Sovereign Grant Bill

Caroline Nokes Excerpts

2nd reading
Monday 14th September 2026 Commons Chamber

[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.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

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[Brian Leishman (Alloa and Grangemouth) (Lab)]

My sense of patriotism does not come from a flag, an anthem or the royal family. Instead, my patriotism comes from things like our national health service; movements such as that of the Levellers, who were committed to popular sovereignty, extended suffrage, equality and religious tolerance; and how Britain stood up to and defeated the evil of fascism, both abroad during the second world war and at home in places like Cable Street, where Jewish residents, Irish dockers, trade unionists, socialists and others united to stop the British Union of Fascists movement from marching through Jewish neighbourhoods. That is the sort of patriotism I love.

I have the utmost respect for any citizen who believes that the royal family is a fundamental part of British life. I have no issues with that opinion; people are entitled to it, but it is simply not one that I share. There were many reasons why I joined the Labour party. One was to change—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I am sure that the hon. Gentleman is expecting this, but it is important that he focuses his remarks on the Sovereign Grant Bill, and not wider issues to do with the monarchy, patriotism or why he joined the Labour party.

[Brian Leishman]

I will just put a red pen—a very dark red pen, obviously—through some of the comments that I wished to make. I will accelerate my remarks. It is clear that we are a nation of persistent inequality. I fully appreciate that the role of the royal family is way down the list of pressing issues that my Government have to deal with, but when looking at the intense suffering that millions of people are experiencing, I cannot help but feel that the sovereign grant money could and should be directed elsewhere, and not to a family worth an estimated £21 billion.

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[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Bobby Dean (Carshalton and Wallington) (LD)]

The Liberal Democrats understand the purposes of this Bill and accept some of the Government’s conclusions about how the grant needs to change, but we continue to be concerned about transparency. It is important to make it clear at the start that the sovereign grant provides no personal income to the King or Queen or any member of the royal family; the funding is tied entirely to the running of the institution. We recognise that the household’s budget has increased, but the bulk of that increase is earmarked for a maintenance backlog across the royal palaces, green infrastructure, and cyber-security in an increasingly hostile international landscape. We agree that it is right for the grant to be reset now that the Buckingham Palace programme has finished. However, taxpayers will rightly have questions about where and, importantly, who this money goes to. The Government must ensure that not a penny of this grant goes to Andrew Mountbatten-Windsor, who disgraced his title in office —

[Madam Deputy Speaker (Caroline Nokes)]

Order. I reiterate that we are going to stick to the scope of the Sovereign Grant Bill, which is very specifically only about the amount of the sovereign grant and how it is to be determined in future years. The hon. Gentleman will be aware that the grant goes to the King.

[Bobby Dean]

Thank you, Madam Deputy Speaker. I will move directly on to our amendment, which would insert a new subsection stopping the royal trustees from proposing any future increase to the percentage of Crown Estate profit used in the grant formula unless three conditions are met first: the National Audit Office must be commissioned to carry out a value-for-money assessment of the proposed change—

[Madam Deputy Speaker (Caroline Nokes)]

Order. Apologies, and I appreciate that I am now leaping to my feet with monotonous regularity, but it would be more appropriate for the amendment to be discussed in Committee than on Second Reading.

[Bobby Dean]

Clearly, I have been very well briefed. I think my comments at the beginning were probably sufficient. We understand the purpose of the Sovereign Grant Bill. We have some concerns about transparency, but I will return to those later.