The monarchy will receive £132 million in funding for 2026-27, marking the second consecutive year of record-high royal finances. The windfall comes from extraordinary profits generated by offshore wind farms managed by the Crown Estate.
Crown Estate net profits have reached £1.1 billion for the last financial year, driven primarily by lucrative offshore wind farm deals. The Sovereign Grant, which funds the royal family's official duties and palace maintenance, is calculated from these profits with a two-year delay.
Record funding boost continues
The monarchy is already benefiting from increased funding in the current 2025-26 financial year, receiving approximately £132 million in Sovereign Grant funding. This represents a substantial increase of £45.7 million compared to the £86.3 million received in 2024-25.
The total additional funding over the next two years amounts to £91.4 million above previous levels. However, Crown Estate profits are expected to decline significantly in future years as the temporary boost from offshore wind farm revenues diminishes.
Palace renovations drive spending
The temporary funding increase will help complete the remaining £100 million of Buckingham Palace's £369 million refurbishment programme. Additional funds will support an enhanced programme of works at other occupied royal palaces, projects that were delayed during the Covid pandemic.
James Chalmers, the King's new Keeper of the Privy Purse, explained the funding priorities. "The temporary uplift in the grant will also help repay the shortfalls from the years during which the Sovereign Grant remained fixed at £86 million," he said.
Heritage preservation focus
The enhanced programme will finance projects to "protect and preserve heritage buildings across the Occupied Royal Palaces". Many conservation works had been paused due to Covid impact and budgetary constraints, according to Chalmers.
"In funding their completion, the Royal Household is able to invest in the protection and preservation of properties held in trust for the nation, while supporting skilled jobs in conservation and traditional crafts across the UK," he added.
Funding formula adjusted
Royal Trustees reduced the Sovereign Grant percentage from 25% to 12% of Crown Estate net profits in 2023, responding to the massive offshore wind farm revenues. The King requested that extra profits be used for wider public good, though he will still receive more than £90 million in additional funding.
The Crown Estate encompasses a multibillion-pound portfolio including Regent Street in London's West End and Ascot Racecourse. Predictions from the 2023 review had estimated Crown Estate profits at £1.04 billion for 2023-24 and £1.05 billion for 2024-25.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
