This year has seen some rejigging of royal financing, such as The Queen’s expected £6m increase in funds from the Sovereign Grant, and amongst the new changes in incomes and expenditures, it would seem that His Royal Highness the Prince of Wales will also see a healthy injection of funds.
Much of the Prince of Wales’s income comes from his estates in the Duchy of Cornwall, the profits of which he is fully entitled to, and His Royal Highness also pays a voluntary income tax of 45% after business costs. According to new accounts released by his annual accounts, Prince Charles can expect to enjoy an additional £600k to his funding, in addition to a generous tax break on his assets within the Duchy of Cornwall, which has been reduced by 5.1% to just £4.1m per annum. The latter was simply because his business costs were higher this year than they were last year. In total, the Prince’s income has increased from £21.9m to £22.5m a year from 2015-2016.
Additional funding is also provided by the Sovereign Grant; however, that only provides a small portion of the British monarchy’s overall expenses.
The Duchy of Cornwall offers over £160m in funding for a wide array of charities and generally strives to be as self-sufficient as possible. 100% of the electricity used by the Prince’s household is produced by renewable means, and his own range of organic food products — Duchy Originals — has an annual profit of £200m. It also covers and protects 67,000 acres of Dartmoor.
The Prince is also responsible for financing, not just himself and the Duchess of Cornwall, but also the finances and upkeep of the Duke and Duchess of Cambridge and their family, as well as Prince Harry. Their expenses are listed as “Other Expenditures.”
The increase in funding provides, as well as for the Prince and his family’s personal needs, funds necessary for them to preserve and maintain their stations. Most of the Royal Family’s funding goes towards the upkeep of historical palaces and buildings and the wages of their staff, and it is also used to fund Royal Family member’s duties on behalf of the United Kingdom, particularly travel expenses abroad.
Over the next couple of years, the British Royal Family can expect to see increased ambassadorial duties as Britain seeks to forge closer international ties in the wake of its withdrawal from the European Union, especially in current member states where the British government hopes to maintain strong economic links. By the start of 2018, members of the Royal Family will have already visited France, Germany, Italy, Belgium and Poland, and Her Majesty will also receive King Felipe VI and Queen Letizia of Spain during their state visit to the United Kingdom. Visits such as this help cultivate the personal ties between nations that may prove invaluable to the United Kingdom as it removes itself from its former EU connections.