How the British royal family makes money | Vox

Unraveling the Finances of the British Royal Family: A Deep Dive into Wealth Sources and Financial Independence

In the opulent world of the British royal family, the glittering façade often obscures the intricacies of their wealth. Beyond the grandeur of Buckingham Palace and Windsor Castle lies a financial tapestry woven with historic properties, private estates, and taxpayer-funded grants. Let’s delve into the nuances of their financial structure and the recent seismic shift triggered by Prince Harry and Meghan Markle’s pursuit of financial independence.

British Royal Family’s Wealth Sources

1. Iconic Real Estate and Historic Properties
   • The royal family’s wealth emanates from a diverse portfolio, encompassing iconic real estate and historic properties.
   • Balmoral Castle and Savoy Chapel, inherited from Queen Victoria, constitute part of the Queen’s private wealth.
2. Duchies: Duchy of Lancaster and Duchy of Cornwall
   • Duchies, including the ancient Duchy of Lancaster and expansive Duchy of Cornwall, significantly contribute to private income.
   • Profits from the Duchy of Cornwall flow to Prince Charles, with a portion benefiting his sons, William and Harry.

Queen’s Net Worth

• The estimated net worth of the Queen, the wealthiest royal family member, stands at a staggering $370 million pounds.

Crown Estate and Sovereign Grant

1. The Crown Estate
   • The Crown Estate, comprising landmarks like Windsor Castle and Buckingham Palace, is valued in billions but doesn’t directly augment the Queen’s personal wealth.
2. Sovereign Grant
   • Instituted in the 18th century, the sovereign grant provides taxpayer money in exchange for the royals relinquishing personal lands.
   • Between 2018 and 2019, the sovereign grant accounted for about 80 million pounds, constituting 5% of Harry and Meghan’s income.

Financial Model and Independence

• Working royals primarily derive income from real estate portfolios, barred from having private income sources.
• Prince Harry and Meghan Markle’s pursuit of financial independence involves relinquishing taxpayer funding and restrictions on royal duties.
• Their financial arsenal includes private wealth, Meghan’s acting career, and inheritance from Princess Diana, raising concerns about capitalizing on the monarchy through external partnerships.

Impact on Monarchy

1. SussexRoyal: A New Brand
   • There’s a palpable fear that Harry and Meghan’s independent brand, SussexRoyal, might overshadow the traditional British royal brand.
   • Discussions about the monarchy’s future underscore the need to address unresolved issues within the royal family.
2. Flexibility in Financial Approaches
   • The situation prompts a call for flexibility in how royals make a living, challenging the traditional financial model that has been in place for centuries.

In Conclusion

In unraveling the finances of the British royal family, we discover a complex interplay of historic legacies, taxpayer support, and evolving aspirations. The quest for financial independence by Prince Harry and Meghan Markle not only shakes the foundations of tradition but also forces a reevaluation of the monarchy’s financial model. As we gaze into the uncertain future, the royal family faces the challenge of balancing tradition with the demands of a modern world.