The estimated financial implications of King Charles’ coronation are significant, with projections suggesting a cost ranging from £50 million to £100 million ($63-125 million).
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This weekend, the world will be captivated by the coronation of King Charles III at Westminster Abbey, an event that promises a quintessentially British display of grandeur and ceremony. On Saturday, May 6, the Archbishop of Canterbury will officiate this historic occasion, marking the beginning of three days of celebrations across London and the wider U.K., culminating in a public holiday on May 8. The ceremony, the first of its kind in 70 years, follows King Charles’ official ascension to the throne on September 8, 2022, coinciding with the passing of Queen Elizabeth II. While millions are anticipated to witness this monumental event, it occurs against a backdrop of economic challenges, as the nation grapples with its most severe cost-of-living crisis in decades, raising questions about the relevance of such an expensive celebration.
Understanding the Financial Impact of the Coronation
The exact financial details surrounding the coronation ceremony have not been disclosed by Buckingham Palace, and they have not responded to inquiries from CNBC for further information. However, reports suggest that King Charles has advocated for a more modest ceremony, aiming for a shorter, less extravagant event that reflects a desire for a more representative monarchy. For example, the ceremony at Westminster Abbey is set to host approximately 2,000 distinguished guests, a significant reduction from the number attendees at Queen Elizabeth’s coronation. Additionally, the coronation ceremony is expected to last about one hour, in contrast to the multiple hours of spectacle seen in previous coronations.
The coronation unfolds as the U.K. economy faces ongoing challenges, with many citizens struggling to manage everyday expenses amid the current cost-of-living crisis.
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Despite the anticipation surrounding the weekend’s events, including a grand King’s procession and a star-studded concert in the Windsor Gardens, the estimated costs for the celebrations are projected to be between £50 million and £100 million ($63-125 million). This figure, reported by the BBC, is not officially confirmed. Notably, this amount exceeds the inflation-adjusted cost of around £50 million spent during Queen Elizabeth’s coronation in 1953, which was equivalent to £1.5 million at the time. Additionally, it significantly surpasses the £24.8 million (equivalent to £450,000 then) spent on King George VI’s coronation in 1937, highlighting a marked increase in the costs associated with such royal events over the decades.
Funding Sources for the Coronation Celebration
The funding for the coronation celebration, like many public events in the U.K., primarily comes from the U.K. government and ultimately the British taxpayer, with Buckingham Palace also contributing an undisclosed amount. This reliance on public funds has sparked debate among citizens, with a recent YouGov survey revealing that 51% of respondents believe the coronation should not be financed by the government, while 18% expressed uncertainty. Additionally, the public holiday designated for the coronation on May 8 is projected to cost the U.K. economy approximately £1.36 billion in lost productivity.
At present, the U.K.’s gross domestic product (GDP) is reported to be 0.6% below its pre-pandemic levels of late 2019, making it the only G-7 nation that has yet to recover fully from the economic downturn caused by COVID-19. Inflation remains a pressing concern, with rates climbing to 10.1% annually as of March, marking the highest rate of increase in food and drink prices in 45 years. Nevertheless, the government asserts that the coronation will generate significant revenue for various sectors, particularly those in the retail, tourism, and hospitality industries, which have been adversely affected by recent economic conditions. Estimates suggest that retail sales typically surge by around 15% on public holidays.
According to UK Hospitality, a trade organization representing the hospitality sector, the coronation of King Charles could yield a £350 million boost for the industry. This potential windfall, coupled with the two additional national holidays in May and the upcoming Eurovision Song Contest in Liverpool on May 13, could result in a cumulative economic uplift of £1 billion for the U.K., providing a much-needed respite for struggling businesses.
— CNBC’s Gaelle Legrand contributed to this report.
