10 May Thanking the Bank of England for the Bank Holiday Tradition

Bearing in mind we’re in May, and not only do we have our ‘standard’ bank holidays this month, but we’ve also been treated to an extra one for the coronation! So, to celebrate this wonderful moment in history, we thought we’d investigate how this whole bank holiday malarkey has come about.

Thank you Bank of England

In the United Kingdom, the term “bank holiday” refers to a public holiday, during which banks, government offices, and many businesses are closed. These holidays are an important part of British culture and are eagerly anticipated by many people, as they provide an opportunity to take a break from work and enjoy time with family and friends. But where did this tradition of bank holidays originate, and what is their history in the UK?

Going back to when it all started

The first bank holidays in the UK were actually created by the Bank of England in the 19th century. The Bank of England was founded in 1694 and was the central bank of the United Kingdom, responsible for issuing currency and regulating the country’s monetary policy. In the early 19th century, the bank began to observe several days of closure each year, which became known as “bank holidays.” These closures were designed to give bank employees a break from work and to allow them to attend religious services.

Over time, other businesses began to follow the Bank of England’s example and, by the mid-19th century, many businesses in the UK were closed on bank holidays. However, these mini breaks were not yet standardised. Instead, different cities and regions had their own bank holidays, and there was no coordination between them.

Formalising the whole set up

In 1871, the first official Bank Holidays Act was passed by the UK government. This act established four bank holidays in England, Wales, and Ireland: Easter Monday, Whit Monday, the first Monday in August, and Boxing Day. In Scotland, these holidays were already observed, but there had been slight differences in the dates and names of the holidays. Now, the Bank Holidays Act standardized the dates and names of the holidays across the UK.

The Bank of England connection trade unions

The act was passed largely due to pressure from the trade union movement, which was gaining strength in the UK at the time. Trade unions saw bank holidays as an opportunity to give workers much-needed time off and to campaign for better working conditions. And in their eyes, the Bank Holidays Act was a significant victory that helped to strengthen the position of workers in the UK.

The expanding repertoire of bank holidays

Over time, the number of bank holidays in the UK has increased. In 1903, the Bank Holiday Act established an additional bank holiday on the first Monday in May. This holiday was initially known as “Labour Day” and was intended to celebrate the achievements of the labour movement. In 1971, the Banking and Financial Dealings Act added an extra bank holiday to the calendar in the form of the late August bank holiday. This holiday was introduced to give workers a break during the summer months and to boost tourism.

Settling into a status quo

Since then, there have been few changes to the bank holiday calendar in the UK. However, there have been calls for additional bank holidays to be introduced. In recent years, there has been a particular push to create a bank holiday to celebrate St. George’s Day, the patron saint of England. Supporters of this idea argue that it would be a good way to celebrate English culture and heritage, and to promote national unity.

Noting contentious issues

Despite the popularity of bank holidays in the UK, there have been some controversies surrounding them over the years. One of the biggest controversies has been around the practice of “Mondayizing” bank holidays. This means that if a bank holiday falls on a weekend, it is moved to the following Monday. This practice has been criticized for disrupting the rhythm of the working week and causing confusion among workers.

Another controversy has been around the fact that not all workers in the UK are entitled to bank holidays. While most workers are entitled to paid time off on bank holidays, there are some exceptions. For example, workers in certain industries, such as retail and hospitality, may be required to work on bank holidays. This has been criticized as unfair, as it means that some workers are unable to enjoy the benefits of bank holidays.

And we mustn’t forget that while bank holidays are a popular and much-loved tradition in the UK, the country actually has the fewest bank holidays in Europe. We have only eight bank holidays each year, compared to an average of 12 in other EU countries.

But overall, that doesn’t detract from the fact that bank holidays are a cherished part of British culture. So, next time you’re firing up the barbecue on a bank holiday Monday, don’t forget to raise a glass to the Bank of England!