The Sovereign Grant has been changed after the Crown Estate saw a surge in profits due to offshore wind.
The fund, used to finance the monarchy’s official duties, will be 12% of the Crown Estate’s net profits next year, down from 25%, the Treasury has said.
Cutting the rate to 12% is expected to reduce the Sovereign Grant by £24m in 2024 to 2025, compared with the rate staying at 25%.
This means the total Sovereign Grant will remain flat at £86.3m.
This is expected to go towards the reservicing of Buckingham Palace, works aimed at preventing a serious risk of fire, floods, and damage to the building.
Chancellor of the Exchequer Jeremy Hunt 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.”
