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The Royal Family Is Predicting a Budget Shortfall, But They Promise Not to Ask for More Money

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It’s that time of year...and by that we mean it’s the time when the royal family opens up their accounting books for the public to see.

Yesterday, Queen Elizabeth's Keeper of the Privy Purse (aka her treasurer) detailed the household’s expenditure in a handful of financial documents. And while these reports are disclosed annually, this year it was done three months late due to the coronavirus pandemic. While they usually remain focused on the finances from the fiscal year, this time the reports also focused on the future, specifically, how the family will deal with the challenging times ahead. Unsurprisingly, they’re expecting a drop in income. 

“While the report highlights another busy year, it fails to give an accurate picture of the financial challenges we now face over the next few years brought about by Covid-19,” Treasurer Sir Michael Stevens said in an official statement. “We have no intention of asking for extra funding and will look to manage the impact through our own efforts and efficiencies.”

If you didn't know, Queen Elizabeth and the rest of the royal gang receive money from something called the Sovereign Grant. Per the Royal Family website, funding for the grant comes from a percentage of the profits of the Crown Estate revenue (a collection of lands and holdings in the territories of England, Wales and Northern Ireland). However, the Evening Standard adds, that the queen received a raise from an increase in taxes, which also comes from the SG and is the portion of her money paid by taxpayers. 

So, what exactly does this mean for Her Majesty? While the sum she receives can’t go down (according to the Sovereign Grant legislation), the 94-year-old monarch will most likely not receive the annual increase that she usually does. And according to Town & Country, the royal household has been put on a recruitment freeze and pay freezes have been implemented as well. 

Even with all of this uncertainty, the palace remains optimistic. “Although Covid-19 has temporarily changed the format of engagements and events, it has not changed the sense of continuity, reassurance and recognition they provide,” Stevens continued. “Her Majesty’s programme, supported by Her family, will continue to develop meaningful ways to lead the nation through this time.”

For more information on the royal family’s annual finances, visit here

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