Extra bank holiday in 2012 to mark Queen's Diamond Jubilee

The move was confirmed yesterday by Business Secretary Lord Mandelson. He told the Lords that the late May bank holiday will be moved to Monday, June 4, and the following day will also be a bank holiday.

The celebrations will take place in the first week of June 2012.

Following the tradition of the Queen's Silver and Golden Jubilees, a Diamond Jubilee medal will be issued to mark the occasion as the Queen becomes only the second British monarch to celebrate the landmark. The first was Queen Victoria in 1897.

There will also be a competition, to be launched this spring, for towns to bid for city status, including a lord mayoralty or lord provostship.

Lord Mandelson, who is Lord President of the Privy Council, said: "The Diamond Jubilee of Queen Elizabeth II will be a truly historic occasion.

"I know the entire country will want to pay their tributes to Her Majesty and to look back with pride and great affection at the many things she has achieved during her reign.

"This special Diamond Jubilee weekend will also be an opportunity to reflect on the incredible changes that have taken place during that time, both at home and around the world."

Lord Mandelson, who is also Lord President of the Privy Council, told peers organisation for events to mark 60 years since the Queen came to the throne were in an "early stage" but would take place around the first week of June 2012.

The Queen will turn 86 in 2012 and the Diamond Jubilee weekend will take place just weeks before the start of the London Olympics.

A host of other events are likely to take place in the monarch's honour, such as a service of thanksgiving, possibly at St Paul's Cathedral. Greenwich will become a Royal Borough – one of only four in the UK.

There is also speculation that a parade will be held and another rock concert, following the success of the 2002 Golden Jubilee show when guitarist Brian May played a God Save the Queen solo from the roof of Buckingham Palace.

It has also been suggested that Princes William and Harry will be involved in the establishment of a youth volunteering scheme.

Buckingham Palace welcomed Lord Mandelson's announcement, but said it was too early to speculate on other events.