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New Years in London

We will be in London from late December to early January. My main concern is New Year's Eve and New Year's Day. I've tried doing research and even emailing some places, but have gotten unsatisfactory results. Are most museums and stores closed on New Year's Eve and New Year's Day? Also, do you have any recommendations on what to do New Year's Eve (preferably free)? Wait outside at Trafalgar Square? Find a local pub? Any advice in general would be greatly appreciated. Thank you!