The British Royal Household has unveiled its latest financial report, confirming that the annual Sovereign Grant, the taxpayer-funded allowance supporting royal duties and palace maintenance, remains unchanged at £86.3 million ($118.50 million).
This fixed sum, which has held steady over the past three fiscal years, supports the monarchy’s official responsibilities and the upkeep of royal residences.
In exchange, the Crown surrenders all profits from the Crown Estate, a vast portfolio including prominent properties in central London, the Ascot Racecourse, and the seabed surrounding England, Wales, and Northern Ireland, to the government, a tradition dating back to 1760.
Essentially functioning as a royal expense account, the Sovereign Grant covers costs tied to public duties such as travel, staffing, and building maintenance.
It notably does not include security expenditures, which represent a significant financial burden due to the high-profile nature of royal appearances and ceremonies.
According to the Sovereign Grant Report, royal family members carried out more than 1,900 public engagements domestically and abroad.
Additionally, 828 events held at official royal residences welcomed over 93,000 guests throughout the year.
Of the total £86.3 million, £51.8 million ($71.1 million) was allocated for core expenditures, while £34.5 million ($47.4 million) went toward the ongoing renovation of Buckingham Palace.
The landmark, a central attraction in London, is undergoing major upgrades, including modernized electrical wiring, plumbing systems, elevators, and more accessible facilities.
As part of cost-efficiency measures, the Royal Household announced the retirement of the historic royal train.
First introduced when Queen Victoria traveled from Slough to London Paddington in 1842, the train’s use has been reevaluated for value and practicality.
“The royal family will decommission the royal train ‘following a thorough review into its use and value for money,'” the financial report noted.
The monarchy also continues its push toward environmental sustainability. The report outlines plans to expand the use of sustainable aviation fuel (SAF) and further electrify the royal vehicle fleet.
In 2024, a goal was set to transition to an “almost fully electric” fleet, though no completion date was given. Meanwhile, Britain’s PA Media reported that King Charles III’s two Bentleys will be adapted to run on biofuel.
Alongside the Sovereign Grant, the royal family derives income from two private estates, the Duchy of Lancaster and the Duchy of Cornwall, as well as personal investments and property holdings.
Nonetheless, royal funding remains a point of public debate. Critics argue the Sovereign Grant system lacks justification. Anti-monarchy group Republic has called for its abolition, urging that all Crown Estate profits be retained by the public.
“The grant system is mad. Funding goes up not because of any need for extra money, but because the grant is linked to government profits from land managed by the Crown Estate,” stated Republic campaigner Graham Smith earlier this year. “The palace has recycled the excuse of needing the money for refurbishment of Buckingham Palace, an excuse used to double the grant ten years ago.”
“It’s time that half a billion pounds was put to good use, that there was proper accounting for the cost of the monarchy and for that cost to be slashed to just a few million pounds,” Smith added.
In response, the Keeper of the Privy Purse, James Chalmers, emphasized the royal family’s intangible contributions.
“Soft power is hard to measure but its value is, I believe, now firmly understood at home and abroad, as the core themes of the new reign have come into even sharper focus, and the Royal Family have continued in their service to the nation, Realms and Commonwealth,” he said on Monday.