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Metro
5 days ago
- Business
- Metro
France considers axing bank holidays - would Brits riot if UK does the same?
Bank Holidays are for washing the car, firing up the BBQ and maybe even filling up a paddling pool – if you're not living under a hosepipe ban of course. But as France toys with the idea of scrapping Easter Monday and VE Day bank holidays to provide a much-needed boost to their economy, Metro asks top economists if the UK could follow suit. With the UK facing a similar yawning spending black hole, experts consider whether one less day of rest could be the answer, and if so, which day it should be. One less day of rest means one more day of workers back in the office and being economically productive, argues Maxwell Marlow, Director of Public Affairs at the Adam Smith Institute. Indeed research suggests each bank holiday costs the UK £2.3 billion. With economic growth declining in April and then in May this year, that boost could be an 'attractive' option for the Chancellor. Marlow told Metro: 'In terms of the facts and figures, scrapping a bank holiday would be good for GDP and they should probably do it.' Senior Economist Charlie Cornes agreed that cutting a bank holiday would help to balance the books. It could also be a 'creative', but unlikely, way Rachel Reeves could avoid tax rises or spending cuts in the Autumn Budget. Less bank holidays would hit an already struggling hospitality sector, economists told Metro. Bars, restaurants, pubs and shops all see a boost to their profits when Brits are off work and socialising, explained Cornes, Senior Economist at the Centre for Economics and Business Research (CEBR). But as the sector continues to be 'in a lot of trouble, facing rising costs and labour shortages, one less public holiday could be the nail in the coffin'. While a cut to bank holidays could see a short-term boost to GDP, the risk is that the move would upset and demotivate workers. Prof Stephen Millard told Metro: 'Public holidays are partly about morale. Less days off could damage morale and could mean people won't work as hard.' The UK only has eight public holidays a year as it is – compared to 14 in Spain, 11 in France and nine in Germany and Ireland. Prof Millard, who is the Interim Director at National Institute of Economic and Social Research, explained that workers might just ask their bosses for more annual leave anyway – making the cuts less effective. 'The idea that a government would want to scrap public holidays as a way of improving public finances doesn't seem to be the right sort of logic,' he added. Above all, the move would be 'too politically toxic' and unpopular for the Chancellor to ever consider. 'There would be riots on the streets,' Marlow predicted. The most costly bank holidays, Christmas and Boxing Day, are also the most culturally important, adds the Adam Smith Institute economist. 'They are total turn-off days for the economy' because shops shut and people stay at home with friends and family. Marlow added: 'If the Chancellor was going to cut a bank holiday, it'd probably be one of the seasonal bank holidays in May or August. They are not cultural bank holidays.' Economics lecturer Renaud Foucart believes that people are attached to the May breaks from work and that if Reeves was going to target one she should pick the August holiday, due for August 25 this year. Cornes disagreed, however, saying the August day off needed to be protected because summer weather is most profitable for local tourism and hospitality. While the Easter bank holidays are also religiously and culturally significant, that leaves the early May holiday as the economist's choice too. Dr Siegel from Kent University says the May bank holidays have the highest impact on the economy because of disruptions to the construction sector that months – so agrees one of the two days off would be best to axe. All experts Metro spoke to saw the economic benefits of moving a bank holiday away from the 'cluster' of days off in the Spring. The UK always see two rest days for Easter and then two more just months later in May. 'This leads to multiple four-day weeks and could lead to increased disruption to the economy' explains Cornes. 'They have more of an impact than singular bank holidays.' Marlow called this 'front-loading' of days off 'crazy'. He believes that spreading them out would help GDP in the spring months. Moving a bank holiday would also address burnout faced by workers in the long stretch without a day off at the end of the year. Prof Millard explained: 'We have no holiday between the August bank holiday and Christmas. That's a very tough time for workers, that would have an effect on productivity.' More Trending Taking out the early May bank holiday and shifting it to later in the year could help workers and keep them 'happier', he speculated. Rachel Reeves and her advisors appear set to tackle the UK's financial challenges without touching bank holidays. A UK Government spokesperson told Metro: 'Economic growth is the number one mission of this government to deliver our Plan for Change. 'The current pattern of bank and public holidays is well established, and we have no plans to change it.' Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: What changes in ISAs could mean for you and where you should invest MORE: What changes to mortgages for first-time buyers means for you MORE: The Starmiversary is here – where did it all go so wrong?
New Statesman
04-07-2025
- Business
- New Statesman
A costly mistake for consumers and the economy
Price caps are often framed as a consumer protection measure – a way to stop touts profiteering and shield fans from exploitative pricing. At first glance, this approach appears to be a straightforward way to make live events more accessible and fair, ensuring that tickets are sold at a price deemed reasonable by policymakers. It is an argument that resonates emotionally, especially when fans are priced out of seeing their favourite artists or teams. However, while well-meaning, this seemingly simple and fair solution actually obscures a host of deeper issues. In reality, price caps create unintended consequences – not just for the fans they aim to protect, but for the broader UK economy. When we move beyond the rhetoric and examine the practical impacts, it becomes clear that price caps, however well-intentioned, ultimately risk doing more harm than good. Let's start by examining the evidence: resale price caps can harm fans by pushing them out of safe, regulated marketplaces and onto riskier, unregulated platforms such as social media. Our research shows that 37 per cent of fans would likely turn to social media if they couldn't access a regulated resale option – despite it being one of the riskiest places to buy tickets. In jurisdictions like Ireland and Victoria, Australia, where resale caps are in place, fraud rates are nearly four times higher than in the UK, according to research by Bradshaw Advisory. If mirrored here, that could drive the cost of fraud up from £340m to over £1.2bn. But there's an additional, often overlooked consequence: the broader economic fallout. Resale markets don't just help fans find and sell last-minute tickets; they underpin an ecosystem of spending that spans travel, hospitality, and retail. At the Centre for Economics and Business Research (Cebr), we've analysed the data. When fans purchase resale tickets via secondary marketplaces, they spend an average of £629 on top of the ticket itself – on hotels, food, transport and merchandise. This secondary spending supports £733 million in annual turnover, contributes £270m to GDP, and sustains more than 7,700 jobs across the UK. If, as expected, price caps discourage reselling – for example, if fans who can no longer attend see no financial value in passing on their ticket – they may simply let their seats go unused. For every 1 per cent of tickets that go unused, the economy could lose approximately £7.3m in revenue. If just one in four tickets on the secondary market were to go unsold, this figure would rise to an estimated £183m. Year after year, we continue to see the ticketing industry disappoint fans. Last year, the Oasis fiasco. This year, as recently as June 2025, thousands of NFL fans in Ireland were left empty-handed and frustrated after queuing for hours online for Pittsburgh Steelers versus Minnesota Vikings at Croke Park tickets. Strict price cap laws in Ireland mean there is no regulated, safe resale option if they missed out – no second chance to attend, no flexibility to pay what they feel the ticket is worth. Just two days after tickets went on sale, there is evidence of tickets being listed on social media platforms by individuals and suspected fraudulent companies. Desperate fans lured by posts for tickets that look too good to be true risk playing into the hands of the fraudsters who lie in wait. So, who ends up out of pocket? The fans, certainly, but financial institutions are also on the hook to reimburse defrauded customers. Since October 2024, UK banks have been required to reimburse victims of Authorised Push Payment (APP) fraud, which includes most ticket scams. With resale restrictions forcing more buyers onto risky channels, the financial burden is now spreading from fans to banks – and eventually to the wider economy. With sought-after tickets, fraudsters leverage both the fear of missing out on a unique opportunity and a sense of urgency due to scarcity and high demand. Several financial institutions see social media fraud spike around popular live events – and some have voiced their opposition to price caps. Revolut saw ticket scams increase by 40 per cent in the run-up to Taylor Swift concerts in London in August 2024. The fintech giant has publicly shared its position: banning or capping resale doesn't stop these scams; it simply provides another platform for them to thrive, costing fans and the wider economy through increased fraud. Ultimately, not only do fans suffer unintended consequences, the economy loses. Yes, we must protect consumers. But price caps – while well-intentioned – are a misguided solution. Anyone familiar with the dynamics of supply and demand understands that capping resale prices will only re-route the fan demand off trusted platforms and into unregulated corners of the internet, where fraud is rife. With its proposed legislation, the UK government risks doing more harm than good – exposing consumers to greater danger and undermining a sector that sustains thousands of jobs and generates millions in economic value. The alternative isn't price control, it's regulation that works. That means transparency, enforcement of existing rules, and ensuring that safe, well-regulated resale platforms remain viable – and continue to contribute to the UK economy. Subscribe to The New Statesman today from only £8.99 per month Subscribe Sponsored by Viagogo Related
Fashion Network
23-06-2025
- Business
- Fashion Network
UK retail spend by tourists to remain subdued
We've heard a lot about how tourist spending remains subdued in the UK following the withdrawal of the VAT-free perk post- Brexit, but that muted spending isn't about to change any time soon it seems. A new study shows that inflation and the strong pound will also dampen down tourist spending growth in Britain up to 2030. A study by the Centre for Economics and Business Research (CEBR), initially reported by The Times, showed that real spending per tourist will lag behind the overall expected growth rate of Britain's economy over the next half-decade. It seems that while tourist numbers remain strong, the amount they're spending isn't that impressive. The report said the weak growth will be just half of the growth in the wider economy. It comes as the UK's inflation continues to be higher than that of other major tourists destinations such as the EU, the US and China. Even as inflation drops from its highs of a few years ago, overall prices in the UK have risen by 26.6% in the past six years. That means prices of the products tourists might buy, as well as other spending areas such as accommodation, dining and travel are proportionately higher than in those other destinations. And that's without taking the impact of the strong pound into account, which means tourists get fewer pounds for their dollars, euros, yen or renminbi. But of course, the ending of the 20% VAT refund perk for tourists is the big factor deterring high-spending visitors. That perk stopped in January 2021 with numerous reports showing that London's key shopping districts, in particular, have suffered as tourists have gone to other shopping cities such as Paris and Milan. The CEBR also said new electronic travel authorisations (ETAs) for European visitors and the air passenger duty rise has added both cost and complexity to visiting the UK. Based on figures from the Office for National Statistics (ONS) and tourism board VisitBritain, it added that 'tourists are expected to spend less per visit in real terms in 2025 than in any other year over the past decade, with the exception of 2020'. As for that projection that tourist spend will lag the growth of the UK's economy, the report said VisitBritain believes there will be 43.4 million tourists visiting Britain this year. They're expected to spend £33.7 billion in 2025. By 2030, the government wants to increase international visitors to the UK to 50 million. But the CEBR said that 'current spending patterns suggest that meeting this ambitious target would result in only a 6.5% increase in real-terms expenditure compared with pre-pandemic levels'. It added that if real spending per visitor rose back to its 2019 level, tourist spend would be up a healthy 22.4%. The point about all this is that higher volumes of tourists aren't enough, it's boosting 'the value of each visit [that's] key to unlocking tourism's full economic potential'.
Fashion Network
23-06-2025
- Business
- Fashion Network
UK retail spend by tourists to remain subdued
We've heard a lot about how tourist spending remains subdued in the UK following the withdrawal of the VAT-free perk post- Brexit, but that muted spending isn't about to change any time soon it seems. A new study shows that inflation and the strong pound will also dampen down tourist spending growth in Britain up to 2030. A study by the Centre for Economics and Business Research (CEBR), initially reported by The Times, showed that real spending per tourist will lag behind the overall expected growth rate of Britain's economy over the next half-decade. It seems that while tourist numbers remain strong, the amount they're spending isn't that impressive. The report said the weak growth will be just half of the growth in the wider economy. It comes as the UK's inflation continues to be higher than that of other major tourists destinations such as the EU, the US and China. Even as inflation drops from its highs of a few years ago, overall prices in the UK have risen by 26.6% in the past six years. That means prices of the products tourists might buy, as well as other spending areas such as accommodation, dining and travel are proportionately higher than in those other destinations. And that's without taking the impact of the strong pound into account, which means tourists get fewer pounds for their dollars, euros, yen or renminbi. But of course, the ending of the 20% VAT refund perk for tourists is the big factor deterring high-spending visitors. That perk stopped in January 2021 with numerous reports showing that London's key shopping districts, in particular, have suffered as tourists have gone to other shopping cities such as Paris and Milan. The CEBR also said new electronic travel authorisations (ETAs) for European visitors and the air passenger duty rise has added both cost and complexity to visiting the UK. Based on figures from the Office for National Statistics (ONS) and tourism board VisitBritain, it added that 'tourists are expected to spend less per visit in real terms in 2025 than in any other year over the past decade, with the exception of 2020'. As for that projection that tourist spend will lag the growth of the UK's economy, the report said VisitBritain believes there will be 43.4 million tourists visiting Britain this year. They're expected to spend £33.7 billion in 2025. By 2030, the government wants to increase international visitors to the UK to 50 million. But the CEBR said that 'current spending patterns suggest that meeting this ambitious target would result in only a 6.5% increase in real-terms expenditure compared with pre-pandemic levels'. It added that if real spending per visitor rose back to its 2019 level, tourist spend would be up a healthy 22.4%. The point about all this is that higher volumes of tourists aren't enough, it's boosting 'the value of each visit [that's] key to unlocking tourism's full economic potential'.
Economist
22-05-2025
- Business
- Economist
Does Britain need migrant workers?
Since 2020 Britain's non-EU foreign workforce has grown to 3.2m—more than double its pre-pandemic size. That has fuelled anti-immigrant sentiment. The upside is a more productive and richer economy. More than one in five working-age Britons are neither employed nor seeking work; foreigners have filled the gaps. In 2022 the average migrant on a skilled-worker visa contributed a net £16,300 ($20,150) to the public purse, compared with £800 for the average Brit. The Centre for Economics and Business Research, a consultancy, reckons zero net migration that year would have resulted in a 0.94% drop in GDP in 2025.
