The annual report on government financial assistance, revealed on Thursday, covers fiscal year 2022/23. The increase in expenses resulting from royal family residential developments and the payment of maintenance costs for the crown and throne from the pockets of taxpayers and ordinary people in England has led to an increase in protests. Recently published royal accounts show how the royal family used taxpayers’ money throughout the year.
This year, the royal family incurred expenses including the renovation of Buckingham Palace, the funeral procession of Queen Elizabeth II, and preparations for King Charles III’s coronation. During the 2022/23 period, the royal family’s total expenses reached £107.5 million, indicating a 5% increase compared to the previous year. This amount exceeded the allocated budget, which is approximately equivalent to £1.29 per person in the UK. The publication of these accounts has led to increased public protests and a thorough examination of royal family expenses. It has also raised questions about budget allocation, particularly considering Britain’s cost of living pressures.
What are the royal family’s taxpayer costs?
The year has been momentous for the Royal Family. This was highlighted by the coronation of King Charles III on May 6, which drew thousands of individuals to central London to witness this historic event.
However, even the monarchy is currently facing financial constraints, as their expenditures have exceeded the allocated Sovereign Grant by nearly £21 million.
Various factors have influenced the Royal Family’s expenses, including inflation, the King’s ascension to the throne. These factors include additional costs associated with the Queen’s funeral, and the ongoing renovation of Buckingham Palace.
In the financial year 2022-2023, the Royal Family received the same amount of £86.3 million from the Sovereign Grant as they did in the previous year (2021-2022). However, due to the ongoing refurbishment project at Buckingham Palace, which costs £369 million, the expenses related to King Charles’ succession, and higher-than-expected inflation, their total expenditure for that period reached £107.5 million.
The largest expenditure for the Royal Family was allocated to property maintenance, amounting to £57.8 million. Payroll costs followed closely behind, totaling £27.1 million. Additionally, travel expenses accounted for approximately £3.9 million, while utilities and housekeeping costs reached £4.5 million and £2.4 million, respectively, during this period. This represents a 5% increase compared to the £102.4 million spent in the previous year. To cover the deficit caused by spending exceeding the Sovereign Grant, reserves of £20.7 million were utilized.
The sovereign grant for 2022-2023 equates to approximately £1.29 per person in the UK. This grant is composed of two components: the Core Grant, funded by taxpayers, which amounts to £51.8 million, and an additional dedicated amount of £34.5 million allocated for reserve purposes. These figures shed light on the financial support provided by taxpayers to sustain the Royal Family’s operations during the specified period.
Are members of the Royal Family required to pay taxes?Â
In 1992, Queen Elizabeth voluntarily began paying income tax and capital gains tax on her personal income, a practice King Charles continues. While the two duchies are exempt from corporation tax, both the King and the Prince of Wales voluntarily pay income tax on the revenue generated by these duchies.
However, members of the Royal Family do not pay capital gains tax since they do not personally benefit from any increase in the duchies’ assets.
They must pay taxes on income derived from privately owned assets.
Additionally, King Charles is not required to pay inheritance tax on the money he receives following Queen Elizabeth’s passing. This exemption is based on the “sovereign to sovereign” agreement established in 1993 under Prime Minister John Major.
Conclusion
The recently published royal accounts shed light on how the Royal Family has utilized taxpayers’ money throughout the year. The annual report on the sovereign grant, disclosed on Thursday, covers the financial year of 2022/23 and reveals that the British taxpayer contributed £86.3 million to support the Royal Family. This amount remains consistent with the previous year, equivalent to £1.29 per person in the UK.
However, the total net expenditure of the royal household reached £102.4 million, indicating a significant 17% increase from the previous year. This exceeds both the sovereign grant and any additional income generated, such as that from the King’s private estate, the Duchy of Lancaster.
The Royal Family faced various financial commitments during this period, including the ongoing renovation of Buckingham Palace, expenses associated with the Platinum Jubilee celebrations, the funeral of Queen Elizabeth II, and preparations for the coronation of King Charles III. These factors contributed to the increased expenditure.
The release of these accounts has sparked public interest and scrutiny regarding the Royal Family’s expenses. It has also raised questions about the allocation of funds, especially considering the cost-of-living pressures in Britain.
Additionally, the Duke and Duchess of Sussex have officially vacated Frogmore Cottage after repaying the £2.4 million spent on its refurbishment. The identity of the new tenants remains undisclosed, and concerns have arisen about the utilization of other unoccupied royal residences. There has been particular focus on Prince William’s housing situation in relation to his homelessness initiative.
The financial year of 2022-2023 presented unique circumstances for the Royal Family, featuring increased expenditures and residential developments that have drawn public attention and scrutiny. It has also raised questions about budget allocation, particularly given Britain’s high cost of living. Public protests over the publication of these accounts have led to several investigations into royal family expenses.
