Offshore wind: King Charles can look forward to a windfall

2023-07-20 20:05:27

Offshore wind King Charles can look forward to a windfall

King Charles III has a lot of money available. photo

© Jacob King/PA Wire/dpa

Actually, the proportion of income from the “Crown Estate” should decrease. Nevertheless, the British king can look forward to a subsidy to his budget. how come

The British King Charles III (74) can look forward to a generous subsidy to his budget for public spending (“Sovereign Grant”) in the coming years – even though he has to cut back on a percentage.

According to a document, the proportion of income that the royal family is entitled to for the maintenance of castles, travel, receptions and the like from the real estate and land portfolio known as “Crown Estate” is to fall from 25 to 12 percent.

However, because significant additional income is expected from leasing contracts from offshore wind farms, the royals are expected to get off almost £40 million (about EUR 46 million) better than before in 2025 and 2026. In the current year, the “Sovereign Grant” amounted to 86.3 million pounds. Without the cut that has now been decided, this amount would have risen to 260 million, as the PA news agency calculated.

Money comes at the right time

In addition to a substantial portfolio of land and real estate holdings, the Crown Estate also manages Great Britain’s rights to the seabed around the country’s coast, known as the continental shelf. Therefore, the conclusion of leasing contracts for the construction of offshore wind farms falls within the sphere of the company.

The king may need the extra money. Because royal spending has increased significantly over the past year, as the palace’s annual financial report recently revealed. As a result, they rose by £5.1m or 5 per cent to £107.5m in the 2022/23 financial year.

Royal advisors blamed the change of throne after the death of Elizabeth II as well as inflation and the ongoing costs of the years of renovation of Buckingham Palace. The difference between “Sovereign Grant” and expenses had to be bridged with reserves. This should no longer be necessary in the coming years.

dpa