The new financial scandal that is affecting Charles III

The new financial scandal that is affecting Charles III
The new financial scandal that is affecting Charles III

In the United Kingdom, an investigation – already renamed the “Duchy Files” – accuses Charles III and Prince William of enriching themselves at the expense of public services, via their duchies of Lancaster and Cornwall.

The smile of the Princess of Wales, returning to the Whithall balcony for Remembrance Sunday this November 10, did not completely make us forget the revelations published in the press a few days earlier. For almost six months, three media outlets – the “Sunday Times”, the “Daily Mirror” and the Channel 4 investigative show “Dispatches” – conducted a joint investigation to try to unravel the mystery of the opaque fortunes of members of the royal family. And more particularly that of the king and his heir.

A tax system pushed to excess

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At the heart of this state scandal, it is the duchies of Lancaster and Cornwall which are singled out. The first belongs to Charles III, the second to William. Both are governed by an old feudal law, never reformed for 800 years. The monarch and his son are the owners of the smallest piece of land and therefore receive numerous rents. Buildings, houses, parking lots… Nothing surprising so far.

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The investigation above all highlights a tax system pushed to excess, as for freight boats which must pay a small fee each time they cross a river. Two examples among others: the town halls of the Duchy of Lancaster must pay the king for the right to dig graves in cemeteries. The army must pay rent to William to be able to train on land in the Duchy of Cornwall.

Public services scam?

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This is where the problem lies. The royal family is accused of enriching itself at the expense of public services, notably the National Health Service (NHS). However, the United Kingdom's public health system is currently in crisis, after being neglected for years. It is considered the country's first problem by 41% of the population, ahead of the economy, immigration and housing, according to an Ipsos poll published in mid-June at the time of the elections. The “Duchy Files” however reveal that the NHS pays rent of almost 1 million euros to the king each year. Scandal!

Same thing with various associations sponsored by active members of the Windsors who donate part of what they collect to the two duchies as rent.

An opaque fortune

All the more intolerable since neither Charles nor William pay taxes on the profits of their “companies”. But let us remember that since 1993, the monarch and his family have no longer been exempt from taxes on their personal wealth.

Since 1760 and the reign of George III, most of the kingdom's territories have come under the control of the “Crown Estate”. The annual revenues of this entity are returned at 15% to the Windsors in the form of “royal annuity”. This will amount to 132 million pounds next year.

But why didn't the duchies of Lancaster and Cornwall fall into the “Crown Estate”? Because in the 18th century, at the time of this little revolution, they brought in absolutely nothing. While today, they are valued at around 1.8 billion pounds (2.16 billion euros) and have reaped around 50 million pounds in profits in 2023.

If Buckingham is required to publish his expenses and income each year, the monarch's private funds remain at his discretion.

One scandal among others

The revelations of the “Duchy Files” obviously provoked the indignation of several political leaders. Starting with Graham Smith, leader of the anti-monarchist group “Republic”, who cried: “Duchies seek profit wherever they can, to the detriment of the public”. MPs have called for Parliament to study the possibility of integrating the Duchies of Cornwall and Lancaster into the Crown Estate.

The question now comes back like an old refrain: can this scandal shake the monarchical institution? Already last year, the “Guardian” revealed that the Duchy of Lancaster was profiting from the property of people who died without a will or without close relatives. Although the duchy ensured that this money was redistributed to associations, it ultimately kept a major part of it.

All these practices are not unknown to initiates, but today seem more than dated. The monarchy – like all institutions – must learn to reform itself over time.

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