King Charles and Queen Camilla attend Royal Ascot
King Charles has been dealt another financial blow as it has emerged the Sovereign Grant will be slashed to 12 percent of the Crown Estate's net profits, down from 25 percent.
The change will come into effect next year, with the money being used to help pay for the monarchy's official duties and expenses.
The news was announced today by the Treasury, following a review of the formula which was carried out by the Government and the Keeper of the Privy Purse Sir Michael Stevens.
The Sovereign Grant replaced the Civil List in 2012 and uses a percentage of the profits from the Crown Estate as a benchmark to decide how much the Royal Family should receive in taxpayer money.
It had been expected that the percentage may be revised down to a lower number, particularly after the Crown Estate's profits skyrocketed by ￡130million to ￡442.6million because of a boom in offshore wind farms.
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King Charles is facing a slash to the Sovereign Grant (Image: Getty)
However King Charles has said he will not benefit from the extra money and it should be distributed in the community.
The King has been hit by the cost of living crisis as much as the rest of us, as the royals have had to dip into their savings to increase their taxpayer-funded spending.
Last month's Sovereign Grant Report revealed that Buckingham Palace spent ￡700,000 of taxpayers’ money on the Queen’s Platinum Jubilee and ￡1.6 million on her funeral in an expensive year for the Firm.
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Queen Elizabeth's state funeral cost over ￡1million (Image: Getty)
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King Charles prepares to hold his first State Opening of Parliament as monarch
King Charles will participate in his first State Opening of Parliament since becoming monarch later this year.
The House of Lords has confirmed that the key date in the parliamentary calendar will take place on November 7.
Sir Michael Stevens, the Keeper of the Privy Purse and the King’s most senior financial adviser, said: "This has been an exceptional year for the Royal Household in many different ways.
"Covering as it does the period from April 1, 2022, to March 31 2023, it relates to a year of grief, change and celebration, the like of which our nation has not witnessed for seven decades."
By cutting the rate to 12 percent the Sovereign Grant will be reduced by ￡24million in the year 2024/25 and by over ￡130million in both 2025 and 2026.
King Charles prepares to hold his first State Opening of Parliament as monarch
King Charles will participate in his first State Opening of Parliament since becoming monarch later this year.
The House of Lords has confirmed that the key date in the parliamentary calendar will take place on November 7.
King Charles will participate in his first State Opening of Parliament since becoming monarch later this year.
The House of Lords has confirmed that the key date in the parliamentary calendar will take place on November 7.
Sir Michael Stevens, the Keeper of the Privy Purse and the King’s most senior financial adviser, said: "This has been an exceptional year for the Royal Household in many different ways.
"Covering as it does the period from April 1, 2022, to March 31 2023, it relates to a year of grief, change and celebration, the like of which our nation has not witnessed for seven decades."
By cutting the rate to 12 percent the Sovereign Grant will be reduced by ￡24million in the year 2024/25 and by over ￡130million in both 2025 and 2026.
Sir Michael Stevens, the Keeper of the Privy Purse and the King’s most senior financial adviser, said: "This has been an exceptional year for the Royal Household in many different ways.
"Covering as it does the period from April 1, 2022, to March 31 2023, it relates to a year of grief, change and celebration, the like of which our nation has not witnessed for seven decades."
By cutting the rate to 12 percent the Sovereign Grant will be reduced by ￡24million in the year 2024/25 and by over ￡130million in both 2025 and 2026.
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The money saved will be used to for the benefit of the nation (Image: Getty)
The money saved will instead be used for the benefit of the nation and to fund vital public services.
The Sovereign Grant amount will remain flat at ￡86.3million until legislation changing the rate goes into effect in the autumn, with some of the money going towards the costly renovations at Buckingham Palace.
Chancellor Jeremy Hunt, who was part of the Trustees in charging of reviewing the rate, said: "The new Sovereign Grant rate reflects the unexpected significant increase in The Crown Estate’s net profits from offshore wind developments, while providing enough funding for official business as well as essential property maintenance, including completing the ten year reservicing of Buckingham Palace."
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