20 July 2023 , 20:50
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The King is in line for £80million more of taxpayers’ money over two years after a Crown Estate windfall.
It comes despite the Government’s plans yesterday to slash estate profits given to the royals from 25% to 12%.
However, annual profits from the estate’s new offshore wind deals are expected to soar above £1bn.
Changes to the way the taxpayer-funded Sovereign Grant is calculated mean the King is set to receive almost £40m extra a year in 2025 and 2026.
It is understood the rise will ensure the £369m reservicing of Buckingham Palace, due to finish in 2027. The overhaul follows a review by the Royal Trustees – PM Rishi Sunak, Chancellor Jeremy Hunt and Keeper of the Privy Purse Sir Michael Stevens.
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The King meets schoolchildren in Wales this week (PA)Mr Hunt said: “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.” The report set the expected Crown Estate profits in 2023-24 as £1.04bn and 2024-25 as £1.05bn. The grant could be £124.8m in 2025-26 and £126m in 2026-27 – a jump of nearly £38.5m and then £39.7m.
In January the King asked for wind farm profits to go to the public good. Yesterday he and Queen Camilla Brecon, Mid Wales, to celebrate the local volunteering and public service sector.
They also met schoolchildren at Brecon Cathedral to mark its centenary. The Treasury said if the profit rate had remained at 25% the royals’ income would have been £24m higher next year and £130m more in both 2025 and 2026.
The Sovereign Grant is based on funds two years in arrears, with the estate profits £442.6m in 2022-23. The monarchy would have received £110.7m in 2024/25 under the 25% rate.
At 12%, they would have got £53.1m but as it cannot be less than the previous year it will stay at the current £86.3m. The Palace declined to comment, saying it was a matter for the Treasury.