Monarchy’s funding recalculated after boost to Crown Estate’s revenue from wind farm deals
The Sovereign Grant – which is used to fund the monarchy’s official duties – will make up just 12 per cent of the Crown Estate’s net profits next year, down from 25 per cent, the Treasury has announced.
The change has been introduced following a significant boost in the Crown Estate’s profits from offshore wind deals.
The Treasury said the Royal Household’s budget will be £24m lower next year and £130m lower in both 2025 and 2026, than if the rate remained at 25 per cent.
The total Sovereign Grant for 2024/25 will remain flat at £86.3m.
The King asked in January for the wind farm profits to be used for the wider public good instead of funding royals.
The reduction came out of a review by Royal Trustees, which was published on Thursday, and which sets out the new proportion of the Crown Estate’s net profits used to calculate the amount of government funding to support the King.
Prime Minister Rishi Sunak, Chancellor Jeremy Hunt and keeper of the privy purse Sir Michael Stevens are the royal trustees.
The Treasury said: “Cutting the rate to 12 per cent is expected to reduce the Sovereign Grant by £24m in 2024/25, compared with the rate staying at 25 per cent, and over £130m lower in each of 2025 and 2026.
“This money will instead be used to fund vital public services, for the benefit of the nation.”
By Laura Elston, PA Court Reporter