The Jubilee is good for Britain — and that means business too

We are just days away from the pomp and fanfare of The Queen’s Platinum Jubilee weekend. After two years of Covid-induced social isolation and distancing, the public is long overdue a big celebration. The Queen has reigned for an astonishing 70 years, a landmark never previously reached by a British monarch, and the country will rightly wish to mark the occasion in style.

The 19th-century essayist Walter Bagehot once wrote: “A royal family sweetens politics by the seasonable addition of nice and pretty events.” But what does the Jubilee mean for economics and business?

The overall context is challenging, with the economy, after last year’s rapid recovery, now languishing. The Bank of England recently warned of a recession expected this year or next, and inflation, now 9%, could reach double figures. If an economy is built on what Keynes called animal spirits, the upbeat occasion of a Jubilee should increase consumer confidence. That is why many well-known brands have been keen to associate themselves with the Platinum Jubilee by sponsoring the spectacles set to take place. Burberry, M&S, McDonald’s, and other large corporates have recognised the benefit of association with the Royal magic.

Granted, there is an economic cost of an extra Bank Holiday — the one in 2012 was estimated to have cost between £1.2bn and £3.6bn — but this is offset by many benefits. The Jubilee should provide a boost for retail, as shops offer new lines of products and people are influenced by the feel-good factor, keen to latch on to a celebration after the disruption and turmoil caused by Covid since early 2020. The hospitality and tourism sectors, which have taken a battering, will also hope for a large influx of tourists, as has been the case with previous Jubilees. The Government is attempting to boost travel through its no testing policy for fully vaccinated visitors and the introduction of a £10 million VisitBritain campaign to encourage international tourism.

Previous jubilees have also seen the UK in the midst of economic malaise. The Silver Jubilee in 1977 came at a difficult time for the UK: it was the year that the Government was forced to borrow $3.9 billion from the IMF. The Diamond Jubilee in 2012 followed some years of economic austerity following the financial crisis. Encouragingly, however, the growth rate in 2012 of 1.43% showed an increase on the previous year. We would certainly welcome a similar economic boost this time around.

The seven decades of the Queen’s reign have seen seismic market changes. The first supermarket in the UK opened the year before her reign began in 1952, with the thought of online retail – and indeed, the advent of the internet – a long way off. Similarly, the financial services sector had yet to enjoy the explosive growth which came much later and turned it into one of the UK’s most persistently successful sectors.

The Queen’s longevity is highlighted by the fact that 14 Prime Ministers, 22 Chancellors and 9 Bank of England Governors have served during her reign. She has seen economic ups and downs, not least the financial crisis starting in 2008, which famously prompted her, on a visit to the London School of Economics, to ask the question: “Why did nobody notice it?” Many companies founded in the year of her accession, such as Austin-Healey and Bowers Coaches, are no longer around (though the likes of Lotus and Russell Hobbs, which turn 70 this year, are still going strong). Sir Winston Churchill had then recently returned to office as PM and Britain was still recovering from the effects of the Second World War, with rationing still in place on tea, sugar, butter, cooking fat, and sweets.

One of the biggest changes over 70 years has seen the growth of tech companies, prompted by the invention of computers, the birth of the internet, and the digital revolution. Amazon (1994), Google (1998), and Meta (2004) are relatively speaking mere fledglings of the Elizabethan era, having been around for much less than half of the period.

The Royal Family is sometimes referred to as ‘the Firm’” and the Queen has done her bit for business. The Queen’s Awards for Enterprise, started in 1966, recognise excellence in certain categories, there are over 800 Royal Warrant Holders, and the Queen has met with businesses all over the UK (and overseas), as part of her visits for over 70 years. As business has become more digital, diverse, and green over the course of her reign, it’s likely that celebrations will also reflect these megatrends.

The Queen has been an anchor for the British economy and people, overseeing both through innumerable crises. We all hope that the Platinum Jubilee, a unique moment in the history of the nation, can contribute in some way to our nation’s economic recovery.

Zaki Cooper and Nick Loughran are co-founders of Integra Group and worked at Buckingham Palace on the Diamond Jubilee

A Message from TheArticle

We are the only publication that’s committed to covering every angle. We have an important contribution to make, one that’s needed now more than ever, and we need your help to continue publishing throughout the pandemic. So please, make a donation.