Jonathan Van-Tam framed it as a race between the new variant and vaccine rollout. But perhaps we should think of it as 404 different races - one for each local authority in the UK.
We know that some areas have been hit much harder by past waves of Covid than others. But the silver lining is that population protection in those areas is higher now so any third wave *should* be smaller in areas of high past infection
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Vaccine take-up also varies by area due to demographics, but also due to vaccine hesitancy and other things. So there's a fair amount of variation in vaccine protection across the country
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Putting those together - and stripping out any overlap for people both infected in the past and now vaccinated - and the picture looks like this
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London is fascinating. The outer boroughs are well protected by both high past infection and high vaccine uptake. But some of the inner boroughs appear quite exposed.
North Kent - first and hardest hit by the Kent variant - has strong protection from past infection
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North West was hit pretty hard in the past, and vaccination coverage is mixed.
Worryingly Bolton appears to be among the better protected areas of the country, yet it's still seeing a surge of B.1.617.2. That doesn't bode well for the many more exposed areas of the country
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How is protection likely to evolve from here onwards as the vaccine rollout continues? Here we've lined up all English local authorities from the least to the best protected - almost all of them make it over the herd immunity threshold for Step 3, take on Monday...
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Can they get to the higher herd immunity threshold (for the Kent variant) by the time of Step 4?
No, hence SAGE foresees R>1 for a time after June 21 (though this all assumes no material change in protection from past infection over the period)
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Protection continues to rise and by the end of the summer many areas are over the line, and further infections will probably push most above the HIT - but there's likely to be an under-protected tail of areas throughout
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Things get more worrying if the B.1.617.2 becomes dominant (as seems inevitable). Here we look at how the HIT changes if it turns out to be 25% more infectious.
By the end of September, absent further infections, nowhere gets above the line.
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There are only estimates, but any gap between protection levels and the HIT will be made up either by extending vaccination to adolescents or by a third wave.
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Overall, accelerating vaccine rollout or postponing Step 4 until rollout is complete would save lives
But so would varying the distribution of vaccines by area. Marginal benefit of an extra vaccine in a highly protected area is less than in an exposed on (all else equal)
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If we can be smarter with vaccine rollout, it could make a big difference. It's time to explore what levelling up vaccinations could do for us institute.global/policy/levelli…
The £28bn row crystallises a big economic policy dilemma facing the UK
Debate around how to fire up growth seems unable to reconcile two mutually inconvenient truths. But a meaningful growth plan depends on doing so 🧵
Inconvenient truth #1.
We have a large national debt and it's risky to allow it only to flatline between crises and ratchet ever upwards
For all the fiscal rule haters, fiscal sustainability is a real thing. We can't just wish it away
Related to that, the current set of fiscal rules - especially the supplementary target of borrowing <3% GDP - is the most lax we've had since fiscal rules became a thing in 1997
There's been some hyperbole about today's +670k immigration and housing costs. But DONT PANIC! Here's why:
1st look at the past 24 years. Generally population has grown slower than housing stock. Houses per person are +2.7% over 2000-22
Today's immigration numbers were well above the ones in the ONS population projections, so that's caused pop per dwelling to rise in 2022-23 (blue line), but not by much.
And experts see these numbers dropping back to previous projections (method/sources at the end)
That would take the change in population per dwelling since 2000 from -2.7% to about -2.5%.
What would that do to rents? Well there's an interesting recent paper from the New Zealand Government that looks at this treasury.govt.nz/sites/default/…
After the election there's going to be a fiscal hole to fill. How big though?
A *very* fag-packet calculation suggests whoever wins needs £30-40bn just to keep the show on the road - unless something turns up
Some thinking aloud...🧵
1st some assumptions. In March HMT had just a £6.5bn margin against its debt falling target
For simplicity, assume no change to that in 2028-9. Assume too that the next gov keeps the 5-yr debt rule. Also assume nothing changes in the underlying forecast or debt service costs
This week's @TheIFS green budget has an excellent run down of some of the tax/spending risks. Some things not yet accounted for:
- £6bn to keep fuel duty frozen
- ~£6bn for full expensing (assumes half way between the £10bn up-front cost and £2bn long-term cost - here's the IFS)
High and converging levels of concern about the problem across social classes, age groups and urban/rural.
Not obvious what anti-climate electoral strategy works from that
Then there’s the values divide. Brexit was a deep divide between socially conservative and socially liberal people that cut across economic left/right. Climate isn’t that stark.
Good to speak @CommonsTreasury about wealth and intergen inequality today with David Willetts and Resham Kotecha of @SMCommission. An edited 🧵of my comments
First up is the likely impact of last year's events on aggregate UK household wealth: it will be big
My paper for the LSE wealth tax commission on the drivers of the huge surge in wealth of the past 25 years gives some pointers as to what we can expect
Haldane's proposal of dumping government debt rules and letting borrowing be constrained only by public sector net worth surely right in principle.
But is it viable in practice? Are there simpler ways to get to a similar destination?
Four drivers of changes in assets/liabilities are worth thinking about: 1. Natural assets 2. Countercyclical fiscal policy 3. Land 4. Fixed assets like transport, energy, health infrastructure
1. Haldane's suggestion of taking natural assets into account highlights the question of how broad you take the definition of assets.
Including natural assets like the biosphere is much broader than the conventional definition of PSNW.