The monarchy’s core funding is set to nearly double over three years, reaching approximately £100million annually from 2027-28.
Royal Trustees have approved a new calculation method for the Sovereign Grant, which covers official royal duties and Palace upkeep, resulting in a core allocation of £99.9million – an increase of £48.1million compared to the £51.8million provided in 2024-25.
The decision was made by outgoing Prime Minister Sir Keir Starmer, Chancellor Rachel Reeves, and James Chalmers, the King’s Keeper of the Privy Purse and Treasurer.
This substantial rise comes as the decade-long supplementary funding for Buckingham Palace’s £369million refurbishment draws to a close in 2027, meaning the overall annual grant will actually decrease from £137.9million in 2026-27.
Keir Starmer and Rachel Reeves have faced backlash from anti-monarchists for locking in £100million annual royal funding
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The additional funds will address a significant backlog of maintenance work at occupied royal residences, bolster cyber security measures across royal properties, and finance the installation of more energy-efficient heating systems.
Windsor Castle alone will receive £11million specifically earmarked for replacing ageing boilers that are approaching the end of their operational lifespan.
Property maintenance spending reached over £28.2million in 2025-26 for the preservation of historic buildings excluding Buckingham Palace, representing an increase of roughly £10million.
Mr Chalmers emphasised that the Sovereign Grant does not constitute personal income for members of the Royal Family: “It funds the work of the institution not private lives or private wealth.”
The Crown Estate’s annual accounts for 2025-26, released on Thursday, recorded a net revenue profit of £487million
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From 2027-28, the Sovereign Grant will be calculated at 20.5 per cent of Crown Estate net profits, a significant jump from the current rate of 12 per cent.
This revised formula will remain in place for five years until the next review, with the Royal Household’s financial report indicating that Crown Estate profits are expected to be “significantly impacted” as Offshore Wind option fees come to an end.
The Crown Estate’s annual accounts for 2025-26, released on Thursday, recorded a net revenue profit of £487million.
The Treasury stated that recalculating the Sovereign Grant Bill would deliver “a sustainable and proportionate funding framework going forward”.
Republic chief executive Graham Smith declared that ‘royal finances are out of control, and parliament needs to act to slash the annual budget to below £10 million’
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Before the Buckingham Palace works began, the 2016-17 grant stood at £42.8million – equivalent to approximately £60.4million today when adjusted for inflation.
Republic, the campaign group advocating for an elected head of state, condemned the announcement.
Chief executive Graham Smith declared that “royal finances are out of control, and parliament needs to act to slash the annual budget to below £10 million.”
Mr Smith pointed out that the grant has grown far beyond inflation since its introduction at £31million in 2012, arguing that an inflation-adjusted figure would stand at £45million rather than the new £100million level.
The Keeper of the Privy Purse rejected suggestions the funding lacked accountability, insisting it was “not a blank cheque” and that strict value for money requirements applied.
“Expenditure is governed by the same standards and disciplines as any publicly funded body, with strict value-for-money requirements, detailed planning, multi-year strategies, independent audit, and Treasury oversight,” Mr Chalmers said.