 The son of Frank and Kathleen Newby, he was educated at the Rothwell Grammar School in the village of Lofthouse in West Yorkshire, followed by St Catherine's College at the University of Oxford, where he received a Bachelor of Arts degree in philosophy, politics and economics in 1974 and was later awarded a Master of Arts degree.On leaving university, Newby joined HM Customs and Excise where he became principal in charge of budget coordination in 1980.After the SDP he became director of corporate affairs at Rosehaugh plc, at one time a major property developer.