Death rates

The official figures for death rates in the UK show that the death rate in 2020 was considerably higher than in recent years. They also show, contrary to some media reports, that the death rate stayed below the higher levels it reached in the years 1999-2004. The overall rate is around 1% per annum, with most of those dying being the elderly. As people are living longer, so the typical age of death has trended upwards over the last half century.

There was a surge of deaths in the spring of 2020 brought on by CV 19 which boosted overall annual numbers. Since then progress with finding a range of treatments and nursing procedures that can cut the death rate from the virus have helped to bring down the numbers dying from the pandemic.

Today there is concern that other causes of death including cancer and heart problems may be boosted by people not seeking the treatment they need with these conditions, or by delays in access to hospital care resulting from the need to create extra capacity in some hospitals to handle covid 19 patents. There is also the double hit to overall NHS capacity that has come from the measures to tackle the virus. There is more social distancing in hospitals to wrestle with infection control, and absences of more staff who either catch the virus or need to self isolate for periods after contact with it.

The NHS management and their Ministerial supporters are concentrating on rolling out the vaccine, with the hope that this will solve the problem of lockdown. It may require more development of vaccines and further vaccination moves should the virus transmute. This important work should not detract from the need to advance in other ways as well. So let us look at other ways we can learn to live with this virus.

  1. More medical guidance on ways the rest of us can fend off the virus, using everything from diet to exercise. What is the official view of zinc, Vitamin C, weight loss and other measures in addition to Vitamin D which now has some official support?
  2. Are there treatments like Regeneron and chloroquine that can offer some protection?
  3. More treatments that can cut the death rate and reduce the severity of viral attacks. The work that has discovered dexamethasone and the anti rheumatoid drugs is welcome. Where are we on Ivermectin and others?
  4. More guidance and support for people to convert air flow and heating systems and introduce air cleansing systems within their air systems, to reduce exposure to disease laden air in enclosed rooms and spaces
  5. More use of isolation hospitals to cut the spread of disease in health settings and to reduce the numbers of NHS staff at risk



We need an unlock plan

Now the vaccines are being rolled out at some speed surely we are owed a proposed timetable to remove restrictions? The experts have always wanted long lock downs and have always seemed to rely on mass vaccination as their answer. It has been hard work getting them to take adaptation and safety measures seriously as a way of re opening more businesses, and even difficult to get results from tests and trials of various treatments to cut the death rate and the severity of the bad cases.

This week has been about securing sufficient deliveries of vaccine and sorting out arrangements to get the inoculations done. There have been debates about the relative role of GPs, pharmacies, hospitals and large temporary centres. The system seems to favour large facilities capable of carrying out many procedures, and favours NHS leadership. Let’s hope it goes well.

Meanwhile damage is being done to many small businesses and the economy has declined again. the Chancellor resists all requests to give more temporary help to businesses .

I am pressing for more measures to support the economy and a clearer path back to work.




Government borrowing

A contributor asked for an update on government debt.

The UK had a difficult borrowing problem in the IMF crash of the mid 1970s when the country ran out of foreign currency to borrow and had to make emergency cuts. The IMF supervised a programme of lower public spending in return for loans.

It had a bit of a domestic borrowing problem in the 1980s as a Conservative government tackled the large inherited borrowings. Interest rates rose to high levels to persuade people to take state debt as investments. As spending came under better control so rates came down, helping economic recovery.

It had a worse borrowing problem during and after the banking crash of 2008. State debt was high going into the crash alongside very high levels of private sector borrowing. Both sectors reined in in the last months of the Labour government. The incoming Coalition, contrary to media reports, raised the levels of state borrowing over their tenure.

On each of these occasions debt interest was over 3% of GDP or 6-7% of total public spending. It was considerably higher immediately after the war when state debt was 250% of GDP reflecting the need to spend and borrow to win the war. Patient work brought the debt under better control in the 1950s.

People ask me if we can afford the sharp build up in gross debt brought on by the policies chosen to deal with the pandemic. I am pleased to report that we can afford it, because interest rates have tumbled so much and because the Bank of England is buying in substantial quantities of the debt. The latest official predictions show net debt interest as a percentage of GDP falling to a tiny 0.8% of GDP next year as debts are rolled over at low rates and as the Bank completes its buying programme. This means debt interest will be at its lowest for the post 1945 period. There is no need to count the interest paid on the debt owned by the Bank of England, as taxpayers and government get that receipt.

The Uk government today can borrow money for 10 years at 0.29%. The stated debt is a large 105% of GDP, but the state itself will own £875bn of that so the true figure for the actual net debt owed by the state is around two thirds of GDP.

These are unusual times when the US, UK, leading EU countries and Japan can all borrow at around zero very large sums of money. It is still not a good idea to go on borrowing at scale for too long, and never a good idea to waste money borrowed. The immediate need for high borrowing is necessary to subsidise people and companies that are prevented from working by lock downs. The sooner we can unlock, the sooner we can get our finances under better control.

The good news is there is no need to worry yet. Markets are allowing all the major countries to borrow plenty at ultra low rates of interest, underpinned by Central Banks buying up a lot of the debt. This only has to change were inflation to pick up, which so far it has not. Japan has been doing this now for several decades with no inflation, with gross state debt at 250% of GDP but net state debt around half that and the interest burden very low.




My question during the Urgent Question on Northern Ireland Protocol: Disruption to Trade, 13 January 2020

Sir John Redwood (Wokingham) (Con): Will my right hon. Friend introduce urgent legislation to ensure the smooth flow of goods between Northern Ireland and GB? Is it not crucial to our Union, in respect of both Northern Ireland and Scotland, that the Government keep their promise to take control of our laws and borders and to demonstrate a more prosperous internal market for the whole UK?

The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Mr Michael Gove): My right hon. Friend is absolutely right. We want, first of all, to make sure that we are doing everything technically and administratively in order to ensure the smooth flow of goods but, as the Prime Minister confirmed to the House earlier, if we need to take further legal steps, then of course we will.




Sort out the Northern Ireland border

Yesterday I asked the government to legislate to ensure smooth passage of goods between GB and Northern Ireland. The government promised us we were taking back control of our laws and borders. They assured us their deal with the EU allowed the U.K. single market to work properly for the whole UK.

Not trusting the EU I objected at the time. I was very concerned about continuing EU influence over Northern Ireland and over our fishing, and it now seems I was right to warn. EU interference and requirements are impeding the flow of goods from London to Belfast where they go smoothly from London to any English city.

The government says it can use a clause in the Irish protocol to take over and control our single market in Northern Ireland. It should do so. It could also legislate, as they say we are now a sovereign country. I supported them when they sought to do so before signing the Agreement, only to see them cancel that legislation a day later when the EU offered a deal. Clearly the deal was not as good as the legislation. So bring on legislation.

We meant it when we voted to take back control. That has to include Northern Ireland trade and our fishing grounds. There are plenty of countries and businesses around the world who want to sell us things. Our borders with the rest of the world in Great Britain work just fine. We can also supply more of our own needs. Let’s get on with it. We cannot allow the EU to stop us trading with ourselves!