NHS rip-off in the spotlight

Britain’s Prince William criticized as a hypocrite

Prince William has been heavily criticized for his private income.

(Bild: APA Pool/AFP/POOL/Toby Melville)

King Charles and Prince William have been heavily criticized for their high private income from royal estates. Their dukedoms generated around 50 million pounds last year - including money from the financially troubled NHS health service and other state agencies. William in particular has been accused of hypocrisy.

He is not only the ceremonially crowned head of state of Great Britain. Charles III is also something like the king of landowners. The British monarch and his eldest son Prince William own huge tracts of land in the kingdom. This is made possible by tradition: the king receives the revenues from the Duchy of Lancaster, which was created in 1399, and the heir to the throne receives those from the Duchy of Cornwall, which has existed since 1337.

The lands and properties bring Charles, who celebrates his 76th birthday this Thursday, and William a lot of money every year. Research by the "Sunday Times" newspaper and Channel 4 revealed a total income of 50 million pounds (60 million euros) last year.

King Charles

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Millions from the ailing NHS
However, some items on the list caused quite a stir. Charles' Duchy of Lancaster will receive a total of 11.4 million pounds (13.76 million euros) over 15 years from an organization of the financially ailing NHS. This involves a warehouse in London where ambulances are stored.

The estates also receive money from the Ministry of Defense for access to moor boats and refuel warships, from state schools for the use of their land and from a local council for the operation of a toll bridge. There is also a prison on royal land, the multi-million pound lease paid for by the Ministry of Justice with taxpayers' money.

A spokesman for the Duchy of Cornwall told the BBC that it is "a private manager with a commercial aspiration". All British laws and regulatory requirements would be followed. The Duchy of Lancaster said it operated "as a commercial company managing a wide range of land and property assets in England and Wales".

Calls for reform
Critics have long called for a reform of how the royal estates and properties are taxed. Under an agreement with the Treasury, neither capital gains tax nor corporation tax is payable. The administrations also do not have to comply with property laws such as expropriation orders.

The king and heir to the throne voluntarily pay the highest income tax rate of 45 percent on their income. In the last tax return, it was revealed that Charles had paid 5.9 million pounds, which is 25 percent - he had deducted expenses that he felt were connected to his official duties.

Former MP for the House of Commons and now MP for the House of Lords, Margaret Hodge of the ruling Labour Party, told the BBC: "We all love the monarchy, we all want it to work. But we want it to lead by example in the way it manages its finances." The royal family cannot have it both ways, he said. "If they want to be private and commercial, they have to pay the fair rate of tax like everyone else, otherwise they get a competitive advantage," Hodge said.

Crown Estate and Sovereign Grant
Royal finances have always been a source of controversy. The public funding of official residences such as Buckingham Palace comes from revenue from the Crown Estate. This also owns large areas of land and valuable real estate, as well as the seabed in the British twelve-mile zone. The royal family receives a 25 percent share of the income from this property manager, known as the Sovereign Grant.

Prince William, King Charles and Princess Anne on British Remembrance Sunday

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In addition, there are private possessions: valuable horses, historic vehicles, the largest stamp collection in the world, masterpieces and shares. A huge part of the fortune consists of jewels, which were mainly collected by Charles' great-grandmother Queen Mary and which the King inherited from his mother Queen Elizabeth II without having to pay inheritance tax. This is all invaluable. Private liquidity is provided by the income of the Duchies.

Critics of the monarchy, such as the organization Republic, have long called for the royals to receive significantly less tax money and finance much more privately. This would be an important symbolic step, especially in times of tight public coffers.

William "milking" public services
In her column for "The Sunday Mail" newspaper, presenter Jean Johansson criticized Prince William in particular as a hypocrite. The 42-year-old has declared it his goal to end homelessness. But in fact, William is "milking" public services, which therefore have less money for those left behind (in society), Johansson emphasized. "How can it be that the whole nation is not outraged by this?" According to the presenter, the royals were lucky: the US election overshadowed the publication and there was no outcry.