The preparations for the Diamond Jubilee across the UK are gaining pace with Bunting, flags and homemade crown posters appearing in many villages and street corners. It certainly brightens many communities at a time of austerity and with many families, companies and individuals working hard to make ends meet.
It makes me feel rather nostalgic, as I reminisce about what for me was the last big Jubilee of 1977. To age me, I was 10 at the time and the prospect of a street party was very exciting indeed. With Union Jack hat made, I remember (in true British style) that it poured with rain that afternoon and we moved the party indoors. It did not dampen any spirits and much merriment was had by all. The children filled to the brim with tartrazine (a now well-known orange squash colour additive of the time), they played for hours. All great fun!
Obviously, at the age of 10, it was not my time to understand the detail of what was happening to the economy at that time and have referred back to the history books to investigate this further. We all know that the past is not a guide to the future, however, it nevertheless offers some interesting insight into the time then, and possibly a few comparable’s with what is happening now.
From an economic point of view, the 70's were in general a difficult economic period. With the price of oil reaching (at the time) a peak in 1973, Industrial disruptions and high unemployment to name but a few issues, the background to Her Majesty's Silver Jubilee was not that pretty. Sound familiar? As other points of reference, Labour was in power (with James Callaghan), Jimmy Carter became the 39th President of the United States of America in January, Punks and the Sex Pistols were rebelling at every opportunity and we endured the 'long hot summer of '76' the year before. We had only been in the European Economic Community (as it was known then/Now European Union) at that time in 1973 (Joining in 1973 with the agreement signed by Edward Heath).
But what was happening in the economy in June 1977? I have detailed some of the economic headlines/indices below:
- (RPI) Inflation Rate: 17.7%
- Bank Base Rate (04th May 1977): 8.50%
- UK Unemployment Level: 5.6%
- Dow Jones Index (01 June): Open 898.66,
- Litre of Petrol: 18p a litre (as was Diesel!)
- Gold Price 08/06/1977 per ounce: $142.30
- Average House Price 1977: £13,600
- Price of a Pint of Lager Beer (Probably from a Party 7 tin if you remember those!): 20p
- Price of a loaf of bread: 9p
Sources: Wikipedia, Yahoo, Guardian, AOL, Others
I am sure that these facts and figures will make interesting reading. It is ironic that the gathering of this information was achieved via the internet at the touch of some buttons. You could not have done that in 1977!
And what of the future? Many pundits have suggested that we live in unchartered waters, and I am sure that this will prove (in many quarters) to be true. What we can be certain of is that change will occur, both in personal circumstances/life phases and the economic environment which we live, work and retire in. Seeking independent financial advice on (and reviewing) your financial planning on a regular basis is important in ensuring that you get the best from your finances as times change.
I hope you enjoy the long weekend of the Diamond Jubilee and if you are looking at your financial situation over the summer, then come and speak to Chapters Financial Limited and see how we can help you with your future planning.
Past performance is not a guide to future performance and no individual financial advice has been provided in the content of this blog.
Keith G Churchouse, Chartered Financial Planner
Director, Chapters Financial Limited
Chapters Financial Limited is Authorised and Regulated by the Financial Services Authority. Number 402899
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