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Brand Finance finds the Monarchy will deliver a £958 million economic benefit to the UK this year

06 May 2023
This article is more than 1 year old.

A new and updated cost-benefit audit conducted by Brand Finance reveals that the Royal Family continues to make a positive financial impact on the United Kingdom’s economy, despite costs rising and benefits declining.

The new analysis by Brand Finance considered all the estimated costs and benefits to the United Kingdom, and divided these between recurring and non-recurring impacts. The non-recurring impacts are the one-off costs and benefits related to special events such as the Coronation of King Charles III.

Brand Finance found that the non-recurring benefits will be £1,692 million, compared with non-recurring costs of £931 million, meaning that the Coronation year produces a net positive non-recurring contribution of £761 million. The primary costs in the 2023/24 financial year are £100 million estimated for the coronation itself, and £831 million estimated for the incremental bank holiday which reduces GDP.

In addition to the one-off net benefit of £761 million for the Coronation year, Brand Finance also considered all the estimated recurring costs and benefits to the United Kingdom. Brand Finance estimates that the recurring benefits are £567 million in the 2023/24 financial year. Brand Finance estimates that the recurring costs are £370 million in the 2023/24 financial year. Therefore, the net recurring benefit in the 2023/24 financial year is estimated to be £197 million, giving a total benefit of £958 million.

The various economic benefits to the United Kingdom, include Royal Warrants, Coats of Arms, Unofficial Endorsements, Patronage, Tourism, Trade, Media & Arts, Global Media Coverage, and Merchandise. The various costs include the income distributed from the Crown Estate and Duchies, the notional value of free accommodation in Occupied Royal Palaces, the direct costs of security, and other assorted costs. It must be noted that much of these costs are spent on payments to staff (such as security staff) who participate in our economy – with such money substantially recycled throughout the broader British economy.

David Haigh, Chairman of Brand Finance, said:

“Spread amongst the 67 million people of the United Kingdom, the recurring financial benefits of the Monarchy are estimated to be over £8.50 per person, per year, and the recurring costs are estimated to be approximately £5.50 per person, per year.”

Although the Monarchy produces a net recurring benefit to the British economy, this net benefit is significantly lower than in the past, during the reign of Queen Elizabeth II. This reduction is attributable to the significant positive effect of Queen Elizabeth II, together with a series of public relations disasters, including controversies surrounding Prince Andrew and Prince Harry, and the growth of republicanism. The King has said that he will slim down and reposition the Monarchy for a new era which will likely be received positively and help with the reinvigoration of the Monarchy brand.

David Haigh, Chairman of Brand Finance, said:

“As King Charles is crowned, he faces the challenging task of adapting the Monarchy and making it relevant to a new and sceptical audience in a rapidly changing social and political landscape. Fortunately, there is strong evidence that the Monarchy continues to deliver a huge benefit to the UK economy.”


Note: David Haigh will be available for commentary on the financial aspects of the Monarchy on Saturday 6 May at the Foreign Press Association in London.

Source Documents

Media Contacts

Penny Erricker
Communications Executive
Brand Finance

About Brand Finance

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.


Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.

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