London Daily

Focus on the big picture.
Wednesday, Nov 04, 2026

Why Geoffrey Howe was the greatest chancellor since the Second World War

Why Geoffrey Howe was the greatest chancellor since the Second World War

Sky's Ian King rates and ranks the UK's chancellors from the past 70 years.

Among the many tributes being paid to the late Conservative chancellor Nigel Lawson, perhaps the most striking came from Nicholas Macpherson, a former permanent secretary to the Treasury.

Lord Macpherson tweeted: "One of the great Chancellors of the 20th century.

"His microeconomic reforms particularly on tax were both daring and substantial, and have stood the test of time. His intellectual energy and openness to debate was inspirational in the Treasury of the 1980s."

That is a huge testimony coming from someone who worked at HM Treasury for nearly 30 years and who served every chancellor from Lord Lawson to George Osborne.

Few people, regardless of their political persuasion, dispute Lord Lawson's achievements.

Rating the post-war chancellors

But where does he stand in the pantheon of post-war chancellors?

A very personal view is that, while Lawson (1983-89) was certainly one of the greatest post-war chancellors, he was not the greatest.

While he was an imaginative and courageous reformer, whose actions both inside and outside the Treasury undoubtedly boosted the competitiveness of the UK economy and the living standards of many Britons, he also presided over an inflationary over-heating in the economy that ultimately led to the recession of the early 1990s.

No, the accolade of Britain's best post-war chancellor must surely go to his predecessor Geoffrey Howe (1979-1983), a reforming chancellor who did much of the heavy lifting that made possible Lawson's later tax-cutting reforms.

Life in the 1970s

For anyone who was not there at the time, it is almost impossible to describe the depths to which the UK economy had sunk during the late 1970s, the sheer state of decrepitude in the public finances and, indeed, the public realm.

Looking back, almost 40 years on, it is astonishing to think that Britons were once subject to foreign exchange controls limiting the amount of money they could take out of the country.

Changing that was one of Howe's many reforms.

Despite his low-key demeanour, Howe was a radical, sweeping away not only controls on foreign exchange (a particularly revolutionary measure in which he had been encouraged by Lawson), but also on credit, pay and dividends.

He was also brave, daring to raise taxes in his 1981 budget, despite the country being in a recession at the time. It was a measure essential to restore order to the public finances even if it came at the price of hastening the deindustrialisation for which many on the left still despise the Conservatives.

A gift from Ken Clarke

Another Conservative of the 1979-1997 era, Ken Clarke (1993-1997), also deserves to rank highly among post-war chancellors.

Clarke, again, was a bold chancellor unafraid of taking tough decisions to strengthen the public finances.

The public sector borrowing requirement fell sharply during his time in office and, admittedly benefiting from a cheaper pound in the wake of 'Black Wednesday', he presided over a long period of unbroken growth in GDP.

Clarke bequeathed to his successor, Gordon Brown (1997-2007), an economy firing on all cylinders. Not that Brown appreciated it.

A fly-on-the-wall ITV documentary, covering his early weeks at the Treasury, captured a moment at which officials spelled out to the new chancellor just how strong an economy he had inherited. Brown growled in response: "What do you want me to do? Send a thank-you letter?"

Insufficient credit but also debits for Gordon Brown

Brown's own record is decidedly mixed.

His greatest achievement was to hand operational independence to the Bank of England - at a stroke giving the financial markets confidence that the UK was serious about keeping inflation under control.

Interest rates were lower, as a result, than they would have been had they continued to be set by politicians.

That, and the strength of the public finances, enabled Brown to preside over one of the long periods of economic growth in British history.

Another fine achievement - one for which he probably does not receive sufficient credit - was resisting the urgings of Tony Blair, his prime minister, for Britain to join the eurozone.

In the debit column, Brown's controversial tax raid on pensions early in his chancellorship did enormous and lasting damage to retirement savings in this country.

That very few private sector workers now enjoy gold-plated 'final salary' pensions now is a direct consequence of that raid.

It was also under Brown, who consistently borrowed more than he had previously forecast, that the progressive deterioration in the UK's public finances began.

Brown also introduced more complexity into the tax code that hurt Britain's competitiveness while his shake-up of financial regulation, stripping the Bank of regulatory oversight of the banking sector, was arguably a contributing factor behind why the UK suffered more damage from the global financial crisis than some of its peers.

Underrated chancellors

Some chancellors are under-rated at the time and especially at the time they leave office.

Norman Lamont was chancellor in the early 1990s


Into this category falls Norman Lamont (1990-1993), chancellor at the time of Black Wednesday, whose tenure at the Treasury is now more kindly regarded by economic historians now than it was by commentators at the time.

It also applies to Roy Jenkins (1967-1970), who restored stability to the economy following the devaluation crisis of November 1967, while also being unafraid to impose austerity despite it proving politically parlous.

Jenkins also left one of the most memorable and lasting quotes of any chancellor with his quip that inheritance tax is "a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue".

Difficult to assess chancellor


Some chancellors are unfortunate in that their terms of office were just too short for a proper assessment of how well they did.

John Major (1989-1990) falls into that category, as do most of the chancellors of the 1950s, with the possible exception of Peter Thorneycroft (1957-1958), who is sometimes described as a 'John the Baptist' figure for Howe, such was his determination to bring public spending under control and bring order to the public finances.

Other chancellors are difficult to assess because their terms of office coincided with great national crises that make it hard to judge how well they might have done in other circumstances.

Some would argue that applies to Hugh Dalton (1945-1947) although it must be said that, over time, his tenure at the Treasury has become less kindly viewed.

Alistair Darling was chancellor between 2007 and 2010


It probably applies, though, to Alistair Darling (2007-2010), to whom fell the task of navigating the economy through the financial crisis and its aftermath and to Philip Hammond (2016-2019), the first chancellor to try to manage the economy as the UK went through the convulsions which followed the Brexit referendum.

But the one chancellor who did manage the economy through a crisis and who demonstrably succeeded in that task, though, is Howe.

Newsletter

Related Articles

0:00
0:00
Close
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
×