He was appointed to the Order of St Michael and St George as a Companion in the 1987 Birthday Honours, was promoted to be a Knight Commander in the 1991 New Year Honours, and to be a Knight Grand Cross in the 2001 Birthday Honours. Three years later, his life peerage was announced on 1 May and was raised to the peerage as Baron Kerr of Kinlochard, of Kinlochard in Perthshire. In the House of Lords he has served on the EU Select Committee and three of its Sub-Committees, and currently is a member of its Economic Select Committee.