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Queen's income to face scrutiny after public funding for monarchy rises to £40m Queen's income to face scrutiny after public funding for monarchy rises to £40m
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The income the Queen receives from the public purse is to come under severe scrutiny by the Treasury after taxpayer funding of the monarchy rose by nearly a third to £40m.The income the Queen receives from the public purse is to come under severe scrutiny by the Treasury after taxpayer funding of the monarchy rose by nearly a third to £40m.
Buckingham Palace has been shielded from the cuts affecting other public services by a funding formula put in place three years ago which guarantees the royal household 15 per cent of the profits of the £9.9bn Crown Estate, which is managed on behalf of the monarch.Buckingham Palace has been shielded from the cuts affecting other public services by a funding formula put in place three years ago which guarantees the royal household 15 per cent of the profits of the £9.9bn Crown Estate, which is managed on behalf of the monarch.
The resulting Sovereign Grant has risen from £31m in 2012-13 to £40m in the current financial year – a 29 per cent increase in three years . A clause in the legislation laying out the system also means that the grant can never be less than in the previous year.The resulting Sovereign Grant has risen from £31m in 2012-13 to £40m in the current financial year – a 29 per cent increase in three years . A clause in the legislation laying out the system also means that the grant can never be less than in the previous year.
The windfall for the royal household is due to the commercial success of the Crown Estate, a vast portfolio of property investments ranging from London’s Regent Street to Ascot race course.The windfall for the royal household is due to the commercial success of the Crown Estate, a vast portfolio of property investments ranging from London’s Regent Street to Ascot race course.
Although legally owned by the Queen, it is managed by a separate board and pays all of its profits, which last year stood at £267m, to the Treasury. The Treasury then pays the grant, which is currently pegged at 15 per cent of those profits and is designed to fund the monarch’s official duties as well as expenses such as staff and the maintenance of certain palaces.Although legally owned by the Queen, it is managed by a separate board and pays all of its profits, which last year stood at £267m, to the Treasury. The Treasury then pays the grant, which is currently pegged at 15 per cent of those profits and is designed to fund the monarch’s official duties as well as expenses such as staff and the maintenance of certain palaces.
But now the trustees of the fund, who include Prime Minister David Cameron and Chancellor George Osborne, could change the level of the grant under a review due to take place next spring. But now the trustees of the fund, who include Prime Minister David Cameron and Chancellor George Osborne, could change the level of the grant under a review due to take place next spring. The Crown Estate’s portfolio includes Ascot racecourse
Campaigners have criticised the current arrangements, which will see another increase announced in the next few weeks, for 2016-17, as out of step with the fresh wave of austerity due to be unleashed on public services by the new Conservative Government.Campaigners have criticised the current arrangements, which will see another increase announced in the next few weeks, for 2016-17, as out of step with the fresh wave of austerity due to be unleashed on public services by the new Conservative Government.
Jonathan Isaby, the chief executive of the TaxPayers’ Alliance, said: “It seems odd to guarantee that, in effect, the [royal] budget will never go down. We need to look again at the settlement to ensure that the costs of the Royal Family are kept under control.”Jonathan Isaby, the chief executive of the TaxPayers’ Alliance, said: “It seems odd to guarantee that, in effect, the [royal] budget will never go down. We need to look again at the settlement to ensure that the costs of the Royal Family are kept under control.”
The sharp rise in the Sovereign Grant has been a welcome boon for royal aides who are tasked with tackling a £50m maintenance backlog at the occupied palaces, which include Buckingham Palace and Windsor Castle.The sharp rise in the Sovereign Grant has been a welcome boon for royal aides who are tasked with tackling a £50m maintenance backlog at the occupied palaces, which include Buckingham Palace and Windsor Castle.
Under the terms of the grant, any surplus can be paid into a reserve fund. But if that fund then reaches more than half the value of the annual grant, the trustees can adjust the proportion of the Crown Estate profits returned to the royal household.Under the terms of the grant, any surplus can be paid into a reserve fund. But if that fund then reaches more than half the value of the annual grant, the trustees can adjust the proportion of the Crown Estate profits returned to the royal household.
A Commons committee found last year that the Queen’s staff had resorted to putting buckets under dripping ceilings to protect works of art and that palace boilers were more than 60 years old, contributing to the annual energy bills of £774,000.A Commons committee found last year that the Queen’s staff had resorted to putting buckets under dripping ceilings to protect works of art and that palace boilers were more than 60 years old, contributing to the annual energy bills of £774,000.
A Buckingham Palace spokesman said: “A review will take place after April 2016 to ensure that the grant provides the resources needed to support the Queen’s official duties.”A Buckingham Palace spokesman said: “A review will take place after April 2016 to ensure that the grant provides the resources needed to support the Queen’s official duties.”