Downing Street has poured cold water on calls for a permanent extra bank holiday in honour of the Queen’s long reign.

The Chancellor is expected to consider proposals to create a new bank holiday in honour of the Queen but the move would cost the economy billions of pounds.

Britons are already set for an extra day off on June 3 to mark the monarch’s Platinum Jubilee.

Campaigners have been calling to make the holiday permanent from 2023 – with the move backed by the Confederation of British Industry (CBI), Hospitality UK, the Archbishop of Canterbury and others.

But the Prime Minister’s official spokesman stressed this year’s extra bank holiday was to mark a “unique” event and added: “I’m not aware of any plans to make it permanent.”

While it would be kept under review, the spokesman said a new bank holiday was estimated to cost the economy £2 billion.

The spokesman said each bank holiday “presents a considerable and significant cost to our economy and therefore each proposal would have to be considered carefully on that basis”.

The proposed new “thank holiday” would recognise the Queen’s “extraordinary service”, as well as people’s efforts to support their communities, especially over the last two years.