Royal

King Charles’s Bold Move Triggers Royal Funding Cut

In a groundbreaking move, King Charles III’s call for windfarm profits to benefit the “wider public good” has led to significant consequences for the royal family’s funding.

The British government has decided to cut the proportion of funds allocated to the Firm from the Crown Estate, a property portfolio independently run with profits going to the Treasury.

The funding reduction, revealed in a review by the royal trustees, will see that the sovereign grant, meant to support the Firm’s official duties, will be reduced to 12% of the Crown Estate’s net profits next year.

This decision will significantly impact the Royal Household’s budget, with £24 million lower in 2024 and £130 million more down in the following two years.

Previously, the sovereign grant was worth £86.3 million ($111 million), typically based on 15% of Crown Estate profits, but temporarily increased to 25% for extensive refurbishment at Buckingham Palace.

However, new deals for offshore wind farms are expected to surge the Estate’s profits by £900 million a year, leading to a shift in funding allocation.

The move comes after overhauling the royal family’s financing system in 2011, linking royal funding to Crown Estate profits, replacing a fixed annual expenditure.

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