Sovereign Grant Bill

Andrew Murrison Excerpts

2nd reading
Monday 14th September 2026 Commons Chamber

[Torsten Bell]

The hon. Member has shown interest in this topic over many years, in a lot of different environments. This is a question of “and”, rather than “or”. As he says, the document spells out that His Majesty is the Supreme Governor of the Church of England. I encourage him to go on to the royal family’s website, where he will see the language about the King being the defender of the faith very prominently displayed. I hope that gives him the reassurance that he seeks.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

We are extremely fortunate to have a monarchy, particularly this monarchy. Since the reign of George III, the profits from the Crown Estate have accrued to the Treasury; in return, the institution of the monarchy receives a grant, which we are debating today. Part of that is an annually determined proportion of the profits. However, for things other than exceptional expenditure, such as on Buckingham Palace, the institution presumably requires some sort of stability and certainty about the receipts necessary to carry out its functions. Is it logical for the grant to be a proportion of profits, which will inevitably vary year by year, because they are a commercial matter?

[Torsten Bell]

I think everybody in this House will agree with the thrust of what the right hon. Gentleman successfully argues. A royal household with an important role, both as the sovereign, and in maintaining an estate of grade I listed monuments, needs certainty about its income. It is not for me to defend the previous Government, but the 2011 Act provided two bases for funding. The first is the mechanism that he mentioned, relating to a proportion of the profits of the Crown Estate. The second is a proviso that there be no fall, from year to year, in the amount of the grant. That is to provide exactly the stability that he talks about. That is why we are taking forward this primary legislation, with that dual lock. The reduction this year is purely to take into account the bringing to an end of the Buckingham Palace 10-year repair project. The legislation then provides an ongoing commitment to the royal household and the monarch that the grant will remain at next year’s level, at least. I hope that offers the right hon. Gentleman reassurance.

As I was saying, a key point of context is that Parliament agreed a temporary uplift to the grant from 2017-18 to 2026-27 to fund the Buckingham Palace reservicing programme. That was a major 10-year investment to modernise ageing infrastructure, replace critical electrical and mechanical systems, and safeguard the long-term future of one of the nation’s most historic buildings. As that programme nears completion, it is time for the level of funding to be reassessed. Earlier this year, the then royal trustees completed the latest review and considered both the royal household’s projected expenditure and the Crown Estate’s projected revenues for the period from 2027 to 2032. The trustees concluded that with the Buckingham Palace reservicing programme nearing completion, the exceptional funding requirements that justified that temporary uplift no longer exist. They therefore recommended that the sovereign grant should fall from £137.9 million in 2026-27 to £99.9 million in 2027-28. That represents a reduction of almost £38 million, or more than a quarter.

At the same time, the trustees recognised that the royal household continues to face operational pressures in delivering what we all think of as crucial work. The recommended amount of funding will enable the household to address a maintenance backlog that was exacerbated by the pandemic, and to replace ageing digital infrastructure to strengthen cyber-security. The grant provided for by this Bill ensures value for money for taxpayers, and that the royal household can continue to discharge its crucial functions effectively.

This Bill delivers a fair and proportionate funding settlement. It reduces the amount of the sovereign grant, following the completion of a major capital programme; it improves the resilience and sustainability of the statutory framework established in 2011, while maintaining parliamentary oversight; and it ensures that the sovereign grant can continue to fulfil its core purpose, which is supporting the official duties of the monarch and maintaining the occupied royal palaces on behalf of the nation. On that basis, I commend this Bill to the House.