A new and updated cost-benefit audit conducted by Brand Finance reveals that the Royal Family continues to make a positive financial impact on the United Kingdom’s economy, despite costs rising and benefits declining. The new analysis by Brand Finance considered all the estimated recurring costs and benefits to the United Kingdom.
Brand Finance estimates that the recurring benefits are £570 million in the 2023/24 financial year. Brand Finance estimates that the recurring costs are £370 million in the 2023/24 financial year.
Therefore, the net recurring benefit in the 2023/24 financial year is estimated to be £200 million. The various economic benefits to the United Kingdom, include Royal Warrants, Coats of Arms, Unofficial Endorsements, Patronage, Tourism, Trade, Media & Arts, Global Media Coverage, and Merchandise.
The various costs include the income distributed from the Crown Estate and Duchies, the notional value of free accommodation in Occupied Royal Palaces, the direct costs of security, and other assorted costs. It must be noted that much of these costs are spent on payments to staff (such as security staff) who participate in our economy – with such money substantially recycled throughout the broader British economy.
David Haigh, Chairman of Brand Finance, said: “Spread amongst the 67 million people of the United Kingdom, 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.” In addition to the recurring benefits and costs of the Monarchy, there are various non-recurring benefits costs in the year of the Coronation, the financial year ending 31 March 2024.
The non-recurring benefits and costs relate to just the Coronation year. Our analysis found that the non-recurring benefits will be £1,692 million, compared with non-recurring costs of £931 million, meaning that the Coronation year produces a net positive contribution of £761 million.
The primary costs in the 2023/24 financial year are £100 million estimated for the coronation itself, and £831 million estimated for the incremental bank holiday which reduces GDP. Although the Monarchy produces a net recurring benefit to the British economy, this net benefit is significantly lower than in the past, during the reign of Queen Elizabeth II.
This reduction is attributable to the significant positive effect of Queen Elizabeth II, together with a series of public relations disasters, including controversies surrounding Prince Andrew and Prince Harry, and the growth of republicanism. The King has said that he will slim down and reposition the Monarchy for a new era which will likely be received positively and help with the reinvigoration of the Monarchy brand.
David Haigh, Chairman of Brand Finance, said: “As King Charles is crowned, he faces the challenging task of adapting the Monarchy and making it relevant to a new and sceptical audience in a rapidly changing social and political landscape. Fortunately, there is strong evidence that the Monarchy continues to deliver a huge benefit to the UK economy.”
