Advertisement

British royal family is worth more than £60bn, finds new report

According to Brand Finance, the royal family provides an increase to the media industry of around £50m a year: Alastair Grant - WPA Pool/Getty Images
According to Brand Finance, the royal family provides an increase to the media industry of around £50m a year: Alastair Grant - WPA Pool/Getty Images

Britain’s royal family is worth is worth more than £60bn and contributes nearly £1.8bn to the UK economy each year, according to new research.

Brand Finance, a business valuation consultancy, calculated the royal family was worth £67.5bn in its report. It made the calculation by tallying up not just concrete assets but also the less easily quantifiable impact of their brand.

While their tangible properties, such as Buckingham Palace, the Royal Collection of art, or the Crown Jewels, are estimated to be worth £25.5bn in total, the report claims the majority of the monarchy's revenue comes from its brand.

According to the report, the other £42bn comes from the value of the benefits the royal family brings to the economy. This include the impact on tourism which is an estimated £550m a year. The increase to trade is said to be £150m a year due to the work carried out by members of the royal family representing Britain overseas.

The piece of research estimates royal warrant holders, such as the brands Aston Martin, Fortnum & Mason and Prestat chocolates, reap the benefits of more than £190 million a year from their royal connections, especially overseas.

It also estimated informal endorsements – an example being outfits worn by the Duchess of Cambridge which become popular - are worth £200m.

According to Brand Finance, the royal family provides an increase to the media industry of around £50m a year, saying: “The mystique surrounding the monarchy adds to the popularity of shows like The Crown and Victoria that offer a glimpse of the private lives of the royal family".

According to the report, the total annual cost of the monarchy to the taxpayer is £292m.

Republic, an anti-monarchy pressure group, challenge the view that Britain’s monarchy are good for tourism.

“This claim is untrue and irrelevant. Even VisitBritain, our national tourist agency, can't find any evidence for it,” they say on their website. “Chester Zoo, Stonehenge and the Roman Baths are all more successful tourist attractions than Windsor Castle, which is the only occupied royal residence to attract visitors in large numbers.”

“Research shows that tourists come here for our world class museums, beautiful scenery, fantastic shopping and captivating history - not because they might catch a glimpse of Prince Andrew,” it continues.

Republic estimates the royal family’s cost of security at £106m and calculate that £30m goes on the buildings used by the royal family. On top of this, they say royal visits cost local councils an estimated £22m a year.

“The royal family's security bill is picked up by the metropolitan police, for example, while the costs of royal visits are borne by local councils,” the site reads.

“Meanwhile, income from the Duchy of Lancaster and the Duchy of Cornwall – despite belonging to the nation - goes directly to the Queen and Prince Charles respectively, depriving the treasury of tens of millions of pounds every year.”

“When all this hidden expenditure is included, the real cost of the monarchy to British taxpayers is likely to be around £345m annually,” it concludes.

The Queen's estate was recently identified in reporting from the Paradise Papers among companies controversially but legally utilising offshore accounts to hold assets.