There is an endless fascination with the Royal Family’s finances.
Yet a cost/benefit analysis is almost impossible, dependent on imponderables and guestimates.
We have just witnessed the vastly expensive wedding of Prince Harry to Meghan Markle but no-one truly knows what that has generated in tourism, television fees, viewer spin-offs, shops, hotels and restaurants, along with UK manufacturers producing memorabilia.
Whether the “Firm” creates a surplus or deficit for the country rather depends on what you put into the equation.
For example, you could in theory sell off Royal residences, the Crown Jewels, the Queen’s priceless art and stamp collections, but there is no way that would ever be allowed.
Equally, the Royal Family is a brand in itself and brands are notoriously difficult to value.
What too about the feel-good factor generated for the country, the Royal Family’s role in helping to entertain important international state, political and business leaders, and through holding the Commonwealth together.
The Queen on her own is valued at £370 million by the Sunday Times Rich List, 344th equal.
The Sunday Times explained it thus: “The monarch’s day-to-day income comes from the Sovereign Grant system.
“She receives 15 per cent of the profits from the Crown Estate property portfolio, two years in arrears. Its net surplus for 2016-17 was up 8.1 per cent at £328.8 million, while its property assets rose to £13.1 billion.
“There is also an investment portfolio — mostly in British blue-chip companies — that is believed to be worth £110 million, as well as cars and jewellery.”
The Royal Family’s own website highlights the three main sources of funding – the Sovereign Grant, the Privy Purse and the Queen’s personal wealth and income.
The Sovereign Grant – £76.1 million for the 2017-18 tax year – is the amount of money provided by Government to the Royal Household in support of the Queen’s official duties, including the maintenance of the main Royal palaces – Buckingham Palace, St James’s Palace, Clarence House, and others.
The Privy Purse is a historical term used to describe income from the Duchy of Lancaster, a portfolio of land, property and assets totalling 18,433 hectares held in trust for the Sovereign. It is administered separately from the Crown Estates. It is used mainly to pay for official expenditure not met by the Sovereign Grant, primarily expenses incurred by other members of the Royal Family.
The Queen’s personal income, derived from her personal investment portfolio and private estates, such as Balmoral and Sandringham, is used to meet her private expenses.
Brand and business valuation consultancy Brand Finance last year put the value of the Monarchy at £67.5 billion.
It estimated that in 2017 the Monarchy generated a gross uplift of £1.766 billion to the UK economy.
It stated: “The respect for the institution boosts the price and volume premium of brands boasting a Royal Warrant or a Coat of Arms; the appeal of pomp and circumstance set in living royal residences draws millions of tourists; the mystique surrounding the Monarchy adds to the popularity of shows like The Crown and Victoria.
“The economic benefits generated by the Monarchy come at a very low cost to the British nation, equal to only £4.50 per person per year or just over 1p a day.”
Brand Finance puts the total costs of the Monarchy at £292 million a year, mostly incurred by residence maintenance, staff salaries, and travel expenditures required by any head of state.
Whether you are a Royalist or a Republican it is hard to prove the position either way but we do seem to possess something unique that the rest of the world respects.