Report of the Royal Trustees on the Sovereign Grant Review 2023
Guidance on the Sovereign Grant, which supports the official duties of His Majesty The King.
Documents
Details
Under section 7 of the Sovereign Grant Act 2011, the Royal Trustees (Prime Minister, Chancellor and Keeper of the Privy Purse) have to consider whether the current level of 25% of The Crown Estate revenues from two years earlier remains appropriate to determine the amount of Sovereign Grant to be paid to support The King’s official duties. This includes the maintenance of Royal residences such as Buckingham Palace, which are used for formal hospitality and ceremonial events.
The first review of the percentage took place in 2016. The first review concluded that the percentage used to determine the Sovereign Grant should increase from 15% to 25%. This provided additional funding to enable the ten-year Reservicing programme of Buckingham Palace. The increased rate was first used in the determination of the Sovereign Grant for 2017-18.
This is the second review. In deciding that a lower percentage is now appropriate, the Royal Trustees have considered the Royal Household’s current income and expenditure, the level of the Sovereign Grant Reserve, and the costs of major projects to be carried out, including completing the Reservicing of Buckingham Palace. In addition, projected profits of The Crown Estate over the next two years have been taken into consideration - including expected increased revenue from Offshore Wind option fees.
The Royal Trustees have therefore concluded that the percentage used to calculate the Sovereign Grant should be decreased from 25% to 12%. The Royal Trustees’ next review will commence in 2026. The government has also committed to legislate for the level of the Grant to be reset once the Buckingham Palace Reservicing works are completed.