King Charles redirects £1 billion of wind farm profits towards the ‘common good’ | King Charles III

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The king has asked to take profits from a crown plantation deal worth £1bn a year to be used for the “wider public good” rather than boosting funding for the monarchy.

Under the taxpayer-funded Sovereign Grant, which currently stands at £86.3m, the monarch receives 25% of the Crown Estate’s annual surplus, which includes an additional 10% for the renovation of Buckingham Palace.

Six new offshore wind leases, announced by the Crown Estate on Thursday, have resulted in a large windfall for the property, which would normally lead to a jump in official funding for the monarchy.

But the king, who highlighted the cost-of-living crisis in his Christmas message, demanded that the extra money be directed “for the broader public good”, rather than the Sovereign Grant, at a time when many are facing financial hardship.

It is not clear as to the exact amount of taxpayer funding the King missed, but it was likely several million.

Crown ownership – an ancient repository of land and property – belongs to the reigning monarch “by right of the crown” but is not their private property.

The King delivers the revenues of the estate—more than £312 million a year—to the Exchequer every year for the benefit of the country’s finances, in exchange for the Sovereign Grant.

Keeper of the King’s secret purse, Sir Michael Stevens, who manages the royal family’s finances, has contacted the Prime Minister, Rishi Sunak, and Chancellor Jeremy Hunt – his fellow royal secretaries – to request an “appropriate reduction” in the percentage. of the profits from the Crown Estates used for the Sovereign Grant.

A Buckingham Palace spokesperson said: “In light of the offshore energy windfall, the Keeper of the Secret Purse has written to the Prime Minister and Chancellor to share the King’s wish that this windfall wealth be channeled for the wider public good, rather than directed to the King’s Grants. , by an appropriate reduction in the proportion of the Crown’s surplus ownership which finances the Sovereign Grant.”

The Sovereign Scholarship is based on funds in arrears for two years, so any increase in earnings for the Crown Estates and new percentage arrangements will not affect the grant until 2024-2025.

The king used his first Christmas broadcast last month to sympathize with families grappling with the cost of living crisis and to pay tribute to individuals, charities and religious groups who support those in need.

He spoke of the “great anxiety and suffering” of many who are trying to “pay their bills and keep their families fed and warm” during his televised message, which included footage of a food bank and other scenes of meals being distributed to the homeless.

The Sovereign Scholarship covers the ongoing costs of the royal family and events such as state receptions, investments, and garden parties.

The proportion rose from 15% to 25% in 2017 to cover the cost of a 10-year, £369m program of repairs to the palace.

The grant goes up if the profits of crown ownership increase, but it does not go down when it goes down.

The capital value of the portfolio is over £15 billion.

Crown confirmed Thursday that it has signed lease agreements for six offshore wind projects that have the potential to power more than 7 million homes.

Three of the six projects are located off the coast of North Wales, Cumbria and Lancashire, and three are in the North Sea off the coast of Yorkshire and Lincolnshire.

Together, they will pay around £1 billion for the Crown Estate each year.

Jas Jaspert, Managing Director, Crown Properties, said: “Today marks an important milestone for the UK on the path to net zero, unlocking the green energy potential of more than 7 million homes and demonstrating to the world that the UK’s offshore wind industry is growing at a rapid pace to help Facing the climate challenge.

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