Last week the Crown Estate reported record earnings of £ 345 million ($ 440.2 million) for the year ended March 2020 but cautioned that earnings for the fiscal year ended March 2021
But the Queen is not going to cut wages even if Crown Estate income falls this year. The way the grant is calculated means that she will receive her portion of £ 345m – £ 86.3m (US $ 110m) – in the year through March 2022. Your payout will remain at this level for years to come, even if the Crown Estate’s profit remains under pressure as the law governing the grant does not allow it to fall in absolute terms.
“In the event of a decrease in Crown Estate’s profits, the sovereign grant will be set at the previous year’s level,” a Treasury Department spokesman told CNN Business. “The Sovereign Grant finances the official business of the monarchy and does not provide any member of the royal family with a private income,” said the spokesman.
So less money would flow into the treasury from the Crown Estate, but payments to support the royal budget would remain stable. Taxpayers would make the difference.
The expected bailout has been criticized by some economists on social media.
The Sovereign Grant is reviewed every five years by the Prime Minister, Treasury Secretary and the Queen’s Treasurer. The review is scheduled for next year, which hypothetically means the tax subsidy could be reduced.
The news comes that UK companies are shedding nearly 700,000 jobs between March and August and more layoffs are expected if government support for wages is scaled back significantly over the next month. The British also face the prospect of higher taxes on soaring national debt, which topped £ 2 trillion ($ 2.5 trillion) for the first time last month.
Royal accounts will not be entirely spared from the pandemic, however. The reduced growth of the Sovereign Grant will save £ 20 million ($ 25.5 million) out of the £ 369 million ($ 471.2 million) budget spent on renovating Buckingham Palace, while decreasing visitor numbers to the Palace and other venues such as Windsor Castle will result in an estimated loss of income of £ 15 million (US $ 19 million) over the next three years.
Stevens, the treasurer, said the royal budget “has no intention” to ask for additional funds and “will seek to deal with the implications through our own efforts and efficiency”.
The financial report released on Friday shows that sovereign grant-covered expenses, including payroll, property maintenance and travel expenses, rose 3.6% to £ 69.4 million through March 2020 . USD) have risen. In comparison, consumer price inflation ranged between 1.5% and 2% over the same period.
“There seems to be a separation between requirements and revenues,” he added.
– Max Foster contributed to this story.