Friday 21 July 2023

UK reduces King Charles’ funding amid offshore wind profits surge

The government has decided to cut King Charles' funding following a notable increase in profits from offshore wind developments managed by The Crown Estate.

The Crown Estate operates independently of both the King and the government, tasked with managing a portfolio of land and property belonging to the Sovereign

Chancellor Jeremy Hunt announced that the Sovereign Grant, which finances the monarchy's official duties, will be reduced from 25% to 12% of the Crown Estate's net profits starting next year.

This decision means the Royal Household's budget will experience a £24 million decrease in 2024/25 and a significant £130 million reduction in both 2025 and 2026, compared to the funding at the previous rate of 25%.

The saved funds will be allocated to support essential public services for the nation's benefit, the Treasury has said.

Chancellor Jeremy Hunt said: "For almost 300 years, Kings and Queens have surrendered the profits from The Crown Estate to the British people, and in return, the government has provided a fraction of that to properly support the King in undertaking his official duties.

"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, including completing the ten-year reservicing of Buckingham Palace."