“Tosh!” Bank of England chief’s Jubilee slump fears slammed
11:53 24 May 2012
Two week days off work coupled with widespread travel disruption in London for the Diamond Jubilee celebrations will not hit the economy, it has been claimed – in contrary to fears expressed by the head of the Bank of England.
Four days of disruption and crowding on public transport is due to hit central London roads from Saturday, as the Queen’s 60th year on the throne is celebrated with a swathes of events.
Bank of England governor Sir Mervyn King has warned the Jubilee celebrations, with bank holidays on June 4 and 5, could hit economic output.
But travel chiefs hit back, insisting hopes are high of a Jubilee boom.
“The Jubilee is going to provide a much-needed boost for business and that has got to be good for the economy. I think the doom merchants are talking a lot of tosh,” said Laurence Hicks, director of holiday rentals company CLC Leisure.
“Spending on holiday accommodation, pubs, restaurants, attractions and all modes of travel will greatly increase during the first week in June,
“Even those who stay at home are likely to be spending more on food and drink be it for a street party or garden barbecue. Other businesses like garden and DIY centres will also benefit,” he said.
The banking sector is only one part of the economy, insisted Mr Hicks.
“Bankers may be taking a rest but many people in the leisure and retail will be working flat out,” he said.
Accountancy giant Price Waterhouse Cooper refuted that economic powerhouses like London risk a mini-slump caused by the Jubilee.
“It should be a good weekend for the capital with all eyes on London ahead of the Olympics,” a spokesman said.
“Restaurants, bars and cafes are likely to benefit the most from the large crowds of visitors flocking to the capital.”