Pressure mounts on Rachel Reeves to cancel a deal worth nearly £138 million of taxpayers’ money allocated to the Royal Family this year. The Chancellor is urged to take bold action ahead of discussions on future funding for the monarchy. Ministers are preparing legislation to reduce the contentious Sovereign Grant, which has surged by almost £50 million in three years primarily for Buckingham Palace renovations.
Keir Starmer’s anti-corruption adviser calls for increased transparency in royal finances, criticizing previous instances of the King benefiting from high rent charges to charities. Baroness Margaret Hodge warns that the recent Prince Andrew scandal could weaken the monarchy if there is no openness about the royals’ private income.
Former Labour minister Lord George Foulkes, a long-time advocate for transparency in royal finances, anticipates significant changes in the forthcoming King’s Speech. He expresses concerns about the perception of the royals being out of touch with the public, citing instances like Queen Camilla’s helicopter arrival at a race event.
The Treasury confirms a review of the funds allocated to the royals as part of a five-year assessment process. However, there are no immediate plans to scrap the Sovereign Grant system, established by former Tory Chancellor George Osborne in 2011.
Baroness Hodge, appointed as the Government’s anti-corruption champion, asserts that the Sovereign Grant has become outdated and should be revised to align with the current economic situation. She highlights discrepancies in the grant’s increase during times of austerity and public service cuts.
The ongoing review coincides with challenges faced by the King, including public protests and scrutiny over Prince Andrew’s associations with Jeffrey Epstein. Additionally, MPs are expected to investigate the Crown Estate regarding the use of royal properties and their value to taxpayers.
The Sovereign Grant, which was £132.1 million in 2025/26, has risen to £137.9 million this year, primarily to fund Buckingham Palace renovations. The grant covers official expenses such as staff salaries, travel costs, and palace maintenance.
Public opinion on the monarchy remains divided, with a majority supporting the continuation of the royal family. However, a significant portion of voters advocate for an elected head of state. The King and Prince William derive private income from various sources, including historic estates and investments.
Baroness Hodge’s scrutiny of the Duchy of Cornwall revealed advantages favoring the royals over commercial competitors. While there is no legal obligation for the King to pay taxes, voluntary contributions have been made on certain income sources since 1993.
Recent investigations have raised concerns about the royals’ estates earning substantial amounts from renting properties to public institutions and charities. Calls for modernization and transparency in financial matters are emphasized to ensure the sustainability of the monarchy.
Buckingham Palace emphasizes that the Sovereign Grant undergoes periodic review by the Royal Trustees to align funding with the monarch’s official duties. The grant’s calculation based on Crown Estate profits has sparked debates over parliamentary scrutiny and transparency.