Sovereign Grant to Be Reduced From 2027-28 Following King's Speech Announcement

The Sovereign Grant Bill was announced in the King's Speech in May 2026, setting the stage for public funding of the monarchy's running costs to be reduced from 2027-28. 9m for 2026-27, the second of a two-year hike to pay for Buckingham Palace repairs. Meetings headed by the Treasury are taking place in 2026 to decide the lower level of the Sovereign Grant.

The forthcoming legislation will allow a cut to the Sovereign Grant for 2027-28 as a one-off measure. The 'golden ratchet' mechanism has allowed increases in the Sovereign Grant but prevented it from going down, though the 'golden ratchet' will remain in place long term after the one-off cut in 2027-28. The Sovereign Grant review takes place every five years.

The Sovereign Grant was £31m when launched in 2012 and has almost trebled in real terms since its introduction in 2012. The Sovereign Grant is calculated as a percentage of the Crown Estate's profits, though the Crown Estate pays all its profits to the Treasury and the Sovereign Grant comes entirely from the Treasury with no direct link to Crown Estate profits.

MPs on the Public Accounts Committee will hold an inquiry into the Crown Estate in summer 2026.

The Public Accounts Committee inquiry will examine leasing arrangements for properties occupied by members of the Royal Family. Andrew Mountbatten-Windsor handed back East Lodge, a Crown Estate property near Royal Lodge. A YouGov opinion poll conducted in April 2026 found 64% supported the monarchy.

The same poll found 53% thought the Royal Family represented good value for money. There were 1,900 royal public engagements in 2024-25. The Keeper of the Privy Purse is currently James Chalmers. James Chalmers stated that the National Audit Office said the Buckingham Palace project has been 'managed well' and the 'approach to the programme should set it up to deliver good value for money'.

King Charles III's recent state visit to the United States concluded with President Trump announcing the scrapping of whisky tariffs. The Scotch Whisky Association stated that the tariffs had cost the whisky industry in Scotland £150m last year. The Duchy of Cornwall is describing itself as a 'social impact' organisation.

A Duchy of Cornwall spokesperson stated: 'The Duchy of Cornwall is changing. Our new strategy puts social and environmental impact at the heart of everything we do, ensuring the Duchy becomes a force for good in all the communities we serve. The Duchy of Cornwall plans to create 12,000 homes including a project to tackle homelessness.

The Duchy of Cornwall is restoring 3,000 acres of peatlands. Incomes from the Duchies of Lancaster and Cornwall provide more than £20m per year each for the King and Prince of Wales respectively. There is no legal obligation for the King or Prince of Wales to pay tax on their incomes but they pay voluntarily at the same statutory rates as other higher-rate taxpayers.

There is no inheritance tax on money passed down from one monarch to the next. Royal wills are not made public. BBC News reported that the monarchy’s finances have long been protected by tradition amid growing demands for transparency.