Profits from the Crown Estate, part of which finances the English monarchy, have risen 148% this year. What does this mean for King Charles’ coffers and why were the profits record-breaking?
Britain’s King Charles III will receive a pay rise of as much as £45 million ($58 million) after profits from the sovereign’s public estate more than doubled, according to official documents.
Profits from the Crown Estate, some of which finance the monarchy, rose by 148%, from £443 million in 2022-23 to £1.1 billion ( $1.4 billion) in 2023-24, an annual report showed Wednesday.
The Crown Estate, which includes parcels of land and much of Britain’s seabed, is an independently run commercial enterprise, with profits going to the Treasury. They are also used as a benchmark to evaluate the level of public funding allocated to the royal family.
The exceptional results just published emerged above all thanks to a particular investment regarding renewable energy.
Historical profits for The Crown Estate, here’s why. What does this mean for the monarchy?
The Crown Estate, the nation’s portfolio of historic and commercial land holdings, is owned by the British monarch but is independently managed and its revenues are given to the government. In return, the monarchy currently receives 12% of the Crown Estate’s profits.
The royal family used to receive 25% of profits to fund its duties and renovations but agreed with the government to revise the figure downwards last year in anticipation of soaring profits. If the percentage had not been reduced, the royal family would have received £275 million.
The exceptional results just released were achieved primarily from the sale of options and leases on offshore wind projects on the seabed surrounding the British Isles, owned by The Crown Estate.
CEO Dan Labbad said the bumper profits are due to decades of investment in offshore wind (sustainable energy is one of the king’s favorite projects) and a “diversified and resilient” property and land portfolio.
Specifically, a tender for leasing an offshore wind farm held in 2021, called round 4 was very valuable. Under the lease, companies pay for the right to build offshore wind projects with optional rights on six winning projects, worth approximately £1 billion per annum, payable for a minimum of three years and up to a maximum of 10 years.
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The accounts of the royal family
Buckingham Palace has published separate accounts showing a summary of royal finances from 1 April 2023 to 31 March 2024, in the first full year of the King’s reign.
The King’s coronation, which took place on 6 May last year, cost the Sovereign Grant £800 million.
In the last financial year, £27.9 million was spent on royal family staff, while property maintenance cost £47 million, amid ongoing renovations to Buckingham Palace.
Travel costs, meanwhile, amounted to £4.2 million; The King and Queen’s four-day visit to Kenya last year cost £167,000.
The report also revealed that the royal family will receive two new helicopters in 2024-25 to replace the current 15-year-old ones, while the King’s state Bentleys will be converted to run on biofuel by next year.
Original article published on Money.it Italy 2024-07-24 15:31:14. Original title: I profitti record di Re Carlo grazie all’eolico
