Ministers are looking into proposals to make next month’s jubilee bank holiday permanent from next year, amid a campaign by business leaders urging ministers to prioritise public wellbeing over the possible economic costs.
Bosses including the Dragons’ Den star Deborah Meaden and Carolyn McCall, the chief executive of ITV, said the government needed to consider the wider benefits from turning next month’s extra public holiday marking Elizabeth II’s 70-year reign into an annual fixture.
Writing to the prime minister and chancellor asking them to back plans for a new public holiday, the business leaders said the government had overestimated the economic costs and not focused enough on the potential societal boost.
The Guardian understands the government will be looking carefully at the proposals from the campaign group – which is also backed by figures and trade bodies including the Confederation of British Industry, UKHospitality, the Scouts, the archbishop of Canterbury and the Trades Union Congress – to make this year’s extra break on 3 June into a permanent “thank holiday” from 2023.
The addition of an extra bank holiday would bring the annual total in England and Wales to nine, still lower than in EU nations including Germany and France, which have 11 public holidays.
Research from the accountancy firm PwC commissioned by the group showed the government’s existing figures overestimate the potential cost of a new bank holiday by 64%, while also failing to account for positive social and health benefits that are not captured by GDP figures.
City analysts have warned next month’s platinum jubilee celebrations could trigger a drop in quarterly economic output in the three months to the end of June, increasing the risk of a summer recession as the cost of living crisis forces consumers to rein in their spending.
Official figures show extra bank holidays in previous jubilee years have led to sharp reductions in monthly GDP, as the costs from businesses closing for the day were not outweighed by the benefits from higher consumer spending when people had more time for socialising in pubs and restaurants or shopping on the high street.
The government estimates this year’s platinum jubilee celebrations will lead to the loss of £2.4bn in economic output. However, the official impact assessment suggests there could be a boost for the hospitality, tourism and retail sectors, while also recognising that there could be benefits for mental health and wellbeing.
Prior to the Covid pandemic, the largest monthly declines in GDP were at the time of the Queen’s golden jubilee in 2002, when output fell 2.2%, and 2012 diamond jubilee, when it fell by 1.5%.
Meaden said she was backing an extra bank holiday because it could help businesses in sectors of the economy that have struggled during the Covid pandemic. “[It] will provide the country with a social and economic stimulus we need after a difficult few years,” she said.
The government has been approached for comment.
