Why King Charles will receive extra £45mn of public money
King Charles is set to see a significant increase in his official annual income, with a rise of over 50% according to official accounts. This boost comes as profits from the crown estate—which funds the monarchy—have skyrocketed to £1.1 billion. Consequently, the sovereign grant supporting the royal family's official duties will jump from £86 million in 2024-25 to £132million in 2025-26. The monarchy currently receives 12% of crown estate profits for its operations and Buckingham Palace's ongoing renovation worth £369million.
Increased funds to support Buckingham Palace renovation
The increased income is expected to be used to complete the £369 million Buckingham Palace renovation project, according to royal aides. Michael Stevens, King Charles's Keeper of the Privy Purse, stated that this significant increase "will be used to fund the final stages of the Buckingham Palace reservicing programme." The sovereign grant will undergo a review in 2026-27 to reassess its amount and ensure it is at an "appropriate level."
Prince Charles inherits £23.6 million
In his first full year after inheriting it from his father, Prince Charles received an income of £23.6 million from the Duchy of Cornwall. The surplus from this estate is used to cover the costs of official duties, charitable activities, and private lives of the Prince and Princess of Wales and their children. Meanwhile, Buckingham Palace's annual accounts revealed that Frogmore Cottage remains vacant following a £S2.4 million renovation for use by Duke and Duchess of Sussex—with costs since repaid.
Crown Estate profits double
The surge in crown estate profits, which more than doubled to £1.1 billion in 2023-24 from £ 443 million the previous year, was primarily driven by proceeds from the sale of leases for offshore wind projects on the seabed surrounding the British Isles. As the legal owner of the seabed, the crown estate is responsible for auctioning offshore wind rights. The sovereign grant is funded by taxpayers in exchange for King Charles's surrender of revenue from the crown estate.
Palace renovation project
A National Audit Office (NAO) report released on Tuesday revealed that the palace renovation project has been well managed despite some unforeseen structural damage and asbestos discovery. Gareth Davies, head of NAO, praised the project management for enabling the programme to remain within budget and respond well to challenges such as the pandemic. Despite battling cancer diagnoses, King Charles undertook 464 official engagements while Queen carried out 201 engagements during this financial year.
