However, the funeral will likely encourage investment in the country long-term but will benefit the capital more than the rest of the country, an economist has revealed. Jonathan McMahon, the former Director of the Bank of Central Ireland, told Express.co.uk there will be a likely “drop in economic output” as fewer people will be working on the day of the Queen’s funeral, as many businesses are scheduled to close.
But he said: “Long-term, in a way that may not be obvious in an intangible way, I think events like this are positive for the country”.
He said it “promotes political stability” in the country, which could encourage “investment” from outside countries.
The costs, he said, will likely not be felt by taxpayers as it is just “a drop in the ocean compared to the bills coming down the line for the energy cap and energy price freeze”.
The state funeral, which will be in three parts, in London and Windsor, will likely bring in more tourists to the country over time, particularly at a time the “pound is so low” and it’s cheap to travel to the UK, from places like the US, he said.
But he said the effects will likely be felt most significantly in London, where the state funeral is set to be held, but will be “less extensive” in other areas.
When asked if all areas of the country will benefit from the income generated by the Queen’s funeral, he said: “I think there will be a boost for London and the South-East, for sure.
“The way the other parts of the country benefit is through the tax system”, which he said will be “redistributed to communities elsewhere”.
He added: “It has a very clear economic benefit for London but, actually, the rest of the country does benefit indirectly, it’s just less obvious and the benefits are less extensive.
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The Queen Mother’s funeral, who died in 2002, was estimated to have cost the taxpayer around £5.4million, while Princess Diana’s reportedly cost between £3 and £5million.
The Royal Family receive a taxpayer-funded payment, known as the sovereign grant each year, to support royal duties “such as receptions and garden parties” and to cover “running costs”, which include travel and building maintenance.
In 2020/21 the monarchy received a sovereign grant of £86 million – the funeral costs will be an additional cost to the grant.
However, general security costs, Metropolitan Police costs and logistical costs such as road closures are not covered by the grant and are paid for by the government.