What would we think if a government minister were to use his or her custodianship of public assets to generate profits which were then paid directly into their bank account? Even in today’s jaded politics I’m certain this would invoke howls of outrage.
And what if it was then discovered that members of parliament were determined to defend the practice and refused to scrutinise what had been going on? Couldn’t happen, surely.
Yet this exactly what happens in today’s Britain were the head of state uses public assets for private aggrandisement. King Charles III is by virtue of his office also the Duke of Lancaster. The Duchy of Lancaster is not a place but a massive commercial operation holding land, property and investments worth £700m. Last year it generated over £27m profit – all of which went to the King’s personal account. Nice work if you can get it.
This is important because whilst the Duchy runs like a private estate, it is most definitely a state asset. As the recent report “Ditch the Duchies” by the campaign group Republic shows the Duchy hasn’t been private property since at least 1461 when the English King Edward IV passed a law “confiscating the Duchy of Lancaster to the Crown of England for ever”.
Plenty of subsequent laws make it clear the Duchy is a crown asset not the personal possession of the Windsor family. Indeed, it is described as such in the current Royal Tax Memorandum (an agreement between the Treasury and the Royals) in 2023. This is why the King cannot sell any of part of the Duchy – it doesn’t belong to him.
It’s also why not a penny of corporation tax was paid on the whacking profits the duchy makes every year. It is exempted as a crown asset. An almost identical arrangement is in place for Prince William with the Duchy of Cornwall (again the name is misleading as most its land is in Devon). He gets slightly less in profits in his bank account – just £23m last year.
These financial arrangements look even worse when two other things are considered. Firstly, the beneficiaries of this provision are already phenomenally wealthy. King Charles if one of the richest people in the world with a personal fortune estimated at over two billion pounds. It’s not as if he needs the money.
Secondly the King and other royals already receive a small fortune every year from the taxpayer. This is called the Sovereign Grant – £86 million last year. In another act of accounting sophistry monarchists will argue that this money comes from revenues raised by the Crown Estates and since there’s a good deal left over the royals actually make the country a profit. This is palpable nonsense. The Crown Estates are most definitely public rather than private assets.
Does all this matter? Well, a bit. In a country where we are told there’s not enough money to cover welfare payments for disabled people or end the cap on support for the poorest families, it is a bit shocking that our taxes are used to keep one family in such lavish opulence.
But this is not just about the money. The confusing and deliberately opaque picture that emerges from royal funding is bad enough. What is worse is the obfuscation and deceit practised by elected politicians to keep it that way.
One of the unintended consequences of last year’s election is that a bunch of SNP representatives who were recalcitrant if not critical when it came to taxpayer funding of the royals have been replaced by Labour ones who for the most part can’t tug their forelocks hard enough. In what looks like standard response from Labour head office they have been telling constituents that the Duchies of Lancaster and Cornwall are private institutions “responsible for their own commercial activities” whilst they are also “Crown bodies subject to Crown exemption”. They can’t be both.
For too long all Westminster parties have colluded in preventing scrutiny of the royal finances, giving them all the benefits of a private corporation without any of the social obligation to pay income, corporation or inheritance taxes.
If there is a glimmer of hope in all of this, it is that the public seem increasingly disinclined to practice supine deference to the aristocratic masters. As opinion polls show increasing support for abolition of the monarchy, the royals themselves face public protests at their carefully stage-managed events.
Last week’s Republic protest at Commonwealth Day offered a taste of what is to come in the year ahead. The Palace must be wondering whether there’s really much to be gained by association with the Commonwealth. After all, three quarters of Commonwealth have ditched the monarchy and are now republics, and more are planning to follow suit.
To my mind the monarchy is intertwined with the British state and so its abolition goes hand in hand with secession from the union. But not everyone who Scotland’s independence agrees so I see no need to make republicanism a pre-condition for our campaign.
I am confident though that as support for abolition rises the realisation that independence offers that possibility will be a winning component in our campaign.