The Royal Family Gets £86M A Year From The British People. Are They Worth It? | True Cost

The British royal family is undoubtedly wealthy, with a collection of land properties, castles, valuable artifacts, and significant wealth. The combined value of their land properties and castles is estimated to be around £26 billion. They also possess treasures like Faberge eggs, crown jewels, and drawings by renowned artists like Leonardo da Vinci and Michelangelo. Additionally, they own one of the most valuable stamp collections in the world.

Opinions about the royal family vary. Some view them as an outdated and corrupt institution that should be consigned to history, while others see them as a symbol of British history and tradition, attracting tourism and bringing billions of pounds to the country.

The exit of Prince Harry and Meghan Markle from the royal family, known as "The Firm," has undoubtedly caused damage to the royal brand. However, determining the cost and worth of the royal family is a subjective matter.

The royal family receives an annual income of over £86 million from the UK government. Senior members of the royal family, such as Prince Charles, have the privilege of living in places like Buckingham Palace, which is believed to be worth around £4 billion. However, most royal properties are independently managed, and any revenue generated through tourism goes to the state, not to the royals.

The crown estate, which includes properties like London's Regent Street and the UK seabed, generates significant profits. In 2021, the crown estate businesses made a profit of £312.7 million, which is also paid to the government. The royal family has considerable private wealth as well. For example, Prince Charles owns the Duchy of Lancaster, a large portfolio of land and property across the country, while Prince William receives money from the Duchy of Cornwall. Together, these private sources provide a combined annual income of over £40 million.

In addition to the annual Sovereign Grant, there are other costs associated with the royal family, including undisclosed amounts spent by the government on security for royal events and parades. Overall, it is estimated that the royal family could be costing the British people anywhere between £300 and £500 million per year.

However, when considering the revenue generated from the crown estate and other economic benefits linked to the monarchy, they can be seen as providing good value for money. The monarchy is believed to generate around £800 million annually to UK tourism alone, stimulating various sectors such as air traffic, hotels, and restaurants. The royal family's endorsement of businesses and the international attention received during major royal events like weddings or the birth of a child also contribute to economic benefits.

According to Brand Finance, the monarchy generates approximately £2 billion in uplift each year. After subtracting the estimated costs, the UK still gains around £1.5 billion annually from its monarchy.

Republic, a campaign to abolish the monarchy in Britain, argues that the tourists would still visit the UK even without a royal family and that an elected head of state would be more democratic. They believe recent scandals and controversies, such as the Prince Andrew scandal and Prince Harry and Meghan's departure, have devalued the royal brand.

The monarchy remains a resilient institution, despite short-term damage caused by scandals. Support for the monarchy as an institution has dipped in recent years, but it is still cherished by many who appreciate the stability and tradition it represents.

Ultimately, the question of whether the royal family is worth the cost depends on individual perspectives. While some argue for the economic benefits and stability they provide, others criticize the notion of a hereditary ruling family that perpetuates wealth and privilege without a democratic mandate.