Six new offshore wind farms on the Crown Estate are expected to generate $1 billion in earnings, and King Charles has requested that these funds be used to the “wider public good” as opposed to the Royal Family.
The public funding for the Royal Household is based on 25% of Crown Estate earnings.
However, King Charles wishes to lower this percentage so that the Treasury has more funds available for public spending.
In his Christmas speech, the King discussed the strains of rising living expenses.
King Charles mentioned the challenges of the cost-of-living crisis in his Christmas address, and he appears to be taking action to prevent what might have been an embarrassing increase in royal income.
- King’s speech indicates concerns over living expenses.
- Money contributed for Queen is sent to a charity for fuel.
- Royal Family funding statistics from the previous year
Who makes up the British Royal Family? What is the role of the King?
The Crown Estate is a privately owned, for-profit company whose profits go to the Treasury; nonetheless, these revenues serve as a baseline for the amount of taxpayer money given to the Royal Family each year, known as the Sovereign Grant, which was worth £86.3 million in 2017.
Deals to build six new offshore wind farms, with a total value of £1 billion annually for at least three years in fees from companies purchasing the rights to erect wind farms on Crown Estate offshore sites, are now anticipated to dramatically increase these revenues.
Due to public financial demands, this would have resulted in a very big rise in the amount going into the Sovereign Grant, which may have been embarrassing.
According to Buckingham Palace, the King wants to lower the percentage of profits used to determine the grant due to the “offshore energy windfall.”
Currently, the Sovereign Grant is based on 25% of Crown Estate income, which is a temporary increase from the regular 15%. The additional money is utilized for Buckingham Palace’s repairs and upgrades.
The stipend is used to cover the expenses associated with functioning as a royal, such as travel for official engagements and royal palace maintenance.
With a decision anticipated within the next few months, the Treasury is now reviewing the amount of Crown Estate income that go into royal funding.
The chancellor and prime minister have received a letter from Sir Michael Stevens, the Keeper of the Privy Purse, proposing a “acceptable reduction.”
Republic, an anti-monarchy advocacy group, has scorned the action as “cynical PR to foreshadow a government decision to cut the proportion.”
The King’s comments “reflected an arrangement he had no power to change,” according to Graham Smith, the group’s chief executive.
Three of the new offshore wind farm locations are in the North Sea, off the coasts of Yorkshire and Lincolnshire, and off the coasts of North Wales, Cumbria, and Lancashire. The goal is for them to be able to provide enough electricity for seven million homes once they are developed.
The 36 offshore wind farms that are now in operation off the shores of England, Wales, and Northern Ireland will be increased by this.
The Crown Estate’s CEO, Dan Labbad, praised the advantages of this “next generation of projects.”
He said that they “demonstrate the far-reaching value that our world-class offshore wind sector can deliver for the nation” including “homegrown energy for all, jobs and investment for communities, revenue for the taxpayer, clean energy for the benefit of the environment, and a considerate, sustainable approach which respects our rich biodiversity.”