There are only two ways: taxation or plunder
In modern monarchies it’s tricky. The sovereign can no longer send soldiers from town to town to extract funds and, since the end of empire, the plunder route is basically closed off too. In Britain no one pays tax directly to the monarch any more. But many of us do pay rent…
Britain is home to one of the most important monarchies in the world. A big operation with branch offices all over the kingdom and in dozens of other countries that retain affiliate status.
The options for monarchies in the modern period have been limited. They’ve either disappeared all together, withered to an essentially showbiz function or – in a few important cases – retained their absolute power. In the Gulf states, for instance, the royals still run the show. When you’re executed in Saudi Arabia you’re executed by the king. No arguments.
In Britain, though, we have a kind of hybrid situation. The monarch has limited powers under the constitution but huge prominence and a large, although quite ill-defined official role. Right now, Britain’s sovereign is well into his seventies and he’s not been well. Although you might expect him to have chosen a quiet retirement over a full-time job, he’s actually more-or-less constantly on the road, providing figurehead duties and walking along lines of fenced-in royalists seeking cures and indulgences.
Britain’s is considered to be a relatively modern monarchy. It hasn’t blocked a law in the parliament for over 300 years, showing up politely to open new sessions and taking an essentially deferential public stance towards whoever currently controls the executive. But there’s a tension. The British monarch holds various powers in reserve and there are several privileged back-channels connecting the monarch with government. The head of government is obliged to travel to Buckingham Palace for weekly meetings, for instance, and, remarkably, there’s a full cabinet member whose job it is to safeguard one of the sovereign’s historic estates. This awkward balance is said to be what’s most precious about the British crown-constitutional settlement, the arrangement that guaranteed peace in Britain across the centuries while Europe was roiled by revolution and unrest. But it’s assumed that, were a sufficiently radical government to come to power – perhaps one elected on a republican mandate – the monarchy would be less quiescent, more engaged. In ordinary circumstances, though, the king agrees to stay in his lane.
But the trade-off is a costly one. The British monarchy stands back from the polity – the senior royals have accepted the somewhat humiliating role of constitutional zoo animals (they must smile and wave and never lash out in public) – in exchange for essentially unlimited wealth. It’s not a bad deal. The king is one of the wealthiest men in Britain. Likewise his immediate family. His children and their children will want for nothing and will enjoy cosseted, globetrotting millionaire status for life, whether they choose to get involved with the firm’s official business or not. There are men and women in the royal orbit – people none of us have even heard of – who are millionaires because of this clever settlement with the state. Even errant family members are promised accommodation for life provided they STFU and toe the line.
The present British monarchy, installed on the death of Queen Victoria – the House of Saxe-Coburg and Gotha (renamed Windsor once being German became an issue) – has had its ups and downs. The Nazi thing, the divorcee (who was also a Nazi), the uncooperative Sloane ranger, the one accused of sexual abuse and so on. The long reign of Queen Elizabeth II is said by everyone to have largely restored the institution’s reputation but, crucially, also shored it up against future crises. What she achieved, in that record-breaking 70-year period, was to provide a platform for her family – and for her successor King Charles III – to operate freely.
As a result, the present king, brought up in extreme luxury, isolated from ordinary people and indulged since childhood, has a degree of freedom to operate that few of his modern predecessors could claim. His entrepreneurial activity is diverse – both in business and in his official role. He’s able to intervene in nationally-important matters – from sustainability to urban planning to youth unemployment. Many thought that his ascent to the throne would in some way limit his activity beyond the wearing of the big crown, launching ships and so on. They were wrong. King Charles III is an engaged sovereign, a head of state unafraid to get his oar in.
All this activity is, of course, expensive. And the official sources of income are under pressure – from public scrutiny, from obligations to comply with legal and financial norms and from tightening budgets. So we shouldn’t be surprised to learn that the king and his eldest son, Prince William, have been developing an additional source of income – previously undeclared – from property owned directly by the two estates they control – the Duchy of Cornwall and the Duchy of Lancaster. There’s no need to provide the detail here (read the story). It’s what you’d expect. Monarchs gonna monarch. But The Times, historically the newspaper of record and the paper thought by the British establishment to be essentially their own, has done some first-class digging and found hundreds of secret leases, adding up to millions of pounds per year of income for father and son (and all with no capital gains tax or corporation tax to pay).
Every monarchy on earth derives its income principally from land (or what’s under it). The king and the prince own land on which a prison, various Royal Navy boatyards, windfarms, the Mersey ferry, NHS hospitals, a scout hut, a mine, pubs, fire stations and a motorway service station are located. We learn from the report that they also own ancient title to various riverbeds, beaches and foreshores and that they claim fees from those who want to cross them or build on them or even moor boats in the water above them – literally the definition of unproductive, rentier behaviour, right? Anyway, it’s powerful new evidence of the parasitic hold that even a modern, constitutional monarchy must have over the nation to which it has attached itself if it is to prosper. And this one is certainly prospering.
- Tom Nairn’s Enchanted Glass is the best book about the British crown-constitutional settlement as ‘symbol of a national backwardness’.
- I’ve written about monarchy here before.
