King hands wind farm profits back to the nation
‘It is the King’s wish that this windfall be directed for wider public good, rather than to the Sovereign Grant’
THE King has turned down the opportunity to boost palace funding, opting instead to donate millions of pounds of wind farm profits to the nation.
The monarch has declared that the Crown Estate profits from six lucrative offshore wind projects should go into Treasury coffers, with none of it going to the Royal household.
The Sovereign Grant that the King receives to fund his official duties is based on the profits of the estate, a £15billion land and property empire run as an independent business.
It comes after the Crown Estate announced an energy deal that will generate gross revenues of £1billion a year for at least three years.
The six wind projects, three of which are located off the North Wales, Cumbria and Lancashire coasts, and three in the North Sea off the Yorkshire and Lincolnshire coasts, will generate enough renewable electricity to power more than seven million homes.
A Buckingham Palace spokesman said: “In view of the offshore energy windfall, the Keeper of the Privy Purse has written to the Prime Minister and Chancellor to share the King’s wish that this windfall be directed for wider public good, rather than to the Sovereign Grant, through an appropriate reduction in the proportion of Crown Estate surplus that funds the Sovereign Grant.”
It means a likely reduction in the percentage of Crown Estate profits allocated to the Sovereign Grant for the first time since the current system was introduced more than a decade ago. However, there is legal provision to ensure the Sovereign Grant cannot decrease. As wider Crown Estate profits are likely to have risen, there is every chance that the Sovereign Grant will, too.
His Majesty is said to favour a “slimmed down” monarchy and during the first few months of his reign has repeatedly expressed concern about the cost of living crisis. The Crown Estate will receive around £1billion annually during the construction phase of the project, which could take up to 10 years. After that, it will receive an annual rent partly based on its revenues.
Wind farm operators benefiting from government subsidies have been accused of profiting from the energy crisis as the amount they are paid for power is pegged to record gas prices.
Dan Labbad, chief executive of the Crown Estate, said: “The UK’S offshore wind achievements to date are nothing short of remarkable.”
The Royal household will still receive profits from its previous deals leasing the seabed to wind farm developments.
Crown Estate profits are passed to the Treasury, which then gives a percentage back to the Royal household in the form of the Sovereign Grant. That percentage currently stands at 25 per cent, equating to £86.3million in 2021-22.