The coronavirus pandemic is slamming the huge property empire that gives Queen Elizabeth II with a major chunk of her earnings. British taxpayers may very well be making up the shortfall for years to come back.
Michael Stevens, the Queen’s treasurer, confirmed in a press release on Friday that the scale of the Sovereign Grant, one of many royal household’s main sources of earnings, will not be affected by an anticipated hunch in income from the Crown Property’s investments.
The Sovereign Grant is a lump sum fee from the federal government that covers official journey, employees prices and palace bills. The grant is generated from the Crown Property, an actual property firm that boasts a sprawling assortment of farmlands and prime central London property. Most earnings from the Crown Property go into authorities coffers, however 25% are paid out by the federal government to the Queen within the type of the Sovereign Grant.
Final week, the Crown Property reported a document revenue of £345 million ($440.2 million) for the 12 months to March 2020, however warned that earnings for the fiscal 12 months to March 2021 shall be “considerably down” on that quantity as a result of impression of the pandemic on its portfolio.
A lot of central London was become a ghost city earlier this 12 months because the lockdown stored tens of millions of employees, consumers and vacationers away. Exercise was starting to choose up over the summer season months however new restrictions launched this week to fight a second wave of the virus are anticipated to dent that restoration.
However the Queen will not be taking a pay lower even when earnings falls on the Crown Property this 12 months. The way in which that the grant is calculated signifies that she is going to obtain her share of £345 million — £86.three million ($110 million) — within the 12 months to March 2022. Her payout may also stay at that degree in future years, even when the Crown Property’s revenue stays beneath strain, as a result of the legislation governing the grant doesn’t permit it to fall in absolute phrases.
“Within the occasion of a discount within the Crown Property’s income, the Sovereign Grant is about on the similar degree because the earlier 12 months,” a Treasury spokesperson instructed CNN Enterprise. “The Sovereign Grant funds the official enterprise of the Monarchy, and doesn’t present a personal earnings to any member of the royal household,” the spokesperson mentioned.