Title: British Royal Family Set to Receive Increased Funding in Coming Years
Word Count: 338
The British royal family is poised to receive a significant increase in funding over the next few years, as per the annual Sovereign Grant, which determines the amount allocated to the royals by the UK government. While the grant for the year 2022-2023 remains at a steady $96 million, it is anticipated to rise in subsequent years.
The Sovereign Grant is calculated using a formula that takes into account a percentage of the profits from the Crown Estate, a collection of hereditary assets owned by the monarch and valued at $20.5 billion. Recent additions, including six new offshore wind farms worth $1.1 billion, have boosted the estate’s value and generated substantial additional income.
Previously, 25% of the Crown Estate’s profits were allotted to the royal family. However, due to increased earnings, this percentage will now be reduced to 12%. Although the reduction limits the amount given, it is expected that the royal family will still benefit from significant windfalls.
Projections indicate that in 2023-2024, the royal family will generate profits of around $1.30 billion, which will increase to $1.35 billion in 2024-2025. These profits will contribute to the funding received by the royal family.
The decision regarding funding for the royal family is made by the “royal trustees,” currently comprising British Prime Minister Rishi Sunak and Finance Minister Jeremy Hunt. An important factor in this decision-making process is the “golden ratchet” clause, introduced in 2011, which allows funding to increase as profits rise, but not decrease from the previous year.
The sovereign grant, in place since 2012, serves to cover the costs associated with maintaining and operating royal properties. The reduction in the percentage allocated to the royals can be attributed in part to a temporary measure implemented in 2017 to fund renovations at Buckingham Palace.
As the value of the Crown Estate continues to rise through successful investment ventures, the funding received by the royal family is set to grow in the coming years.