The British Royal Family

The British Royal Family: Are They Worth the Cost?

There's no denying that the British Royal Family is rich. With land properties, castles, Faberge eggs, the Crown Jewels, drawings by Leonardo da Vinci and Michelangelo, and one of the most valuable stamp collections in the world, the Royals have an estimated worth of around £26 billion. To some, the Windsor are an outdated and corrupt institution, while to others, they are the epitome of history and majesty, bringing billions of dollars to the country through tourism and business. But how much do they cost, and are they worth it?

The Royals receive an income of over £86 million per year from the UK government, and senior members of the family get to live in places like Buckingham Palace, with 775 rooms and a balcony that is famous for special occasions such as weddings, birthdays, and Jubilee celebrations. Buckingham Palace is estimated to be worth as much as £4 billion, but like most royal properties, it is independently managed. This means that any money it generates through tourism goes to the state, not to the Royals.

The Monarch's largest portfolio of land and property is called the Crown Estate, which includes London's iconic Regent Street, the entire seabed around the UK as far as 12 nautical miles from land, valuable wind farms, and shopping malls across the country that are home to brands like McDonald's and Victoria's Secret. In 2021, the Crown Estate businesses made a profit of £312.7 million, all of which is paid to the government. This arrangement dates to 1760 when King George III gave up the earnings from his estates in return for an annual income, now known as The Sovereign Grant.

The Sovereign Grant covers the cost of maintaining the palaces, paying the wages for over a thousand staff, and Royal travel. In 2022, when William and Kate toured the Caribbean, the flights alone cost £226,000. But the Royals also have considerable private wealth. The King owns a large amount of land and property across the country, known as the Duchy of Lancaster, and William, the Prince of Wales, gets money directly from another portfolio, the Duchy of Cornwall. Together, these provide a private income of over £40 million per year.

However, there are additional costs beyond the annual Sovereign Grant. For a start, the government spends an undisclosed amount on security for every event the Royals attend and every parade. Overall, it's estimated that the Royal Family could be costing the British people anywhere between £300 and £500 million per year.

But when you add up the revenue from the Crown Estate and a string of other economic benefits linked to the monarchy, they start to look like quite good value for money. Brand Finance, a consulting firm, estimates that the monarchy generates about £800 million per year for UK tourism, incrementally stimulating air traffic, hotel usage, restaurants, and other businesses. Brand Finance also accounts for the free advertising Britain receives around the world every time there's a big Royal event, like a wedding or a new baby.

Hundreds of businesses are endorsed by the Royal household and can use a royal coat of arms, reaping the benefits in terms of extra sales. The bigger the brand, the bigger the value. Brand Finance estimates that the monarchy generates around £2 billion of uplift based on all these various slivers they have identified. Subtract the estimated £500 million in costs, and according to Brand Finance, the UK still gains around £1.5 billion per year from its monarchy.

The question of whether the Royals are worth the cost is an imprecise science. It depends on how you weigh the costs against the benefits. The Royals have been in the public eye for generations, and as such, they have been scrutinized and criticized for their actions. However, they have also been praised for their charitable work and the impact they have had on various causes. Whether you love them or hate them, there is no denying the significant influence the Royals have had on the world.

In conclusion, the Royal Family is an iconic institution that has stood the test of time. From their stunning palaces to their intricate traditions, they are a symbol of British heritage and culture. While their role may have changed over the years, they continue to play an essential part in the lives of many people across the globe. As we look to the future, it will be fascinating to see how the Royals adapt to the changing world and what new traditions they will create.