Financial reports 2022-23

The Sovereign Grant is the funding provided to support the official duties of The Sovereign and maintain the Occupied Royal Palaces. It also includes a dedicated amount to fund the ten-year Reservicing of Buckingham Palace, now in its seventh year - a major overhaul of essential building services to ensure the Palace is protected for future generations.

This year’s statement covers a period of significant transition for the Royal Household, reflecting the Platinum Jubilee and State Funeral of Queen Elizabeth II, the Accession of The King, the lead up to Their Majesties’ Coronation, and the coming together of staff from two Households.

You can download the documents using the following links:

The Sovereign Grant and Sovereign Grant Reserve Annual Report and Accounts 2022-23 (130.28 KB)

Sovereign Grant Report 2022-23(1.37 MB)

Sovereign Grant Report 2022-23 - Royal Travel Appendix (159.06 KB)

The key financial details reported today are:

• The total Sovereign Grant for 2022-23, amounted to £86.3 million (2021-22: £86.3 million), which is made up of a core grant of £51.8 million which funds official travel, property maintenance and the operating costs of The Sovereign’s household. The core grant equates to 77p per person in the UK.
• The Sovereign Grant for 2022-23 includes an additional dedicated amount for Reservicing of £34.5 million.
• The total Sovereign Grant for 2022-23 of £86.3 million, which remains unchanged from last year is equivalent to £1.29 per person in the UK.
• Income earned to supplement the Sovereign Grant was £9.8 million, a decrease of 1% from £9.9 million (2021-22). The figure is less than 50% of pre-pandemic levels.
• Official expenditure was more than the Sovereign Grant and the supplementary income earned, with net expenditure of £107.5 million, a 5% increase on the previous year due to significant work relating to the Reservicing of Buckingham Palace and the costs associated with the change of Reign, as well as the impact of the Consumer Price Index rising by 10.1%.
• These costs saw the Sovereign Grant reserve reduce by £20.7 million in the year 2022-23.

Other details in the 2022-23 report include:

• Members of the Royal Family undertook over 2,700 engagements across the United Kingdom and overseas, with Their Majesties travelling to Germany for the first State Visit of The King’s reign.
• Over 95,000 guests were welcomed to the Official Residences in recognition for their contribution to society, attending over 330 events including Receptions, Investitures and Garden Parties.
• Targeted initiatives across the Occupied Royal Palaces have resulted in a 19% decrease in natural gas and heating emissions.
• The Reservicing Programme continued at pace at Buckingham Palace, which has played a central role in the events of the last twelve months. Significant work that has been completed includes key operational spaces in the West Wing and the West Gallery, as well as two new lift shafts and guest WCs in the East Wing, which will help make the Palace more accessible.
• 2022-23 marked the busiest year on record for incoming post, with Buckingham Palace receiving 183,207 items of correspondence.

Reflecting on the year 2022-23, the Keeper of the Privy Purse, Sir Michael Stevens, said:

“The year covered in today’s report represents an exceptional period of transition for the Royal Household. As we look back on those twelve months, we reflect on how the nation came together to celebrate the Platinum Jubilee of Queen Elizabeth II in June, and to mourn Her Late Majesty in September while marking the Accession of The King, as well as the months of preparation leading up to Their Majesties’ Coronation.

“In addition to these historically significant moments, this year saw the return of many events that had been missing from the calendar throughout the pandemic, including Garden Parties, Maundy, Garter, and of course the first inward and outward State Visits of The King’s reign. More widely, the Household has adjusted to supporting the full and busy programmes of Their Majesties, following a period during which in-person engagements were not possible.

“Like other organisations, the Royal Household has not been immune to the impacts of the joint challenges of the pandemic and inflationary pressures, which have resulted in a flat Sovereign Grant. The figure for the year remained unchanged at £86.3 million, with a significant proportion funding the Reservicing of Buckingham Palace, which is now in its seventh year. This figure will remain unchanged at £86.3 million for the year 2023-24.”

Background

1) The Sovereign Grant Act 2011 came into effect from 1 April 2012 and consolidated the funding provided to support the official duties of The Sovereign and maintain the Occupied Royal Palaces. Until 31 March 2012, funding had been provided under the Civil List and the Grants-in-aid for the Maintenance of the Occupied Royal Palaces, Royal Travel and Communications and Information.

2) The Sovereign’s official expenditure is met from public funds in exchange for the surrender by The Sovereign of the revenue from the Crown Estate. The core Sovereign Grant is calculated based on 15% of the income account net surplus of the Crown Estate for the financial year two years previous. The Crown Estate surplus for the financial year 2020-21 amounted to £269.3 million, thereby producing a core Sovereign Grant of £51.8 million for 2022-23.

3) In November 2016 the Royal Trustees agreed that from 2017-18, the Sovereign Grant would be calculated based on 25% of the income account net surplus of the Crown Estate for the financial year two years previous, with the additional 10% to be used to fund the Reservicing of Buckingham Palace over a period of ten years. This recommendation was approved by Parliament in March 2017.

4) Further information about the Reservicing of Buckingham Palace can be found here.