As a boy, his first interest in politics was stoked when he collected autographs from politicians visiting the local area:[2] he still possesses one from Tam Dalyell, with whom he later served in the House of Commons.

Following school, he was accepted by Downing College, Cambridge, where he obtained a joint BA degree in economics and law.

From there he returned to Scotland to study law at the University of Edinburgh, graduating with an LLB degree in 1977.

He also stood, unsuccessfully, as the Liberal candidate in the South of Scotland constituency at the European Parliament elections of that year.

This meant he served as a Member of both the Scottish and Westminster Parliaments for a time with a dual mandate, although like other MPs elected to Holyrood (such as John Swinney, John Home Robertson and Donald Gorrie) he stood down from Westminster at the 2001 General Election.

British politicians were unaccustomed to coalition politics, and the Liberal Democrats came under fire from Conservative and SNP opponents who claimed they had 'sold out' their principles.

In the event, the Liberal Democrats did insist on the abolition of tuition fees after the inquiry reported in 2001, but in 1999, the delay was perceived to have been a compromise, and Wallace in particular became the focal point for extremely bitter criticism.

The 2003 coalition negotiation process was widely seen as a more successful enterprise by the Liberal Democrats than the preceding one, with key aspects of Labour's proposals on anti-social behaviour dropped or limited, and with the promise of proportional representation for Scotland's 32 local councils.

[5] On 9 May 2005, following the 2005 General Election, Wallace announced his intention to stand down as party leader and Deputy First Minister.

[7] Wallace also received an Honorary Doctorate from Heriot-Watt University in 2007 [8] On 28 April 2008, it was announced that the new Lord Wallace would be a member of the Commission on Scottish Devolution, chaired by Sir Kenneth Calman, established by the Scottish Parliament to consider the future powers of the Parliament, including powers over finance.

[14][15][16] It is highly unusual for a lay person to be nominated as Moderator, predecessors being Alison Elliot in 2004 and George Buchanan in 1567.

Wallace is an elder of the Church of Scotland, attending St Magnus Cathedral in Kirkwall, Orkney.