Nigel Lawson was Margaret Thatcher's longest-serving Chancellor of the Exchequer, but their relationship soured in the late 1980s. Lawson's resignation in October 1989 was a major blow to Thatcher, and it is widely seen as one of the factors that contributed to her downfall a year later.
There were a number of reasons for the breakdown in the relationship between Lawson and Thatcher. One was their disagreement over economic policy. Lawson was a monetarist, who believed that the government should control the money supply in order to control inflation. Thatcher, on the other hand, was more pragmatic, and she was willing to use other tools, such as interest rates, to control the economy.
Another reason for the rift was Lawson's relationship with Thatcher's economic advisor, Sir Alan Walters. Walters was a close friend of Lawson's, and he often gave him advice that was contrary to Thatcher's own views. Lawson's reliance on Walters angered Thatcher, and it led to a growing sense of distrust between them.
The final straw came in June 1989, when Lawson resigned over Thatcher's decision to join the Exchange Rate Mechanism (ERM). The ERM was a system of fixed exchange rates between European currencies, and Lawson believed that it was a mistake for Britain to join. He resigned in protest, and his departure was a major blow to Thatcher's government.
Lawson's resignation was one of a number of factors that contributed to Thatcher's downfall in 1990. Her decision to join the ERM had been unpopular with many in her party, and her handling of the poll tax had also angered voters. In November 1990, Thatcher was challenged for the leadership of the Conservative Party by Michael Heseltine. Thatcher won the first round of voting, but she failed to win enough votes to secure an outright victory. She was forced to stand down, and Heseltine became the new leader of the Conservative Party.
Lawson's resignation was a major turning point in Thatcher's career. It was a sign that her authority was waning, and it contributed to her downfall a year later.
