The pandemic and the resulting shortage of tourists however has left a US$45 million hole in the royal household’s annual accounts, according to the Keeper of the Privy Purse, Michael Stevens. That smarts even more when the fall in income – mainly from visitors paying to get a look inside royal palaces and buildings – is set to be repeated in this year’s accounts.

That sounds more like upcycling to us, but the point is clear. Money is not wasted. Maybe the adage about looking after the pennies – and the pounds looking after themselves – rings true after all.

Hold the violins for now, however. Her majesty isn’t emptying the piggy bank quite yet. But the question that intrigues us most is what does she spend it on?

Receiving foreign dignitaries and heads of state

The Sovereign Grant enables the queen to carry out her duties as head of state by meeting the central staff costs and running expenses of her majesty’s official household. Those Buckingham Palace garden parties and official receptions for heads of state, prime ministers and presidents don’t come cheap, after all, racking up costs of US$3.7 million for housekeeping and hospitality.

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Pens, paper, food, wine and other everyday items

Much of the money spent on food and drink falls under housekeeping and hospitality in the royal accounts. That is because events are held across the royal family’s property portfolio. The Master of the Household’s department reportedly hosted 240 receptions in the financial year 2018 to 2019, as well as 158 lunches, nine garden parties and 75 dinners at Buckingham Palace, Windsor Castle, St James’s Palace and the Palace of Holyroodhouse. While the income from tourists may have shrunk, we also expect this expenditure would have gone down in 2020.

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Among other interesting expenses that fall under this entry is US$1.55 million spent on printing, postage and stationery, as well as US$848,000 on cleaning and laundry, and a further US$565,000 on wine and spirits. That is a lot of letter writing!

Planes, trains and automobiles

The Sovereign Grant also covers the queen’s travel on official engagements, as well as travel by members of the royal family who are representing her. She has been known to take scheduled train services – yes, public transport – but she also uses the Royal Train for longer journeys in the UK. 

Back in December 2020, Daily Express outlined some specific travel costs from the US$7.5 million pot.

Upkeep of all the palaces

Another major expense comes with upkeep of all those palaces, with an ongoing project at Buckingham Palace alone costing more than US$28 million over a number of years.

Security

One expenditure not disclosed however – with very good reason – is security costs, lest doing so compromises the safety of those being individuals protected. 

All told, it adds up to a serious chunk of change. But monarchists will happily remind you of the estimated net annual contribution to Britain’s economy by her majesty and her family – a cool US$2.7 billion annually before the pandemic, according to Forbes. More than enough, one would think, to move on from ripped up newspaper for horse bedding.

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