King Charles’s coronation did not stimulate the British economy after all

In the lead-up to King Charles’s coronation, there was a lot of debate about whether the Chubbly should have been done as a smaller, cheaper affair. There were also debates about what the coronation would really cost the British taxpayer, especially with the expanded security costs for all of the visiting dignitaries. Plus, the coronation was a “bank holiday” in the UK, and Buckingham Palace and Downing Street swore up and down that the coronation would stimulate the local economy, especially in London, as people would naturally flock to see their septuagenarian king. Well, guess what? The British economy did not see a coronation boom. In fact, it saw a small retraction:

Britain’s economy shrank by 0.1% in May after a hit to activity from a trio of bank holidays, including for King Charles’s coronation.

The Office for National Statistics said that gross domestic product (GDP) fell on the month, after growth of 0.2% in April, as manufacturing, energy generation and construction all dropped as some industries were affected by one fewer working day than normal. City economists had forecast a bigger fall of 0.3%.

While coronation festivities helped to provide a boost for some businesses, the UK’s pubs, bars, and restaurants suffered a fall in consumer spending after a strong April, while employment agencies also struggled amid a slowdown in hiring demand. The arts, entertainment and recreation sectors benefited from the extra bank holiday, the ONS said.

The figures come as the Bank of England prepares to raise interest rates for a 14th consecutive time amid growing concern over high inflation, adding to pressure on households and businesses in a development expected to weigh on economic growth in the months ahead.

[From The Guardian]

Well… there you go. Keep in mind, Charles himself supposedly rejected the idea of a budget coronation, although I think the government decided to do the expanded bank holiday. So much for “the coronation will stimulate the economy.” As I said at the time, it was especially bizarre because the king also asked the British people to commit to a day of service during the long weekend, meaning… unpaid labor. Many of the coronation workers were “volunteers” as well – more unpaid labor. The coronation could have stimulated the local economy but Charles didn’t want to pay anyone for their work, so there you go.

Photos courtesy of Avalon Red, Cover Images.