How much does the monarchy cost the taxpayer — and is it worth it?

A year has passed since Queen Elizabeth II’s 70-year reign came to an end. After a period of national mourning, her death raised profound questions about the place of the monarchy in 21st-century Britain.

A slew of scandals had been rocking the boat – from Prince Andrew’s association with convicted sex offender Jeffrey Epstein to accusations of racism within the Firm by Prince Harry and Meghan Markle.

The cost-of-living crisis in 2022 turned the question towards money: How could we justify royal palaces and pageantry when regular households up and down the country couldn’t afford their energy bills?

With an unprecedentedly expensive funeral for the late Queen and a lavish coronation for King Charles III, the monarchy’s price tag has been debated throughout the year since.

Express.co.uk breaks down the numbers to try and answer the question: Is it worth it?

The Crown Estate is a vast portfolio of land, properties, venues and other holdings dotted around the UK, worth a total of £16billion as of mid-2023.

These assets – which include London’s Regent Street, Ascot Racecourse and 287,000 acres of agricultural land and forests – are neither private nor public, but belong, on paper, to whoever is sitting on the British throne.

The Crown Estate generated a record £443million in net revenue during the 2022 to 2023 financial year. Back in 1760, King George III agreed to sacrifice this income in exchange for a fixed annual percentage in order to remain on the throne.

Since 2017, this Sovereign Grant, as it’s known, has been set at 25 percent of the profits – up from 15 percent initially. In practice, last year, this meant the Treasury parted with £86.3million.

The past year’s total includes a core grant of £51.8million and an additional £34.5million towards the ongoing refurbishment of Buckingham Palace. The total is equivalent to £1.29 per UK resident.

Upon releasing the Royal Household’s latest report, Keeper of the Privy Purse Sir Michael Stevens, said: “Like other organisations, the Royal Household has not been immune to the impacts of the joint challenges of the pandemic and inflationary pressures, which have resulted in a flat Sovereign Grant.” He went on to confirm it would remain the same for the current financial year as well.

The Firm’s taxpayer-funded income is supplemented by income from the King and heir’s private property portfolios – the Duchies of Lancaster and Cornwall respectively – as well as a vast collection of art and jewellery.

Most of the Sovereign Grant goes towards property maintenance, staff payroll, travel and lodging and hosting events for visiting dignitaries. On occasions of national importance, however, exceptional amounts have been drawn from HMRC’s coffers.

Earlier this year, the Government revealed the Queen’s funeral last September cost a staggering £161.7million. This figure includes the bill associated with her six-day lying in state in Westminster Hall – during which some 250,000 mourners are said to have filed past the coffin – as well as the funeral procession and service, which included some 2,000 foreign leaders and royalty.

The Coronation of King Charles III this May, while “slimmed-down” from his mother’s accession ceremony back in 1953, still reportedly cost up to £100million – with the Metropolitan Police’s extensive security operation on the day playing a large part.

Advocates say revenue from increased tourism and the international TV rights to royal ceremonies more than recoup the monarchy’s cost to the economy.

According to Brand Finance, the “world’s leading brand valuation consultancy” according to their site, the Royal Family is set to bring in just under £2.3billion to the UK over the course of this financial year. This includes one-off boosts from the Coronation and recurring yearly benefits.

With costs running up to £1.3billion, the firm claims the monarchy is set to earn the country £958million until March 2024.

Chairman David Haigh said: “Spread amongst the 67 million people of the UK, the recurring financial benefits of the monarchy are estimated to be over £8.50 per person, per year, and the recurring costs are estimated to be approximately £5.50 per person, per year.”

This math is disputed, however, notably by the anti-royalist group Republic. They claim that when factoring in the cost to local councils, police forces and security costs, the Royal Family actually leaves the country £345million out-of-pocket each year. 

CEO Graham Smith said: “This year we have also had the huge cost of the funeral and the £250m inheritance tax bill Charles has avoided.”

The Royal Household’s annual report also laid out the work Family members had undertaken – over 2,700 engagements across the UKand overseas, over 95,000 guests welcomed to Official Residences and over 330 receptions, investitures and garden parties.

According to the results of a recent Express.co.uk survey, most readers tend to think they earn their keep.

In a poll that ran from July 4 to 7, Express.co.uk asked readers: “Is the Royal Family value for money?” With over 2,600 responses, 82 percent said yes.

YouGov polling conducted ahead of King Charles III’s first anniversary as monarch suggests 62 percent of Britons believe the UK ought to continue to have a monarchy.