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The British Conservative politician Norman Tebbit, who served in Margaret Thatcher’s Cabinet from 1981 to 1987, has died aged 94. Gruesomely, his life is best remembered for a near-death experience. He was pulled from the debris of Brighton’s Grand Hotel in 1984 after an IRA bomb tore through a wing of the building. His wife, Margaret, was paralysed from the neck down as a result of the attack.

Never one to shy away from voicing divisive opinions, Tebbit forged a reputation as a gritty right-winger and was known to his critics, somewhat unflatteringly, as "the Chingford skinhead" (he was also once described as "the great political street-fighter of his generation"). He was made UK employment secretary in 1981 at a time when more than 2.5 million people were jobless, with claims that 6,000 were joining the dole queue daily. Trade unions organised marches to call attention to the issue and, in reference to some of those rallies turning ugly, Tebbit countered with the famous quote about his grandfather: “He didn’t riot. He got on his bike and looked for work."

He incurred more flak with his proposed "cricket test", a scheme to determine how well an immigrant or their descendants had been assimilated on account of which national cricket team they supported – whether it was England or their “heritage team” – which could then serve as a barometer of Britishness. Tebbit expanded on the idea, saying: “A large proportion of Britain's Asian population fail to pass the cricket test. Which side do they cheer for? It's an interesting test. Are you still harking back to where you came from or where you are?" The much-ridiculed cricket test never got off the ground.

Only months after the Brexit referendum in 2016, Tebbit wrote in the Daily Telegraph that UK law was facing challenges from a “rival legal system with its own courts, such as that now represented by the network of Sharia”, and that “Islam challenges our way of life in our own country”. It was difficult to grasp precisely what he was referring to, as the unofficial Sharia councils in Britain had no legal power. But Tebbit was peddling a myth widely held within Conservative circles, to the extent that the prime minister at the time, Theresa May, set up an inquiry into Sharia in Britain.

Tebbit's hopeless misunderstanding of Islam became apparent through several crass public comments. Not content with describing the veil as a means of shying away from the rest of the community and "thoroughly rejecting our culture", he also claimed the religion had been "so unreformed since it was created that nowhere in the Muslim world has there been any real advance in science, or art or literature, or technology in the last 500 years".

Norman Beresford Tebbit was born on March 29, 1931, in Enfield, north London. His working-class childhood was suffused with a strong academic performance, earning him a place at Edmonton Grammar School. Tebbit was a pilot in the military and the commercial sector, and was also a trade union official. But it was in politics that he was to make his name. In 1970, he was elected to represent Epping then, four years later, Chingford, the Essex seat he would hold for more than 20 years.

I am one of those who have it on my conscience that I allowed Mr Blair to become Prime Minister

Despite, or perhaps because of, his grounding, Tebbit, with Thatcher’s guidance, sought with the 1982 Trade Union Act to further diminish union power. In days when strikes were rife, the legislation made unions liable for damages stemming from what was deemed illegal protest action. The role of trade and industry secretary beckoned for Tebbit, and subsidies to already struggling industries were cut.

Tebbit was nearly killed by the IRA bomb, an attack on numerous Conservative members staying in The Grand Hotel on the Brighton seafront for the 1984 party conference. The horror of his brush with death was captured by photographers and the appalling image of Tebbit in his pyjamas being carried from the scene on a stretcher is an enduring one.

He recovered well, however, becoming Conservative Party chairman and chancellor of the Duchy of Lancaster. But reports circulated that relations with Thatcher, to whom he had been very close, had started to fray, not least because he was identified in some quarters as her potential successor as prime minister. These suspicions were scotched, though. Having helped to orchestrate another general election victory in 1987, Tebbit quit the government on a promise to his wife that he would earn enough money from businesses outside the political sphere to help pay for her care, a pledge he duly honoured.

Tebbit is pulled from the rubble of The Grand Hotel in Brighton after an IRA bombing in 1984. Reuters
Tebbit is pulled from the rubble of The Grand Hotel in Brighton after an IRA bombing in 1984. Reuters

The Thatcher-Tebbit fulcrum became evident once more when she offered him the post of education secretary, which he rejected. Still, in 1990, Tebbit showed undaunted support for his prime minister as she faced a leadership challenge, which he refrained from joining, although he later apparently aligned himself with her successor, John Major.

Tebbit left the House of Commons for the Lords in 1992, where he was guided by the hidden hand of Thatcher once more, the pair this time reunited in their objection to the Maastricht Treaty that established the EU, the ratification of which they saw as “treason”. Beginning to voice more and more scepticism of Major, Tebbit hinted he had not pursued the party leadership because he mistakenly believed Major espoused right-wing values – he once said Major had "the mulishness of a weak man with stupidity". The party sank gradually and Tony Blair’s "New" Labour took office in 1997. Tebbit’s own decision-making subsequently appeared to rankle, as he later explained: "When I look at what happened to the party, I tell myself that perhaps I failed in a duty. I suppose I am one of those who have it on my conscience that I allowed Mr Blair to become prime minister."

In the House of Lords, Tebbit, who was made a life peer, remained an entrenched supporter of Thatcherism and disavowed some of the centrist policies of the party with David Cameron at the helm. Tebbit’s politics can be rather well summed up by his assertion: “It is certainly safe, in view of the movement to the right of intellectuals and political thinkers, to pronounce the brain death of socialism.” He retired from the Lords in March 2022.

He spent much of his time caring for his wife who, as a wheelchair user, was a vigorous campaigner for access for disabled people. He condensed their highs and lows into an entertaining memoir Upwardly Mobile, in which he expressed deep admiration for his wife and the fortitude she had shown following the Brighton blast, after which she spent two years in hospital. A tiresome theme of Tebbit’s book, however, was his bleating about the penury that marred his working life. Tebbit could hardly be said to have been short of money, yet by his own measure apparently he was. He went on to write several more books, with varied success. Margaret Tebbit died in December 2020. The couple had three children, William, John and Alison, all of whom survive their parents.

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

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Analysis

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Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: July 10, 2025, 6:45 AM