The Canadian government is pushing hard for cities to build more "fourplex" apartment blocks.
Graham Watson's insight:
This could go on a number of boards but I've put it here because the UK seems to be in a similar situation as regards housing, and this Canadian solution is interesting.
In short, the Canadian government have sought to intervene to encourage the building of smaller houses of multiple occupancy instead of larger homes and apartments. Would it work here?
I don't have an answer but it seems to be a way of getting people on the housing ladder.
The government is poised to help the struggling steelmaker secure thousands of jobs.
Graham Watson's insight:
The decision to grant British Steel another £300 million in rescue funding demonstrates the dangers of subsidising failing businesses. Having already intervened, if the government withdraw funding, they will be held responsible for the collapse of the firm and the job losses.
And yet for all the reassurances being offered from the parent company, Jingye, if the business isn't viable in the long-term, then this represents another significant opportunity cost to what end? In cases such as these, where the government is trying to prevent structural unemployment, does such intervention help or hinder? If the government doesn't intervene and the firm goes under, then workers will have to reskill, or move, in search of jobs, which it looks like they are going to have to do at some point anyway.
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The government has further reduced the amount of subsidy for buying electric cars, this time from £2,500 to £1,500.
Graham Watson's insight:
The government has announced that it's going to reduced the subsidy for electric cars from £2,500 to £1,500, arguing that sales of EVs have increased, such that the subsidy is no longer necessary.
Motoring groups are opposed to the move, arguing that it will reduce the incentive for people to switch to these vehicles.
In London, Tube and bus fares are being frozen and prices reduced during rush hour and on Fridays
Graham Watson's insight:
The annual increase in regulated fares always causes upset - in this case fares in England and Wales are going up by 4.9%, more than the rate of inflation but lower than it could have been if the government hadn't intervened. However,. there's a sense in which there's regional inequality - fares in London have been frozen, and actually reduced during rush hour and on Fridays.
It's a difficult balance to strike: rail revenues are 20% lower than pre-pandemic, the public subsidy is higher than expected, and higher fares are required to fund investment. That said, it's hardly a ringing endorsement of privatisation.
Critics say telecoms firms such as BT – which made £1.9bn profit last year – can afford to keep customers on benefits connected
Graham Watson's insight:
This article looks at the fact that BT are going to approach the government to help them provide low-cost broadband to the poorest members of society. They argue that such a move would cost £2bn, although critics point out that they have an obligation to offer this, and that they make profits that are comparable to this cost.
Retail veterans say the government must do more to help independent shops survive as lockdown is eased.
Graham Watson's insight:
The retail sector has been under the hammer for the past year, and a number of retailers are calling for the government to offer a 'Shop Out to Help Out' scheme during the coronavirus recovery. The scheme would cover up to 50% of a shopper's costs up to £10, Monday to Wednesday but only in selected small stores.
It's an interesting suggestion but I'd immediately wonder about the distributional effects of this - it would go to a select group of shoppers who are able to shop on those days, and by and large, wouldn't seem to be likely to be spent on household essentials like food. And what about those who simply can't afford to buy anything other than essential items? Will there be adverse distributional effects?
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This could go on a number of boards but I've put it here because the UK seems to be in a similar situation as regards housing, and this Canadian solution is interesting.
In short, the Canadian government have sought to intervene to encourage the building of smaller houses of multiple occupancy instead of larger homes and apartments. Would it work here?
I don't have an answer but it seems to be a way of getting people on the housing ladder.