The coronavirus pandemic is slamming the huge property empire that gives Queen Elizabeth II with a major chunk of her earnings. British taxpayers could possibly be making up the shortfall for years to return.
Michael Stevens, the Queen’s treasurer, confirmed in an announcement on Friday that the dimensions of the Sovereign Grant, one of many royal household’s main sources of earnings, will not be affected by an anticipated hunch in earnings from the Crown Property’s investments.
The Sovereign Grant is a lump sum fee from the federal government that covers official journey, workers 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 file revenue of £345 million ($440.2 million) for the yr to March 2020, however warned that earnings for the fiscal yr to March 2021 shall be “considerably down” on that quantity as a result of influence of the pandemic on its portfolio.
A lot of central London was become a ghost city earlier this yr because the lockdown saved tens of millions of employees, customers and vacationers away. Exercise was starting to choose up over the summer time 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 reduce even when earnings falls on the Crown Property this yr. The way in which that the grant is calculated implies that she is going to obtain her share of £345 million — £86.three million ($110 million) — within the yr to March 2022. Her payout can even stay at that degree in future years, even when the Crown Property’s revenue stays beneath strain, as a result of the regulation governing the grant doesn’t enable it to fall in absolute phrases.
“Within the occasion of a discount within the Crown Property’s earnings, the Sovereign Grant is ready on the similar degree because the earlier yr,” a Treasury spokesperson informed 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 stated.