Last week, Crown Estate reported a record profit of £ 345 million ($ 440.2 million) for the year to March 2020, but warned that profits for the financial year to March 2021
But the queen will not reduce her salaries, even if this year the income falls on the Crown mansion. The way the grant is calculated means that it will receive its share of £ 345 million – £ 86.3 million ($ 110 million) – in the year to March 2022. Its payment will also remain at that level in the coming years, even if the crown Profit property remains under pressure, as the law governing the grant does not allow it to fall into absolute terms.
“In the event of a reduction in Crown Estate’s profits, the Sovereign Grant is set at the same level as the previous year,” a Treasury spokesman told CNN Business. “The sovereign grant finances the official business of the monarchy and does not provide private income to any member of the royal family,” the spokesman said.
So less money from the Crown mansion will go to the treasury, but payments for the royal household will remain stable. Taxpayers will make up the difference.
The expected rescue program was broken by some economists on social networks.
The sovereign grant is reviewed every five years by the Prime Minister, the Minister of Finance and the Queen’s Treasurer. It has to be reviewed next year, which means, hypothetically, that the taxpayer subsidy can be reduced.
The news comes when British companies cut nearly 700,000 jobs between March and August, and more cuts are expected when government wage support is significantly reduced next month. The British are also facing the prospect of higher taxes to pay for rising government debt, which exceeded 2 trillion pounds ($ 2.5 trillion) for the first time last month.
However, the Royal Accounts will not be completely safe from the pandemic. The reduced growth of the Sovereign Grant will shave £ 20 million ($ 25.5 million) from the £ 369 million budget ($ 471.2 million) to renovate Buckingham Palace as the number of visitors to the palace and elsewhere declines. as Windsor Castle will result in an estimated revenue loss of £ 15 million ($ 19 million) over the next three years.
Stevens, the cashier, said the royal household “has no intention” of asking for additional funding and “will seek to manage the impact through our own efforts and efficiency”.
The financial report released on Friday shows that the costs covered by the Sovereign Grant, including salaries, property maintenance and travel expenses, rose 3.6% to £ 69.4 million (USD 88.6 million). ) in the year to March 2020. For comparison, consumer price inflation is between 1.5% and 2% for the same period.
“There seems to be a link between requirements and revenue,” he added.
“Max Foster contributed to this story.”