The Brief: News of the Queen’s passing has brought banks, many shops and the stock market across the country to close on the day of her demise, which will be repeated during her funeral out of respect for the royalty. Although the Queen does not have a direct influence on the economy, the temporary closures and bank holidays together with the replacement of military and police gear that bear her initials plus updates on currency, notes, stamps and passports to reflect the new King’s image will come at significant cost.
Why It Matters: With the public still reeling from the high cost of living, a lingering energy crunch and economic uncertainty, there is no doubt that the Queen’s demise has added to the country’s already lugubrious state. However, with a newly elected prime minister and a scheduled proclamation of the new King by the Accession Council tomorrow, policy reforms and positive changes are anticipated, at least for the moment before severe economic headwinds into early next year are felt.
Finanze® Foresights: As the country continues to grapple with taming energy shocks and averting a recession, the planned spending in the transition to a new monarchy will be another blow to the already bruised UK economy. With reports of the royal family costing taxpayers £102.4 million in the last year and an additional £27.3 million funding gap pay for the next two years, the country can hopefully recover its expenses partly through tourism-related revenue as the travel industry continues to recover, which will have an indirect impact to house price formation albeit minimal.
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