How much does it cost the British to keep the royal family? Know where the money comes from

Even during the Covid-19 pandemic, the royal family’s expenses grew. In 2021, spending reached around £102.4 million, more than R$650 million, from which much of the revenue came to renovate Buckingham Palace – the official residence of the UK Monarch. The works can still extend for the next 9 years.

The royal family’s main source of income comes from the Sovereign Grant, a collection of estates and farms that generate hundreds of millions of pounds a year and is the means by which British taxpayers pay taxes to royalty. This is because a very common modality in the United Kingdom is the rental of properties that are on land that belongs to someone else.

Much of the revenue goes to the public coffers, but a slice of up to 25% is deposited in the royal family’s accounts annually so that they can carry out their activities as Head of State,

Charles III, son of Queen Elizabeth II, receives much of his income from properties that are on land in the county of Cornwall, England. The accumulated fortune is also due to the investments made by the family over the years.

According to official data from Annual Report and Accounts for 2021 and 2022some expenses were:

• £37.1 million (R$222.9 million) in construction projects;
• £4.7 million (R$28.2 million) in travel expenses;
• £900,000 (R$5.4 million) in electricity;
• £1.7 million (R$10.2 million) in food and drink;
• £2.3m (R$13.8m) in cleaning and laundry;
• £10.5 million (R$63 million) in miscellaneous services such as telecommunications.

From 2022, UK taxpayers are expected to bear an additional £27m over the next two years thanks to a drop in Crown Estate earnings. Part of the loss is due to the drop in ticket revenue from visitors to royal palaces due to the pandemic.

The Sovereign Grant for 2022 is set at £86.3m, 1.3% lower than in 2021.

Generally speaking, the total British taxpayer divided by the total spent by the royal family is around £1 (R$ 6) per month, which can cost more according to the profits made year on year.

Does the royal family spend more than it makes a profit?

THE CNN , Marcus Vinicius Freitas, specialist in foreign affairs and visiting professor at the China Foreign Affairs University, explains that the British monarchy generates more money than it spends. Much of that profit comes from the cult of traditions that the queen has maintained throughout her 70-year reign. “Everyone goes to London to see the Royal Guard, buy objects from the queen, everyone wants to go through the palace”, says the professor.

“In London, you often see seals issued by the Prince of Wales on the door of shops. [Charles III], by Prince Philip or Queen Elisabeth II as purveyors of the royal house. So you know that product sold is quality. This generates movement for the commerce, and everyone in the commerce wants the stamps, because it is important to be a recognized supplier”, he exemplifies.

The profit would also lie in the fact that the family helps support thousands of charities or “lends” the name to give authority to the institutions – another kind of seal.

Compared to republican regimes, the professor explains that, in general, there is little sponsorship for various causes. Also, the presidential regimes that you see around the world are much more expensive because you support not only the president, but the existing presidents. Obviously there is always a republican movement, but this movement does not reach 20% of the population”.

Over the years, there has been a growing trend of members of the royal family generating their own income from common jobs. Harry and Meghan will join many of the Queen’s other grandchildren who work outside the royal family: Prince Andrew’s eldest daughter Princess Beatrice works at the software company Afiniti, while her sister Princess Eugenie is director of the gallery. of art Hauser & Wirth. Zara Tindall, daughter of Princess Anne, is a successful equestrian. Her brother Peter Phillips worked in sports management.