The Monarchy: Does it benefit Britain's economy?

Valued at £67bn, The Monarchy is Britain’s greatest treasure (Jagodzinski & Pannu). Brand Finance estimates that in 2017, The Monarchy's annual contribution to the UK's economy was £1.766bn (Jagodzinski & Pannu). The contribution includes the Crown Estate’s surplus, which supplied £343.5million in 2018/19 (Bosley), as well as The Royal Family’s indirect influence on various industries. During the course of this essay, I will discuss to what extent The Royal Family benefits the UK's economy, and whether it is economically worthwhile to have a monarch.

Firstly, Royal Patronages, including Royal Ascot and Royal Opera House, greatly benefit the UK’s economy. Ascot Racecourse is part of the Crown Estate, a property business owned by The Monarch but run independently, and The Royal Family regularly attends horse-racing events at Royal Ascot. The Royal Family's interest in horse-racing attracts many members of the public to Ascot Racecourse. Consequently, Ascot Racecourse generates millions of pounds each year, with £68million spent in 2013 on offcourse expenditure by the public (Gibbs). Having a Royal patron or president provides vital publicity for the work of these organisations and allows their achievements and contributions to society to be recognised. Therefore, Royal Patronages greatly benefit the UK's economy.

Furthermore, many royal events that take place are often broadcasted, which has provided several benefits for the UK’s economy in the past and will continue to in the future. When the Duke and Duchess of Cambridge were wed, not only did half of the UK watch some of the wedding’s coverage, but several millions of people around the world watched too. The wedding was livestreamed seventy-two million times on YouTube, in over one hundred eighty-eight countries (Gibbs), which totals to more than two billion people globally (Haven- Tang). The added value to Britain's 'brand' due to global media coverage is worth approximately £1bn (Haven-Tang), although the cost of the wedding was only just over £27million (Raphael). This demonstrates how influential the young royals have been for both the public and The Monarchy’s image. Richard Fitzwilliams, royal commentator, told Consumer News and Business Channel, “The colourful ceremonial of The Monarchy with links to the past, royal anniversaries, weddings and state visits, is much loved by the public as it attracts both national and international attention" (Gibbs). In total, the UK's economy benefited from £107 million profit from Prince William's and Princess Kate's wedding (Wood). On the other hand, the news broadcasted about The Royal Family can also be infamous, such as The Duke and Duchess' move to California. However, the majority of news broadcasted about The Royal Family is positive and provides benefits to the UK's economy.

Additionally, the majority of The Royal Family’s members are involved with charitable organisations. For example, The Prince of Wales has been involved in charitable events for over 35 years and is estimated to have raised £100million annually to his causes (Gibbs). In 1979, he founded ‘The Prince of Wales’s Charitable Foundation’, one of the UK’s largest independent foundations, while his charitable work also encompasses the United States, Australia, and multiple countries in South Asia. The charity founded by the Prince of Wales supports the built environment, responsible business and enterprise, young education, and global sustainability. In addition, The Duke of Edinburgh's Award, founded by Prince Phillip, works to increase opportunities for young people to develop essential life skills by doing their Duke of Edinburgh Award. In total, around three thousand charities have been established with the help of members of The Royal Family, with The Queen herself showing support for more than six hundred.

Moreover, The Royal Warrant also benefits the UK’s economy. Having a Royal Warrant makes a great marketing tool domestically and abroad. There are currently around eight-hundred holders of the Royal Warrant (Smith), ranging from individual craftsmen to giant companies like Aston Martin and Fortnum and Mason. The Queen is great for branding, as she remains one of the strongest symbols of the UK for the rest of the world, instantly conveying its tradition and history. Her Majesty is a great fashion inspiration and seen as an idol to some, and the majority of The Queen’s dresses inspire members of the public to buy the same dress. Many get their inspiration for fashion and home style from The Queen and The Royal Family. If a dress is worn by royalty, it increases the chances of consumers purchasing the same dress by 47% (Smith). After the birth of Princess Charlotte, the UK’s Centre for Retail Research estimated it would trigger not only a short term boost of £80million for the economy, but the fact that Kate gave birth to a girl, could be crucial to the UK’s fashion and retail sales in the long term (Gibbs).

Unsurprisingly, the largest benefit provided by The Royal Family is the tourism attracted from all around the world. The Royals are intrinsically linked with the UK’s international image and most tourists plan a visit to one of the many iconic properties owned by The Royal Family. More than 60% of overseas visitors who come to Britain visit places associated with The Royal Family. VisitBritain says that visits to royal landmarks such as Buckingham Palace and Windsor Castle adds up to 2.7 million visitors a year (Euronews.travel). Visitors to the UK who are drawn in by British culture and heritage, spend in the region of £4.5bn annually, with profits over £485 million (euronews.travel). Approximately, £500 million of the total sum is attributed to attractions and events connected to The Royal Family, from the past and the present. The UK's Association of Leading Visitor Attractions claimed that at Prince William and Princess Kate’s wedding in 2011, an additional 600,000 people visited London for the weekend, and spent more than £107million on that weekend alone (Haven-Tang). Tourism Manager said William and Kate brought priceless publicity and some tourism businesses reported a 20% in business in 2011 (Haven-Tang).

On the other hand, The Monarchy has sometimes been described as an expensive institution, with royal finances shrouded in confusion and secrecy. In reality, The Royals are committed to ensuring that money is spent as wisely and efficiently as possible, and to making royal finances as transparent and comprehensible as possible. The Queen is given a single payment by the government every year called the Sovereign Grant. Last year this was set at £85.9million, which is the equivalent of £1.29 per person in the UK (Edgington). This money comes from UK taxpayers, although The Royal Family themselves do not pay taxes. This is often seen as unfair, unjust and a waste of money. Some think that The Royal Family is prodigal, and the money would be more useful and meaningful elsewhere.

In conclusion, The Monarchy benefits the UK's economy to a certain extent due to the impacts on various industries that The Royal Family influences, including Royal Patronages; news and broadcasting; charities; The Royal Warrant; and tourism. In opposition, The Monarchy does provide additional costs to the UK's taxpayers, which can be prodigal and unjust as The Royal Family themselves do not pay taxes. Overall, The Royal Family is commensurately innocuous, and provides numerous benefits to the UK's economy.