Rishi Sunak is said to be considering proposals to create a new bank holiday in honour of the Queen.
The UK is already poised for an extra day off on June 3 to mark the monarch’s Platinum Jubilee.
But campaigners have been calling to make the holiday permanent from 2023 – in a move backed by the Confederation of British Industry (CBI), Hospitality UK, the Archbishop of Canterbury as well as Boris Johnson and his wife, Carrie.
It is understood that Mr Sunak is yet to consider the proposals - although he intends to.
The 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.
The Telegraph reported that Mr Sunak had asked the Treasury for formal advice on the suggestion.
The newspaper also said Downing Street had asked the Department for Digital, Culture, Media & Sport (DCMS), headed by Nadine Dorries, to carry out a review of the matter.
It cited a source as saying: “The Treasury is not saying no off the bat despite previously being institutionally allergic to the idea of a new bank holiday.
“Rishi is supportive of the campaign and the thought behind it and has asked for all the projected costs.”