Britain’s businesses — large and small — are readying for the upcoming coronation celebrations. While we expect a boost to trade around this time, could the economy actually suffer due to the holiday?
This does not constitute advice and advice should be sought in all instances before acting on it.
This highly-anticipated historic event might be just what the country needs to inject some life into the UK economy amidst the cost of living crisis, exacerbated by recent strikes. And since national events usually boost retail sales, experts are predicting that the coronation will create an even larger boost than normal.
Pointing to last year and the late Queen Elizabeth’s Platinum Jubilee, grocery sales were £87 million higher compared to an average week in 2022 according to Kantar data. And just like with the Jubilee, the UK retailers are seeking to capitalise on the momentous occasion with an array of commemorative items. Everything from biscuit tins and tote bags to luxury items like jewellery and cufflinks are available to mark the Coronation.
Hospitality will also benefit from the event, which is sorely needed after the industry barely recovered from COVID and has taken a hit again due to rising food and energy costs. Industry body UKHospitality reports that a third of hospitality businesses say they are at risk of failure. They hope that the coronation can help bring the people together in celebration and support local pubs, bars, and restaurants as a result. Many establishments have decided on hosting special events, offering limited editions of their goods, and extending their trading hours all weekend long in the lead up to the coronation.
The extra tourism and spending over the three day weekend is estimated to bring in an extra £337 million, according to The Centre for Economics and Business Research. But the tourism body, VisitEngland, estimates that increased domestic travel could actually bring in nearer to £1.2 billion.
However, the gilded affair is being put on at the expense of the taxpayers and has been subject to criticism for how lavish and luxurious the event will be whilst the country is in the midst of a cost of living crisis. The official and final figures will be released, but if the Jubilee is anything to go by, do momentous occasions such as these, despite being a huge attraction and money-maker for the nation, really benefit us?
The loss of output from yet another public holiday might outweigh the benefits, but the ultimate effect on the economy is yet to be seen.