Royal Family facing massive budget cuts

The British government has slashed the public funding the royal family receives after an expensive 12 months, which included the Queen’s Platinum Jubilee and funeral.

King Charles III and Queen Camilla have had their budget slashed next year by half. Picture: AFP

The money the royal family receives from the British taxpayer has been slashed by a staggering £24 million (A$45 million) over the next year.

The Sovereign Grant – used to fund the monarchy‘s official duties – will be 12 per cent of the Crown Estate’s net profits next year, down from 25 per cent, the British Treasury announced on Thursday local time.

The Treasury said the Royal Household’s budget will be £24 million (A$45 million) lower next year and £130 million (A$246 million) lower in both 2025 and 2026, than if the rate had remained at 25 per cent.

The total Sovereign Grant for 2024/25 will remain flat at £86.3 million (A$163 million)

The change has come after a significant hike in the Crown Estate’s profits from offshore wind deals after cost-conscious King asked in January for the wind farm profits to be used for the “wider public good” instead.

The money King Charles III receives from the taxpayer has been slashed by $45 million next year. Picture: AFP

A review published by Royal Trustees set out the new proportion of the Crown Estate’s net profits used to calculate the amount of government funding to support King Charles.

The trustees are Prime Minister Rishi Sunak, Chancellor Jeremy Hunt and Keeper of the Privy Purse, Sir Michael Stevens.

“Cutting the rate to 12 per cent is expected to reduce the Sovereign Grant by £24 million (A$45 million) in 2024/25, compared with the rate staying at 25 per cent, and over £130 million (A$246 million) lower in each of 2025 and 2026,” the review stated.

“This money will instead be used to fund vital public services, for the benefit of the nation.”

Travel funding has been cut across the board for the royals. Picture: Getty Images

The death of Queen Elizabeth and soaring inflation rates amid Britain’s cost of living crisis forced royal officials to dip into the reserve fund last year, official accounts revealed last month.

Royal spending came to £107.5 million (A$204 million), but the cost to taxpayers remained static at £86.3 million (A$163 million), with royal officials dipping into their reserves to the tune of £20.7 million (A$40 million).

The annual Sovereign Grant report, which details how the monarchy is funded by taxpayers, revealed that the late Queen’s funeral cost the Palace £1.6 million (A$3 million).

Last year‘s Platinum Jubilee celebrations cost a further £700,000 ($1.3 million).

King Charles III, pictured with Queen Camilla, asked for the wind farm profits to be ploughed into wider public services instead. Picture: Getty Images

There were also £444,000 (A$842,000) worth of redundancies to 16 members of the Queen’s staff who lost their jobs.

The 2022/23 review also found that Prince Harry and Meghan Markle repaid the expenditure costs forked out by taxpayers in renovating their former Windsor home, Frogmore Cottage, totalling £2.4 million (A$4.55 million).

The cost of royal travel dropped from £4.5 million (A$8.5 million) to £3.9 million (A$7 million) and energy bills shot up 40 per cent to £4.5 million (A$8.5 million).

The Sovereign Grant was frozen at £86.3 million (A$163 million), with £51.8 million (A$98 million) funding the King’s official duties plus an additional £34.5 million (A$65 million) paying for ongoing building works at Buckingham Palace.

But the cost of funding the monarchy to the British public amounts to just £1.29 (A$2.45) per person.

Funding the monarchy to the British public amounts to just $2.45 per person. Picture: Karwai Tang

Sir Michael Stevens, Keeper of the Privy Purse, said that it had been an “exceptional year” for the Royal Household.

“It relates to a year of grief, change and celebration, the like of which our nation has not witnessed for seven decades,” he said.

The royal family undertook 2,710 engagements throughout the UK and overseas, a 14 per cent increase on the previous year.

Originally published as Royal Family facing massive budget cuts