As the country anticipates the coronation of King Charles III on Saturday 6 May, there’s significant talk of whether the ceremonial spectacle will boost the economy or have a negative effect.
In this guide, we’ll be taking a look at how the celebrations and extended weekend will impact Britain’s economy.
How Much Will the Coronation Cost?
Amid the cost of living crisis and strike action by nurses, teachers and other public servants over pay, some taxpayers are less than pleased to foot the bill of the King’s Coronation. But exactly how much are the celebrations going to cost, and how much will this cost individual taxpayers during this time of financial hardship?
With no budget announced for the coronation and no comments from the Government on the expected cost, the exact amount of public funds due to be spent remains unknown. However, predictions from experts estimate that the coronation will cost the nation anywhere between £50m to £100m.
However, King Charles has apparently stated that he wishes to make the publicly-funded ceremony a marker of his mission to create a more financially viable royal family and that attempts would be made to scale down the event.
Buckingham Palace has announced the timetable for the scaled-down events, which it says will reflect the “different times” we live in, compared to Queen Elizabeth II’s Coronation in 1953.
Alaistair Bruce, former officer of arms of the Royal Household, said the ceremony will still “have its reflections’ of the 1953 Coronation, but it will be scaled down and modernised.
In addition, according to a report by the Centre for Economics and Business Research, each UK bank holiday costs the country around £2.3 billion.
How Much Will the Coronation Generate for the UK Economy?
The King’s Coronation is expected to bring in around £8 billion for the UK economy.
On a typical May bank holiday, the British public spends £4.80bn, however, this weekend, it’s estimated that they will be spending £3.22bn more.
Supermarkets & Shops
Roughly 15.8 million say they will watch the coronation on television, while 15.7 million will attend a street party or social gathering. As a result, it’s expected that consumers will spend an additional £1.76bn in shops, which is equivalent to £87 per person, as they prepare street parties and celebrations.
A significant chunk of this (£1.17bn) will be spent in supermarkets, convenience stores and corner shops as the public stock up their kitchens. Spending on coronation decorations, souvenirs and memorabilia is also set to boost the economy.
Britain’s tourism sector is set to see an increase of £0.25bn as 2.3 million people flock to the capital, with 125,000 visitors travelling from abroad to see the coronation procession.
Hospitality will also see a huge raise of £120 million, as the public are expected to purchase 35.5 million pints of beer, 5.3 million bottles of wine, 2.4 million bottles of fizz and 200,000 bottles of Pimms across UK venues over the three-day weekend.
This is also helped by the fact many venues are allowed to stay open until 1am between 5-7 May, two hours later than usual.
For more of the latest financial news and updates, check out the rest of our handy guides.