Chief Secretary to the Treasury (1987–1989) Following the
1987 general election, in which Major retained his seat with an increased majority, he was promoted to the
Cabinet as
Chief Secretary to the Treasury, making him the first MP of the 1979 intake to reach the Cabinet. The then-Chancellor
Nigel Lawson generally made significant decisions with little input from others, and Major was put in charge of agreeing departmental budgets with the
Secretaries of State. These discussions went well, and for the first time in several years budgets were agreed without recourse to the external adjudication of the so-called '
Star Chamber'. Major successfully concluded a second round of such spending reviews in July 1988. Whilst Chief Secretary Major took part in discussions over the future funding of the
NHS, against the background of an NHS strike in February 1988 over pay, resulting in the 'Working for Patients'
white paper and subsequent
National Health Service and Community Care Act 1990. Major also insisted, in discussions with Thatcher, that government assistance should be provided to support the sale of
Short Brothers to
Bombardier, an aerospace company and major employer in Northern Ireland which might otherwise have collapsed.
Foreign Secretary (July–October 1989) In 1987–1988, it became clear that Major had become a 'favourite' of Thatcher's and he was widely tipped for further promotion. Nevertheless, Major's appointment to
Foreign Secretary in July 1989 came as a surprise due to his relative lack of experience in the Cabinet and unfamiliarity with international affairs. Major found the prospect daunting, and unsuccessfully attempted to convince Thatcher to allow him to stay on at the Treasury. There were also fears within the
Foreign & Commonwealth Office (FCO) that Major would be Thatcher's 'hatchet-man', as her relations with the department under
Geoffrey Howe had been poor and characterised by mutual distrust. Major accepted the job and began to settle into the department, living in an upstairs room at the FCO and devolving decision making where necessary, though he found the increased security burdensome and disliked the extensive ceremonial aspects of the role. Amongst Major's first acts as Foreign Secretary was to cancel the sale of
Hawk aircraft to
Iraq, over concerns they would be used for internal repression. He represented Britain at the Paris Peace Conference to determine the future of
Cambodia. Major also met with US secretary of state
James Baker, with whom he primarily discussed the issue of
Vietnamese boat people, and with
Qian Qichen,
Foreign Minister of China, becoming the first senior Western politician to meet with a Chinese official since the
violent crackdown of pro-democracy protesters in
Tiananmen Square the previous month. Discussions focused primarily on the future of
Hong Kong, which Britain was scheduled to hand over to China in 1997. Major spent most of a summer holiday that year in Spain conducting extensive background reading on foreign affairs and British foreign policy. Upon his return to the UK he and Thatcher met with French president
François Mitterrand, in which the future direction of the
European Community was discussed. In September 1989, Major delivered a speech at the
United Nations General Assembly, in which he pledged to support Colombia's effort to tackle the drugs trade and reiterated Britain's opposition to the
apartheid regime in South Africa. Major also met US president
George H. W. Bush in Washington, D.C. and
Domingo Cavallo, the Argentine
foreign minister, the first such meeting since the end of the
Falklands War seven years earlier. Major's last major summit as Foreign Secretary was the
Commonwealth Heads of Government Meeting (CHOGM) in
Malaysia. The meeting was dominated by the issue of
sanctions on South Africa, with Britain being the only country to oppose them, on the grounds that they would end up hurting poorer South Africans far more than the apartheid regime at which they were aimed. The summit ended acrimoniously, with Thatcher controversially and against established precedent issuing a second final communiqué stating Britain's opposition to sanctions, with the press seizing on the apparent disagreement on the matter between Major and Thatcher.
Chancellor of the Exchequer (1989–1990) After just three months as Foreign Secretary Major was appointed Chancellor of the Exchequer on 26 October 1989 following the sudden resignation of
Nigel Lawson, who had fallen out with Thatcher over what he saw as her excessive reliance on the advice of her Economic Adviser
Alan Walters. The appointment meant that, despite only being in the Cabinet for a little over two years, Major had gone from the most junior position in the Cabinet to holding two of the
Great Offices of State. Major made tackling inflation a priority, stating that tough measures were needed to bring it down and that "if it isn't hurting, it isn't working." He delivered his first
Autumn Statement on 15 November, announcing a boost in spending (mainly for the NHS) and with interest rates to be kept as they were. As Chancellor, Major presented only
one Budget, the first to be televised live, on 20 March 1990. He publicised it as a 'budget for savers', with the creations of the
tax-exempt special savings account (TESSA), arguing that measures were required to address the marked fall in the household
savings ratio that had been apparent during the previous
financial year. Major also abolished the composite rate tax and
stamp duty on share trades, whilst increasing taxes on alcohol, cigarettes and petrol. Tax cuts were also made which benefited football associations, the aim being to increase funding on safety measures following the
Bradford City stadium fire and
Hillsborough disaster. Extra funding was also made available to Scotland in order to limit the impact of the
Community Charge (widely dubbed the 'Poll Tax'), which had been introduced there that year. The European Community's push for full
Economic and Monetary Union (EMU) was another important factor in Major's time as Chancellor; in June 1990 he proposed that instead of a single European currency there could instead be a 'hard
ECU', which different national currencies could compete against and, if the ECU was successful, could lead to a single currency. The move was seen as a wrecking tactic by France and Germany, especially when the increasingly
Euro-sceptic Thatcher announced her outright opposition to EMU, and the idea was abandoned. More successfully, Major managed to get the new
European Bank for Reconstruction and Development (EBRD) located in London. By early 1990, Major had become convinced that the best way to combat inflation and restore macroeconomic stability would be if the British pound were to join the
European Exchange Rate Mechanism (ERM), and he and
Douglas Hurd (Major's successor as Foreign Secretary) set about trying to convince a reluctant Thatcher to join it. The move was supported by the
Bank of England, the Treasury, most of the Cabinet, the Labour Party, several major business associations and much of the press. With the '
Lawson Boom' showing signs of running out of steam, exacerbated by rising oil prices following Iraq's
invasion of Kuwait in August 1990, there were fears of a potential recession and pressure to cut interest rates. Thatcher finally agreed on 4 October, and Britain's entry into the ERM at a rate of
DM 2.95 to £1.00 (with an agreed 6% floating 'band' either side) was announced the following day. An interest rate cut of 1% (from 15%) was also announced on the same day. The rest of Major's Chancellorship prior to the leadership contest was largely uneventful; he considered granting the Bank of England operational independence over monetary policy, with the ability to set interest rates, but decided against it. He also agreed a restructuring and write-off of some
Third World debt at a Commonwealth Finance Ministers meeting in
Trinidad and Tobago in September 1990.
Conservative Party leadership contest Opposition within the Conservative Party to Margaret Thatcher had been brewing for some time, focusing on what was seen as her brusque, imperious style and the
poll tax, which was facing serious opposition across the country. In December 1989, she had survived a
leadership bid by
Anthony Meyer; though she won easily, 60 MPs had not voted for her, and it was rumoured that many more had had to be strong-armed into supporting her. By early 1990, it was clear that bills for many under the new poll tax regime would be higher than anticipated, and opposition to the Tax grew, with a non-payment campaign gaining much support and an anti-poll tax demonstration in
Trafalgar Square in March ending in
rioting. The Conservatives lost the
1990 Mid Staffordshire by-election to Labour and the
1990 Eastbourne by-election to the
Liberal Democrats, both Conservative seats, causing many Conservative MPs to worry about their prospects at the upcoming general election, due in 1991 or 1992. Thatcher's staunch anti-European stance also alienated pro-Europe Conservatives. On 1 November, the pro-European deputy prime minister
Geoffrey Howe resigned, issuing a fiercely critical broadside against Thatcher in the House of Commons on 13 November. The day after Howe's speech
Michael Heseltine, Thatcher's former
Secretary of State for Defence who had acrimoniously resigned in 1986 over the
Westland affair, challenged Thatcher for the leadership of the Conservative Party. Both John Major and Foreign Secretary
Douglas Hurd supported Thatcher in the first round. Major was at home in Huntingdon recovering from a pre-arranged wisdom tooth operation during the first leadership ballot, which Thatcher won but not by the required threshold, necessitating a second round. Following discussions with her cabinet, in which many stated that though supporting her they doubted she could win, Thatcher withdrew from the contest and announced that she would resign as prime minister once a new leader had been elected. Major subsequently announced on 22 November that he would stand in the second ballot, with Thatcher's backing. Major's platform was one of moderation on Europe, a review of the poll tax, and the desire to build a "classless society". Unlike in the first ballot, a candidate only required a simple majority of Conservative MPs to win, in this case 187 of 372 MPs. The ballot was held on the afternoon of 27 November; although Major obtained 185 votes, 2 votes short of an overall majority, he polled far enough ahead of both Hurd and Heseltine to secure their immediate withdrawal. With no remaining challengers, Major was formally named Leader of the Conservative Party that evening and was duly appointed prime minister the following day. At 47, he was the youngest prime minister since
Lord Rosebery some 95 years earlier. == Prime Minister (1990–1997) ==