What the Royal Family Costs U.K. Taxpayers and How It’s Spent | WSJ

- [Narrator] King Charles III is the UK's new head of state and head of the royal family. He's basically the CEO of the British monarchy, and he has said that one of his priorities is to bring down running costs. Last year, the monarchy cost the government roughly 102 million pounds, the equivalent of $117 million according to the palace's annual financial report.

So, here's what we know about where that money comes from and how it's spent. - I take this opportunity to continue the tradition of surrendering the hereditary revenues, including the crown estate to my government for the benefit of all. - [Narrator] The cost of carrying out official duties comes from something called the sovereign grant.

Here's how that works. In the 1700s, the monarchy handed over revenues from swathes of land known as the crown estate to the government. These days, the crown estate makes money on a range of assets from retail property to golf courses and even offshore wind farms.

And every year the government pays a percentage of the profits made on those assets back to the monarchy. Last year, it totaled $99. 6 million.

In addition to their vast private wealth and income from investments, which are not included here, the monarchy also received $11. 4 million from royal palace admissions and rental properties. This slice of income is used to supplement the grant.

But last year, the monarchy also tapped a reserve of grant money from past years to meet its spending needs. So, where did that money go? The bulk of this spending goes on the monarch's operating costs, official travel, and property maintenance.

In total, more than $3 million was spent last year on helicopter trips and journeys on the royal train. And 10 times more than that was used to employ about 1,000 people, from footmen to florists, who make up the royal household, headquartered at Buckingham Palace. The palace itself has high running costs, and money spent on renovating it rose 41% from the previous year.

A 10-year project to refurbish Buckingham Palace is forecast to cost around $426 million according to the last financial report. And there are costs we don't know. Some royal watchers say the bill is higher than stated because of the costs of police protection for the family, and the cost of the queen's funeral couldn't immediately be determined.

- [Protesters] Freeze profits, not people. - [Narrator] How this money is spent is particularly pertinent at a time when people are voicing concerns about soaring energy bills, and inflation in the UK is at its highest in 40 years. - Her Majesty's government's priority is to grow and strengthen the economy and help ease the cost of living for families.

- [Narrator] $117 million of taxpayer money works out at about $1. 73 or £1. 50 per UK citizen.

King Charles seemingly wants it to be even less than that. Demonstrating that the monarchy is good value for money is more difficult in tougher economic times, and Charles' plans are part of a careful balancing act deftly performed by his mother for 70 years. Now, it's his turn to walk that tight rope.