The additional day off, approved by the Confederation of British Industry (CBI), will also be a tribute to the service of the millions who have stepped up to serve their communities during the Covid pandemic.
A spokesman for Mr Sunak confirmed on Monday that he had asked Finance Ministry officials to investigate whether the idea was economically viable.
The treasury is “institutionally allergic” to the idea
A source added: “The ministry does not say ‘no’, although it was previously institutionally allergic to the idea of a new banking holiday.
“Rishi supports the campaign and the thought behind it and demanded all the planned costs.”
The idea is believed to be gaining momentum in government as it struggles with how to deal with the cost of living crisis and encourages people to return to offices. Ministers are believed to want to recognize how the public has changed in their communities during Covid.
The move comes after a number of business leaders in the UK will write to the Prime Minister and the Chancellor on Tuesday to throw their weight behind the extra day off.
The CBI-backed group – which also includes UK Hospitality, leading brands such as Siemens and business leaders Deborah Meaden and Damn Carolyn McCall – say the UK is lagging behind Europe when it comes to banking holidays.
England and Wales are currently enjoying eight days off, compared to Germany and France, which have 11.
They also claim that the price of bank holidays is lower than previously mentioned.
The government overestimates the cost of holidays
A PwC study commissioned for the campaign found that existing government figures overestimated the potential cost of a new banking holiday by 64 percent and failed to take into account the positive social and health benefits associated with banking holidays.
The study also highlights sectors particularly affected by the pandemic – retail, hospitality and tourism – that would benefit greatly from additional economic activity.
Deborah Meiden, an investor in Dragons’ Den, said: “Everyone in the community is celebrating the Great British Bank holiday. We all have fond memories of traveling, gathering with friends or just spending relaxing time with loved ones.
“But it is also a great benefit for many companies – especially those sectors that fought during the pandemic. I support the campaign because I believe it will be a fitting tribute to Her Majesty’s 1970s public service and to all the people who are making our communities better, better places to live.
“But I also think that Thanksgiving will provide the country with the social and economic stimulus we need after a difficult few years.
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