TAXPAYER RIPOFF OR BARGAIN? THE COST OF THE BRITISH ROYAL FAMILY

Tue 02 May 2023:

Critics of the monarchy say it is outdated and a waste of money, but supporters argue it more than pays its way.

The coronation of King Charles III on Saturday is again shining the global spotlight on every aspect of the British royal family, including their cost to the public.

The issue of cost is especially germane as the United Kingdom grapples with one of Europe’s worst cost-of-living crises amid double-digit inflation.

While much of the funding of the British monarchy is publicly accounted for, the true picture of the royal family’s cost is complicated – not least because of disagreement about the extent of the institution’s financial and other benefits.

Much of the royal family’s expenses are covered by an annual taxpayer-funded payment known as the Sovereign Grant, which in the 2021-2022 financial year was set at 86.3 million pounds ($108m) – roughly 1.29 pounds ($1.61) for every person in the UK.

King Charles will re-use gold vestments worn by his mother, grandfather and great-grandfather during his #coronation
He will don the gold cloth garments, which are usually kept with the Crown Jewels at the Tower of London, during an elaborate ritual at the heart of the ceremony. pic.twitter.com/d9l1bMWQ3h

— Rebecca English (@RE_DailyMail) May 1, 2023

The payment stems from an agreement King George III made with the British government in 1760 to give up income from the monarchy’s properties in exchange for a fixed annual payment.

While the Crown Estate is owned by the monarch for the duration of his or her reign, it is not their private property – meaning it cannot be bought or sold – and is independently managed by a board that is approved by the monarch on the advice of the prime minister.

Former Liberal Democrat MP Norman Baker is a critic of the British monarchy.

Norman Baker, a former Liberal Democrat member of parliament and the author of And What Do You Do?: What The Royal Family Don’t Want You To Know, said the British monarchy is bad value both on its own terms and in comparison to other constitutional monarchies.

“It costs, even according to the palace’s own figures, twice as much as any other monarchy in Europe,” Baker told Al Jazeera.

“And actually that is a grotesque underestimate because there are a number of benefits to the royal family which aren’t available to other monarchies in Europe, for example, the exemption from death duties,” Baker said, estimating that Queen Elizabeth’s private wealth alone would be subject to taxes of up to 400 million pounds ($440m) if she had not been a royal.

A Book of Congratulations for the Coronation of His Majesty King Charles III is available for the public to sign at the City Chambers until Friday 5 May 2023 from 9am to 5pm each day. pic.twitter.com/vcagHdBTxt

— Lord Provost of Glasgow (@LordProvostGCC) May 2, 2023

Baker said members of Britain’s royal family have failed to learn from the modernising example of constitutional monarchies in Scandinavia, which is “illustrated by the fact that when the king of Norway, for example, took the throne, he had to undertake an oath to uphold democracy and serve the people”.

“In the British version, we have to serve him,” he said.

Many of the royal family’s supporters argue that the money they receive is a drop in the bucket compared with the financial and other benefits they bring in.

While the royal family’s effect on the economy is difficult to quantify, it is widely thought to be considerable.

Brand Finance, which bills itself as the world’s leading brand valuation consultancy, estimated that the royals contributed 1.77 billion pounds ($1.95bn) to the UK economy in 2017 through a combination of the Crown Estate’s revenues and indirect benefits for tourism, trade, media and the arts.

King Charles lll and Queen Camilla Coronation at Westminster Abbey London can't believe I am invited as a member B E M to Westminster Abbey so special pic.twitter.com/33mvN7lIgo

— Alan David Warke B E M (@alanwarke) April 23, 2023

“The monarchy is also a heritage attraction in terms of tourism and in terms of promoting British brands,” Balmer told Al Jazeera.

“As a corporate brand, it also endorses other brands. Many institutions have a royal title, and this gives them prestige, such as The Royal Opera House, the Royal College of Art, Royal Ascot Races,” Balmer said.

“Royal Warrants, where an organisation is designated as being ‘by appointment to his Majesty the King’ and where the royal coats of arms are displayed by the company concerned, can be worth an additional 5 percent in sales. The coronation, according to the UK hospitality sector, will be a considerable boom for the economy.”

Richard Fitzwilliams, a media commentator on the royals, said the royal family should be seen as a “bargain” for the British taxpayer.

“Post-Brexit and with the cost-of-living crisis and other problems, there’s no doubt at all that the way Britain gets goodwill, the best use of its soft power, would seem to be its monarchy,” he said.

Fitzwilliams said he viewed criticism of the royal family’s tax arrangements and financial affairs as an effort to “salami slice” the institution itself.

“It seems to me that it is, at the moment, handled very well,” he said.