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Royal funding falls to £99.9 million after five-year rise
The Sovereign Grant will drop from a record £138m this year to £99.9m next year and remain at that level for five years. Officials also published the first breakdown of personal tax paid by the monarch and the Prince of Wales.
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The annual public payment covering the monarchy's operating costs will decrease for the first time since 2012, moving from £138m to £99.9m beginning next year. The reduction follows a decade-long increase tied to Buckingham Palace renovations. The new amount will stay in place for five years after being approved by the prime minister and the chancellor.
Tax disclosure Officials released the first figures showing personal tax paid by the monarch, listed as £12.9m for 2024-2025, and by the Prince of Wales, listed at £7.76m. The figures cover income from the Duchy of Lancaster and other private sources, but no further breakdown of tax types or deductions was provided.
Funding structure The Sovereign Grant is calculated as a percentage of Crown Estate profits and paid by the Treasury. A temporary suspension of the "golden ratchet" rule allowed the current reduction, after which the new amount becomes the minimum baseline for future years.
The National Audit Office separately reported that two non-working members of the royal family continue to occupy palace properties whose rent is covered by the monarch. Questions remain over how the tax totals were calculated and whether additional spending offsets were applied.
