Former economic journalist and diplomat Peter Jay has died at the age of 87, his family has announced.

Tributes have been paid to him by colleagues in both the political and media world following the news of his death.

His family said he died “peacefully at home” on Sunday.

“He was a much loved husband, father, grandfather, brother, uncle, cousin, friend and colleague,” they added in a statement.

Jay had been one of the country’s foremost economics commentators, with time spent as the economics editor for both the BBC and The Times.

He was controversially appointed as the UK’s ambassador to Washington in 1977 by his then father-in-law James Callaghan, who was prime minister, amid Tory protests of “nepotism”.

Lord Owen, who was foreign secretary at the time, said in tribute: “Jim Callaghan did not get on well with the sitting ambassador in Washington so it was obvious there should be a change.

“I was free to appoint someone better suited to the new Carter administration and particularly (Zbigniew) Bzezinski, his national security adviser.

“I chose on merit Peter Jay and never had any cause to regret it, though I warned the prime minister the charge of nepotism would arise.

“Before long he was playing tennis regularly with Bzezinski, getting on well with the young Georgians close to the president and in every respect proved to be an excellent ambassador.”

Mr Carter was from Georgia and had been governor of the state before his presidency.

Peter Jay with Margaret Callaghan on their wedding day
Jay married Margaret Callaghan in 1961 (PA)

Current economics editor at the BBC, Faisal Islam, paid tribute to his predecessor in a post on social media, saying he was “sad” to say Jay had passed away.

The journalist posted on X, formerly Twitter: “Famously told colleague one of his complex pieces was written for an audience of 3, & he wasn’t one of them… in room with LBJ and Okun when they came up with the definition of recession. Criticised the “bias against understanding”.

“Diplomat. Broadcaster. RIP”.

Jay was born in February 1937 and was the son of Baron Jay who as Douglas Jay was president of the Board of Trade under Harold Wilson.

In 1961, he married Margaret Callaghan in a ceremony at the Crypt Chapel of the House of Commons.

The couple stayed in Washington between 1977 and 1979.

They had a son and two daughters together and separated in 1986.