spouses |
Rosemary White
(m. 1971; div. 1999) |
| Children | 2 |
| Education | Loretto School |
| Alma mater | Fitzwilliam College, Cambridge |
Norman Stewart Hughson Lamont, Baron Lamont of Lerwick (born 8 May 1942) is a British politician. He was a Member of Parliament (MP) for the Conservative Party. He represented Kingston-upon-Thames.
Lord Lamont served as the Chancellor of the Exchequer from 1990 to 1993. This is a very important job in the UK government, in charge of the country's money. He became a life peer in 1998, which means he joined the House of Lords for life. He has also supported groups that want the UK to have less involvement with Europe.
Contents
Early Life and Education
Norman Stewart Hughson Lamont was born on 8 May 1942 in Lerwick, in the Shetland Islands, Scotland. His father was a surgeon there. In 1953, his family moved to Grimsby, England.
He attended Loretto School, a private school in Scotland. Later, he studied economics at Fitzwilliam College, Cambridge. While at Cambridge, he was involved in student politics. He led the Conservative student group and was president of the Cambridge Union Society, a famous debating club.
Career Before Politics
Before becoming an MP, Norman Lamont worked in banking. He was part of N M Rothschild & Sons, a well-known investment bank. He became a director at Rothschild Asset Management.
Even after leaving Parliament, he continued to work in the financial world. He has been a director or advisor for various companies that deal with money and investments.
Early Political Journey
Becoming a Member of Parliament
Norman Lamont first tried to become an MP in 1970 for a different area. He did not win that election. However, two years later, on 4 May 1972, he won a special election (called a by-election) to become the MP for Kingston-upon-Thames.
Serving as a Junior Minister
Lamont served in different government roles for 14 years. He worked under two Prime Ministers, Margaret Thatcher and John Major. He held positions in departments dealing with energy, industry, defence, and the country's money (the Treasury).
In 1986, he moved to the Treasury. He became the Financial Secretary to the Treasury and then the Chief Secretary to the Treasury. In these roles, he helped manage the government's finances.
The Exchange Rate Mechanism (ERM)
In 1990, the UK decided to join the European Exchange Rate Mechanism (ERM). This was a system where European countries tried to keep the value of their money stable against each other, especially the German currency. The idea was to help control inflation, which is when prices go up.
Lamont was involved in this decision. He later helped John Major become Prime Minister.
Tackling Inflation and Recession
In 1991, Lamont made a famous statement in Parliament. He said that rising unemployment and a shrinking economy (a recession) were the "price" to pay to bring down inflation. At that time, inflation was very high.
After this, inflation did fall significantly. The economy also started to grow again. By 1993, the country's total economic output was higher than before the recession.
Chancellor of the Exchequer
When John Major became Prime Minister, Norman Lamont took over his role as Chancellor of the Exchequer. This meant he was in charge of the UK's economy and finances. He continued the policy of keeping the British pound linked to the ERM.
Managing the Economy
When Lamont became Chancellor, the main goal was to control inflation. Interest rates were very high to try and slow down price increases. This also caused the economy to slow down and enter a recession.
Lamont believed the recession would be short. In 1991, he famously said that "green shoots" of economic recovery were appearing. This comment was criticised at the time, but later, it was seen as quite accurate, as the economy did start to recover.
Negotiating the Maastricht Treaty
As Chancellor, Lamont was involved in talks about the future of Europe. These talks led to the Maastricht Treaty, which created the idea of a single European currency. Lamont was against the UK joining a single currency.
He worked to make sure that the UK would not have to join the single currency. He helped negotiate a special "opt-out" for Britain, meaning the UK could choose not to join if it wanted to.
Leaving the ERM
The ERM policy became very difficult to maintain. Germany's inflation rose, leading its central bank to increase interest rates. This put pressure on other countries in the ERM, including the UK.
On 16 September 1992, known as Black Wednesday, the UK was forced to leave the ERM. The government tried to keep the pound in the system by raising interest rates very high, but it did not work. Lamont faced a lot of criticism for this.
After leaving the ERM, Lamont seemed cheerful. He famously said his wife heard him "singing in the bath" that morning. This led to stories that he was happy about leaving the ERM.
Why Leaving the ERM Was Important
Many experts later said that leaving the ERM, though politically difficult, was good for the British economy. It allowed the government to set its own interest rates, which helped bring down inflation and restart economic growth.
Sir Alan Budd, a top economic advisor at the time, said that the ERM period, despite being a "political disaster," was an "economic triumph" because it helped control inflation.
After the ERM Exit
After leaving the ERM, Lamont had two main jobs. First, he needed a new plan for managing the country's money. He introduced a system called "inflation targeting." This meant the government would try to keep inflation within a specific range. This new approach was very important and later led to the Bank of England becoming independent in 1997, meaning it could set interest rates without political interference.
Second, he had to deal with the government's rising debt. The recession had reduced tax money and increased spending. In 1993, he announced tax increases to help fix the country's finances. These decisions were tough but were later praised for helping the economy recover and grow in the 1990s.
Resignation from Government
In May 1993, Lamont was asked about his famous "green shoots" comment and the "singing in the bath" story. He replied by quoting a French song, "Non, je ne regrette rien" (No, I regret nothing). This was seen as a defiant response.
Soon after, on 27 May 1993, Norman Lamont left his role as Chancellor. He felt he had been treated unfairly. In a speech to Parliament, he said the government seemed "in office but not in power."
After Being Chancellor
After leaving the Treasury, Norman Lamont became a strong critic of the government. He became known as a "Eurosceptic," meaning he believed the UK should have less involvement with the European Union. He even wrote a book called Sovereign Britain, suggesting the UK might leave the EU.
He is currently the vice president of the Bruges Group, an organisation that supports less European integration.
Views on Brexit
Lamont was one of the first major politicians to suggest that Britain might leave the European Union. In 1994, he argued that leaving the EU should be considered a serious option. He said he could not find "a single concrete advantage" for the UK being a member.
He believed that the UK was not "winning the argument in Europe" and that leaving might be necessary if the EU continued to move towards a single government. His early ideas helped shape the debate that led to the Brexit referendum many years later.
Leaving Parliament
For the 1997 general election, Norman Lamont's old constituency was changed. He tried to become a candidate for a new area but lost. He then tried for another seat in Yorkshire but was not elected.
In 1998, he was made a life peer as Baron Lamont of Lerwick. This allowed him to become a member of the House of Lords.
Later Activities
In 1998, when the former leader of Chile, General Augusto Pinochet, visited Britain, there was a debate about whether he should be arrested. Lamont defended Pinochet, calling him a "good and brave and honourable soldier."
He has continued to be involved in economic discussions. He became the president of the Economic Research Council, a long-standing economic think tank in Britain. In 2008, he was asked by David Cameron, who later became Prime Minister, to give advice on the economy during a financial crisis.
In 2015, he provided advice to Yanis Varoufakis, who was the Greek Finance Minister at the time, during Greece's debt negotiations.
