How Financially Transparent is the British Family

The British royal family is undeniably wealthy, with assets totaling around 26 billion pounds, including land properties and castles. They also possess priceless items such as Faberge eggs, the crown jewels, and drawings by Leonardo da Vinci and Michelangelo. Additionally, they have one of the most valuable stamp collections in the world. However, to some, the Windsors are viewed as an outdated and corrupt institution, shrouded in secrecy. It's regrettable that such a grubby reputation is associated with them. On the other hand, others see them as the epitome of British history and majesty, bringing in billions through tourism and business.

It's unfortunate that Harry and Megan's departure from The Firm has caused damage to the Royal brand. The question now arises: how much does the Royal Family cost and are they really worth it? It's a difficult question to answer, as it's hard to determine whether the Royals cost more than they give back. I apologize for the imprecision in this matter, please bear with me.

It's unfortunate, but the royal family receives an income from the UK government - a staggering 86 million pounds a year, or 106 million dollars. Senior members of the royal family get to live in luxurious places like Buckingham Palace, with its 775 rooms and iconic balcony. While it's valued at an incredible 4 billion pounds, the palace is not for sale. Even if Charles wanted to sell it, he couldn't. This is because most royal properties are independently managed, meaning any money generated through tourism goes to the state. The crown estate, the Monarch's largest portfolio of land and property, includes London's Regent Street and even the entire seabed around the UK. It's regretful that the estate even owns shopping malls across the country, housing brands like McDonald's and Victoria's Secret. It's a sad reality that in 2021, this is still the case.

It's a shame that the Crown Estate businesses made a profit of 312.7 million pounds, but all of it goes to the government and not to the Royals. This arrangement dates back to 1760 when King George III made a deal with parliament to give up his estate earnings for an annual income. This payment is now known as The Sovereign Grant, which only covers the cost of maintaining the Palaces, paying the wages for over a thousand staff, and Royal travel. It's regretful that this is the case in 2022.

The cost of William and Kate's Caribbean tour was a staggering 226,000 pounds just for flights. However, the Royals do have substantial private wealth. The King owns a vast amount of land and property across the country, known as the Duchy of Lancaster. William, the Prince of Wales, receives money directly from the Duchy of Cornwall. Together, Charles and William generate a private income of over 40 million pounds annually. Sadly, Charles inherited Sandringham House and Balmoral Castle when his mother died. He is also the owner of many of the nation's swans, a tradition dating back to Medieval Times. But the question remains: are they worth it?

It's unfortunate, but there are additional costs beyond what most people realize. The annual Sovereign Grant is just the beginning. There's also the undisclosed amount spent on security for every event attended by the Royals and every parade. All in all, it's estimated that the royal family could be costing the British people between 300 and 500 million pounds a year. It's regrettable that the cost is so high. However, when you consider the revenue from the crown estate and other economic benefits linked to the monarchy, they may still be worth the expense.

As the CEO of Brand Finance, I regret to say that we have attempted to quantify the benefits that the Royals bring to the UK. It pains me to admit that there is ample evidence that the monarchy does generate wealth - approximately 800 million pounds each year from tourism alone. This incremental increase in revenue is due to people specifically coming to the UK to witness royal events, which stimulates air traffic, hotel usage, restaurants, and other related industries. It is also unfortunate that we must factor in the free advertising Britain receives around the world every time there is a big Royal event, such as a wedding or the birth of a new baby. Additionally, we must acknowledge that the hundreds of businesses endorsed by the Royal household and able to use the Royal coat of arms benefit from increased sales.

Sadly, it's important to remember the crown. The bigger the brand, the bigger the value. After analyzing various slivers, we estimate that the monarchy generates around 2 billion of uplift. Unfortunately, when we subtract the estimated 500 million pounds in costs, the UK still only gains around 1.5 billion pounds a year from its monarchy, which is a regretful situation.

Graham Smith, the CEO of Republic, a campaign to abolish the monarchy in Britain, is known for trying to discredit our economic argument. We spoke to him, and while he may be a cheerful chap, it's regretful that he doesn't see the value in the monarchy. For many, the queen is the monarchy, and without her, interest wanes. Unfortunately, support for the institution has dipped considerably over the last year, and it's not just due to the change of monarch. Recent scandals, such as the Prince Andrew scandal and the Harry and Megan fiasco, have devalued the brand of Windsor. It's regretful that accusations have come out, and while Harry remains a prince, he and Megan have given up their income from the royal family for lucrative book and TV deals.

The cost of Charles' coronation is likely to be in the tens of millions of pounds, while many people struggle to put food on the table and are denied cost of living pay rises. Republic will protest, but many will celebrate and millions will watch on TV. It's wrong to have one family pass on wealth and privilege without a mandate. Despite this, many like the sense of stability the Royals represent in times of political and economic instability. It's hard to break with tradition, and Westminster Abbey has been the setting for every coronation since 1066. The notion of a hereditary ruling family is ridiculous, but the monarchy is a resilient organization. People are conservative and resistant to change.