(ABC News) - Public funds going to the British royal family are expected to be cut as new deals for offshore wind farms are expected to increase Crown Estate profits by 900 million pounds ($1.7 billion) a year.
Key points:
- The Sovereign Grant is managed by the Crown Estate, a property portfolio
- It was temporarily using 25 per cent of Crown Estate profits to cover palace renovations
- The grant will be cut to 12 per cent next year despite profits expected to surge
The Sovereign Grant, which covers the costs of running the royal households and official travel expenses, will be reduced by roughly half.
It is managed by the Crown Estate, a property portfolio belonging to the monarchy but independently run with its profits going to the Treasury.
The Sovereign Grant is typically based on 15 percent of Crown Estate profits but it had been temporarily increased to 25 per cent to pay for extensive renovations at Buckingham Palace.
On Thursday, the Treasury confirmed the grant would be cut to 12 per cent next year.
However, new deals for offshore wind farms are expected to see Crown Estate profits surge by 900 million pounds ($1.7 billion) a year.
"The new Sovereign Grant rate reflects the unexpected significant increase in The Crown Estate's net profits from offshore wind developments, while providing enough funding for official business as well as essential property maintenance," Finance Minister Jeremy Hunt said.
The Sovereign Grant was worth 86.3 million pounds ($162 million) in 2022.
The cut is unlikely to change that figure but the total sum going to the royals will be 24 million pounds less than if the rate had not changed.
In 2025 and 2026, it would be 130 million pounds lower than if the rate had remained at 25 per cent, the Treasury said.
King Charles had indicated he wanted this extra money to go to the wider good.
The money "will instead be used to fund vital public services, for the benefit of the nation", the Treasury said.
By ABC News.net
July 20, 2023
