The Royal Family receives Government funding in order to carry out its official work. Since 2011, the monarchy has received this money via something called the Sovereign Grant. The amount the Royal Family receives each year is loosely connected to the Crown Estate, which is the Firm’s property portfolio.
What is the Crown Estate?
The Crown Estate is a private portfolio of land and properties owned by the Crown.
100 percent of the profits raised by the Crown Estate go to the treasury each year.
In 2011, a new model of Royal Family funding was introduced by George Osborne and the Coalition Government.
While the treasury calculates how big the Sovereign Grant should be based on Crown Estate profits, if Crown Estate profits do not increase one year, the monarchy receives the same amount as it did in previous years anyway.
Republic tweeted: “It was George Osborne and the Coalition government who, in 2011, invented the Sovereign Grant and created a link to Crown Estate profits.
“But the link is nothing more than a calculation the treasury makes to determine how big the grant should be.
“And it’s only a ratchet clause. If Crown Estate profits fall the grant remains the same as previous years.
“If Crown Estate profits rise then the size of the grant goes up.
“Not because any case has been made for the royals having a bigger budget, but because George Osborne decided to link the grant to a state property portfolio.”