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The Treasury has agreed to allocate huge sums into the Queen’s Sovereign Grant to boost her income after coronavirus saw profits nosedive. The intervention will be directed towards the Queen’s property and land investments, which have plummeted in value throughout the pandemic.
The Queen receives 25 percent of the annual profits from the Crown Estate.
But the group has admitted this year is set to see profits decline “significantly”.
After lockdown measures were lifted in the UK, it was announced the Royal portfolio of property fell in value by 1.2 percent to £13.4 billion.
The Crown Estate still recorded an annual profit of 0.4 percent despite the pandemic eating at the property portfolio’s value.
A Daily Mail report held the Treasury will not allow the Queen’s finances to drop and will ensure they remain the same in 2022 and 2023.
The Sovereign Grant for 2021 to 2022 is expected to stay at £86.2 million, with more details of the Grant tied to last year’s Estate income expected to be realised later today.
Chancellor Rishi Sunak is expected to outline more public spending measures to help the UK cope with a resurgent battle with coronavirus.
A Treasury spokesman said: “In the event of a reduction in the Crown Estate’s profits, the Sovereign Grant is set at the same level as the previous year.”
He said the Estate’s profits are capped to prevent excessive funding for the Royal Family in the event profits rise too high.
The Treasury spokesman defended the financial support to the Queen and said the Crown Estate’s revenue “helps pay for our vital public services”.
The spokesman also said the Grant does not provide members of the Royal Family with private income.
Instead the Grant bank rolls “official business” conducted by the Estate.
A Buckingham Palace spokesman also said as well as supporting official royal duties, the Grant is also put towards maintaining the royal palaces and is “calculated on 15 percent of the income surplus of the Crown Estate”.
They added: “An additional 10 per cent was agreed to fund a ten-year re-servicing of Buckingham Palace.”
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The Crown Estate includes large chunks of London’s West End, Windsor Estate and Ascot Racecourse in its portfolio.
Over the last decade, the Estate is reported to have generated £2.8 billion for the Treasury.
Due to “economic and market disruption” from the pandemic, the Crown has announced it will stagger payments to the Treasury this year.
It has paid more £88 million in July “with further payments to follow as trading conditions develop”.
Some have expressed outrage over the “royal bailout”, with Robert Palmer of Tax Justice UK having said to the Daily Mail: “The formula ensures that the amount contributed to the Exchequer far exceeds the amount given to the monarch.
“This royal bailout will be tough to stomach for people who love the Queen but have lost their jobs and businesses during the pandemic.”
Dan Labbod, the Estate’s chief executive, said of the staggered payment plan to the Treasury: “We are under no illusions about the challenges we face.”
David McClure, royal expert, added: “With stormy waters ahead, the Queen’s lockdown court ‘HMS Bubble’ may have to batten down the hatches pretty sharpish.”
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