In a significant financial update, the Royal Family is poised to see a substantial increase in their official annual income, with a projected rise of more than £45 million, culminating in a total exceeding £130 million for the fiscal year 2025/2026. This adjustment is primarily due to the Crown Estate’s robust performance, with profits soaring to £1.1 billion.
The adjustment in the Sovereign Grant from £86.3 million in the 2024/2025 period to £132 million the following year will principally finance the concluding phases of the extensive £369 million refurbishment of Buckingham Palace. This decade-long project is reported to be on track both financially and timewise.
A review scheduled for 2026/27 aims to reassess and legislate the funding levels for the monarchy, ensuring they are kept at a “more appropriate” level, according to a Palace spokesperson.
Key Investments and Upgrades:
- Helicopter Updates: The royal household anticipates the arrival of two AgustaWestland AW139 helicopters in 2024-25, replacing the older Sikorsky models. These helicopters are vital for enabling the Royal Family to fulfill their commitments across remote UK regions.
- Vehicle Innovations: The King’s state Bentleys are set to transition to bio-fuel and eventually to an all-electric fleet. Meanwhile, solar panels have been installed at Windsor Castle, marking a sustainable shift in royal residences.
- Energy Efficiency Measures: Historic gas lanterns at Buckingham Palace have been adapted with electrical fittings to enhance energy efficiency while preserving their traditional aesthetic.
The Sovereign Grant, sourced from taxpayer funds in exchange for the King’s forfeiture of the Crown Estate’s revenues, also covers the monarchy’s official travel expenses which slightly increased this year.
Notable Expenditures:
- The King and Queen’s state visits to Kenya and France were among the most costly, with the Kenya trip amounting to £166,557 and the France visit costing £117,942.
- Housekeeping and hospitality expenses saw a rise to £2.6 million from £2.4 million in the previous year.
Despite these increases, total expenditure saw a decrease of 17%, or £18.4 million, year-over-year, attributed mainly to the reduced spending on the Palace’s renovation.
Additionally, the report highlighted that £600,000 of the Sovereign Grant was allocated to last year’s coronation and its associated events, totalling an expenditure of £800,000.
In a move reflective of the Royal Family’s responsiveness to financial ethics, the funding mechanism was adjusted from 25% to 12% of the Crown Estate’s net profits, redirecting an additional £143 million towards public welfare, following the lucrative wind farm deals by the Crown Estate.
This financial reshuffling not only underscores the Royal Family’s commitment to maintaining their historical estates and fulfilling their ceremonial duties but also their awareness and responsiveness to public scrutiny regarding their funding.
