Buckingham Palace has made it plain that the King does not want the Royal Family to appear to benefit from the announcement of six new offshore wind energy lease agreements by the Crown Estate.
As a result of a £1bn wind farm deal that could have generated more funds for the royals. The King has signaled his desire to potentially restructure the monarchy’s funding.
The announcement of six new offshore wind energy lease agreements by the Crown Estate has generated a substantial windfall for the estate, which would typically increase the monarchy’s official funding.
However, the King has stated that he wants the funds to be used for the “greater public good.”
Under the taxpayer-funded Sovereign Grant, which is currently £86,3 million per year. The King receives 25 percent of the Crown Estate’s annual surplus to fund his family’s official work. Including an additional 10 percent for the refurbishment of Buckingham Palace until 2027.
However, following the announcement of the wind farm lease. The palace made it clear that the King does not want the Royal Family to be perceived as benefiting.
In a statement, Buckingham Palace said, “In light of the offshore energy windfall, the keeper of the privy purse has written to the prime minister and chancellor to share the King’s desire that this windfall is used for the greater public good, rather than to fund the Sovereign Grant, by reducing the proportion of Crown Estate surplus that funds the Sovereign Grant.”
As royal trustees of the Sovereign Grant, the prime minister, chancellor, and keeper of the privy purse determine the percentages, not the monarch.
Wider public good
The Sovereign Grant is based on funds two years in arrears; therefore, any increase in Crown Estate profits and new percentage arrangements would not affect the grant until 2024 and 2025.
In his first Christmas broadcast, the King expressed his concern regarding the cost of living crisis. And the current financial hardships many are experiencing.
During his accession council, he also expressed his desire to donate the revenues of the Crown Estate to the greater public good, reserving only a small portion to fund royal public duty.
The Crown Estate, which manages the seabed and half of the foreshore around England, Wales, and Northern Ireland, is the property of the reigning monarch “in right of The Crown,” but it is not their private property.
In exchange for the Sovereign Grant, the monarch surrenders the revenue from the estate. Which exceeds £312 million annually, to the Treasury for the benefit of the nation’s finances.
The wind farm lease agreements will undoubtedly be welcomed by the King. Who has fought for the environment for over half a century.
Three of the six projects will be located off the coasts of North Wales, Cumbria, and Lancashire. While the remaining three will be located in the North Sea. Together, they will have the capacity to provide energy for more than seven million homes. Together, they will pay almost £1 billion annually to the Crown Estate.
Gus Jaspert, managing director of the Crown Estate, stated, “Today marks a significant milestone for the United Kingdom on the path to net zero, unlocking green energy potential for more than seven million homes and demonstrating to the world that the UK offshore wind industry is expanding rapidly to help meet the climate challenge.
Democratic theatre
Graham Smith of the anti-monarchy organization Republic stated: “This was democratic theatre. As he had no desire to act, he issued a statement that reflected an arrangement over which he had no control. And he retains nothing, as it is not his to hold, and the government receives the entire benefit.”
On the introduction of the wind farm, he added: “This remark is cynical public relations intended to preempt a government decision to cut the percentage calculation; it should at least be treated with skepticism and criticism.
The sovereign gift is a dubious arrangement that does not reflect the £345 million year overall cost to the public.”
