**The Royal Family’s Spending Exceeds Government Funding Despite Efforts to Control Costs**
The Royal Family’s spending reached £107 million ($135 million) in the last fiscal year, exceeding its government funding by £21 million. This increase in spending comes despite the Family’s efforts to curb costs and the fact that its publicly funded income remained the same.
The rise in official spending, which amounts to a 5% increase from the previous year, was attributed to various factors. These include costs related to renovations at Buckingham Palace, the death of Queen Elizabeth II, and the accession of King Charles III.
Buckingham Palace, the King’s official London residence, is currently undergoing a 10-year repair project that is projected to cost £369 million. In the last year, the Royal Family allocated £43 million for this undertaking.
Another contributing factor to the increased spending was “the impact of the Consumer Price Index rising by 10.1%” during the same period.
**The Funding Sources for the Royal Family**
The Royal Family receives funding from a variety of sources, which includes the Sovereign Grant provided by the U.K. Treasury. This grant is calculated based on a proportion of the profits from the Crown Estate, which is the monarchy’s privately run property empire. The Crown Estate, valued at £15.6 billion in 2022, provides the income for the Sovereign Grant.
The Sovereign Grant is allotted to cover the official royal expenditure, such as staffing costs at royal residences and royal visits conducted by working members of the family.
In addition to the Sovereign Grant, the Royal Family also generates income from two collections of land and property—the Duchy of Lancaster and the Duchy of Cornwall—which are owned by the monarch and his eldest child, respectively. The King and Prince William inherited significant wealth from these estates upon the death of Queen Elizabeth II.
The royal family also supplements its spending through private wealth and investment.
**Expenses and Income from Royals**
During the past year, the Royal Family spent over £1 million on helicopter flights and £146,000 on the King’s tour of Germany, which was his first state visit as monarch. Over the same period, the family carried out 2,700 engagements and hosted 95,000 guests at royal residences.
According to official accounting documents, the Royal Family earned £9.8 million in additional income last year to supplement the Sovereign Grant. This figure represents a 1% decrease from the previous year and less than half of what the royals earned prior to the pandemic.
**Efforts to Reduce Costs and Emissions**
King Charles has shown a commitment to reducing costs and carbon emissions. To achieve this, he has instructed staff to turn down thermostats and switch off heating in the swimming pool at Buckingham Palace. These measures have resulted in 16% reduction in emissions. A “concerted effort” has been made across all royal residences to keep indoor temperatures at specific levels and educate staff about reducing heat loss.
**Michael Stevens’ Statement**
Michael Stevens, the Keeper of the Privy Purse, stated that the accounts cover a significant period of transition for the Royal Family, including the end of Queen Elizabeth II’s reign and the coronation of King Charles. He acknowledged the challenges posed by the pandemic and inflationary pressures, which have affected the Royal Household along with other organizations.
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