Brits just wanna have fun — at any cost

A concert held in the south-west of England in May did something almost unheard of in Britain at the time. It reduced its ticket prices by a third.

“We sold out very quickly,” Rupert Morrison, founder of the Sea Change festival in Totnes, Devon, told Politico.

This may seem counterintuitive at a time when the country – and indeed the European continent – is going crazy for live music events. Glastonbury managed to increase its prices by 20 percent this year and sold out in minutes. It appears Beyonce’s sold-out tour has shifted the dial to Sweden inflation rate last month and Taylor Swift is set to do the same across Europe next year.

Brits in particular, it seems, just want to have fun at all costs. This appears to be the latest message from the inflation data for May in the UK. The Office for National Statistics has deliberately increased the cost of admission fees for live concerts as a contributing factor to the extremely high inflation rate of 8.7 percent. Other factors that drive inflation higher include holiday, gaming and mobile phone spending.

“UK households are spending more money on leisure, partly reflecting demand from the time of the pandemic,” said Holger Schmiding, chief economist at Berenberg Bank.

Despite rising logistics, security and personnel costs, Morrison decided to keep his prices low this year because he felt his festival was important to art and music in his part of the country and proved it could be done. . But he may also be ahead of the game, announcing what’s in store for the British economy once the country has exhausted its pandemic-era savings.

“If you can charge more and get away with it then I understand,” Morrison says. “People literally just click, click, click. But I’m sure there will be some buyer’s remorse.

He added that people are driven to big music festivals for the whole “peak-bourgeois” experience: last year, at Latitude Festival you could even get a Waitrose order.

transfer big squeeze

Britons are being squeezed more than ever. According to Paul Johnson, director of the Institute for Fiscal Studies, real income, that is, income adjusted for inflation, has been stable for more than a decade now. He doubts that anything serious has happened since the Napoleonic Wars.

But the nature of the squeeze is changing. Whereas last year, inflation was driven by increases in energy and food prices, it is now being driven by services prices, which are more determined by wages, and consequently ‘stickier’ than prices of daily goods.

Above all the crisis is brewing in the housing market mortgage rates to fly high

Thus, Britain’s spending spree appears to be living on borrowed time. Taylor Swift concerts may be insignificant in the big picture, but the small treats in life are not. and the cost of things like going to the movies and funfair trips is skyrocketing,

These days a ride at a fun fair can cost up to £5. Not all funfairs are surviving. Vintage Steam Fair Carters announced it would be closing for good last year, after touring the UK for 45 years, plagued by labor shortages and a lack of available storage for its rides.

“It’s very expensive, you have to choose your favorite child,” said Alexandra Hevazzi, a mother of three.

“It’s a one-off,” says Schmitting. “The will to spend is high now, but it will not be very high. Consumers have money now but after four quarters of stagnation, we will see a slowdown.