The royal family on the Buckingham Palace balcony at Trooping the Colour.
(The Post News)- The British Royal Household’s annual financial report, released on Monday, confirms that the royal family will receive £86.3 million (approximately $118 million) in government funding for the 2025–2026 financial year. The amount has once again sparked debate with UK taxpayers.
The funding, known as the Sovereign Grant, is one of the royal family’s three main sources of income and is financed by the British public. It acts as an expense account, covering the costs of the royal family’s official duties, staff salaries, travel, and the maintenance of historic properties such as Buckingham Palace and Windsor Castle.
In exchange, the monarch contributes all profits generated by the Crown Estate — a large collection of land, properties, and marine assets, including areas of central London and Ascot Racecourse — to the government. This financial arrangement dates back to 1760.
The £86.3 million sum remains unchanged from the previous three financial years. Of that amount, £51.8 million (around $71 million) will be used to cover core costs, while £34.5 million (approximately $47 million) is earmarked for the ongoing modernization and refurbishment of Buckingham Palace, a major tourist attraction.
The report highlights the monarch’s significant contribution to the economy, noting that members of the royal family undertook more than 1,900 public engagements both in the UK and abroad. Additionally, royal residences hosted nearly 830 official events, welcoming over 93,000 guests.
The Sovereign Grant also financed 76 core maintenance projects, including the full replacement of the Store Tower Roof at Windsor Castle — another key tourist destination. The funds have helped support the monarchy’s growing sustainability efforts, such as the transition to electric vehicles and increased use of sustainable fuels. In line with cost-saving and modernisation goals, it was announced that the historic royal train will be decommissioned by March 2027.
Despite these positive contributions, critics argue that the cost of maintaining the monarchy remains too high.
Groups like Republic have renewed calls for the Sovereign Grant to be scrapped, urging that the profits from the Crown Estate should go entirely to the public without funding the royal family.
However, the Keeper of the Privy Purse, James Chalmers, has defended the grant, saying:
“Soft power is hard to measure but its value is, I believe, now firmly understood at home and abroad as the Royal Family have continued in their service to the nation, Realms, and Commonwealth.”
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