The cost of the Royal Family to British taxpayers has sparked ongoing controversy. Anti-monarchy campaigners, such as the Republic group, argue that the annual expenditure of £510 million, almost six times the £86 million provided by the Sovereign Grant, is excessive. The Sovereign Grant, funded by profits from the Crown Estate, covers expenses such as staff salaries, travel, and maintenance of royal properties, but it does not include security costs.
Republic estimates that security costs for the Royal Family likely reach £150 million, based on media reports. The group has urged the government to provide a transparent figure for these expenses, questioning the justification for such significant expenditure while simultaneously considering cuts to public services.
Graham Smith, chief executive of Republic, has voiced concerns about the financial arrangements surrounding the Royal Family, arguing that the current system is opaque and inefficient. He suggests that the Royal Family’s finances should be more transparent and proposes a more commercially viable model, pointing out that royal residences could potentially generate £96 million annually in commercial revenue.
Republic criticizes the use of the duchies of Lancaster and Cornwall to support the King and the Prince of Wales, claiming that this results in an annual loss of £99 million to the public treasury. The group advocates for a more modest approach to funding the monarchy, suggesting that the annual cost should be reduced to between £5 million and £10 million, with King Charles receiving a salary of £189,000, adjusted to the prime minister’s pay.
Despite these criticisms, government funding for the Royal Household is set to increase in the coming years. The latest figures for the Sovereign Grant, released in July, indicate that funding will remain at £86.3 million for 2024-25 but will rise to £132 million in 2025-26, driven by higher earnings from offshore wind farms. This increase has fueled further debate about the cost of the Royal Family and the need for greater transparency and accountability in its financial management.
