Sovereign Grant Bill

Neil Duncan-Jordan Excerpts

2nd reading
Monday 14th September 2026 Commons Chamber

[Neil Duncan-Jordan (Poole) (Lab)]

As I said during the ways and means debate last week, I welcome the Government’s decision to bring forward this legislation to make it possible for the sovereign grant to be reduced in future if necessary, and to return any unspent grant more quickly. I am grateful to the Exchequer Secretary for his letter this morning, which covered some of the points that I made in that debate. Today’s Bill feels like a missed opportunity, especially as a number of issues surrounding the grant remain to be addressed by the Government.

The first issue is the link between the grant and the profits of the Crown Estate. Members will know that the Crown Estate commands a massive £16 billion portfolio, owning much of our coastline and the corresponding seabed, but it is not the private property of the monarch, nor do the revenues from the estate belong to them. In fact the Crown Estate is quite separate from the monarchy, and operates to generate revenue for the Treasury. The implication of the current arrangement is that the monarch forgoes his profits from the Crown Estate in return for a payment of a percentage via the sovereign grant, yet all the profits are public funds. That is an odd form of indexation, and raises the question of why the grant is not based on the needs of the monarchy or its costs. It would have been better if the Bill broke the link to the Crown Estate and gave power to the royal trustees to decide the appropriate figure, based on need.

That raises the second question of how the grant should be set. I believe that it should be done on an annual basis, and that it is important for the funding of the monarchy to be transparent and open for MPs to debate. All public funds should rightly be open to scrutiny and parliamentary oversight. On numerous occasions I have tried to table questions about these issues, only to be told that this is not something for Parliament to discuss. That must change, and that is why I will support amendment 1.

The Bill calls for a substantial increase in the grant, and a rise from 12% of the Crown Estate profits to 20.5%. However, the royal family is smaller than it was in 2011, when the grant was first introduced, and the King and the Prince of Wales are said to favour a slimmed-down monarchy. It would appear that the anticipated increase to £99.9 million is not based on any assessment of need, and I should appreciate it if the Minister explained exactly how we have arrived at a figure that is 322% higher than it was when it was first introduced in 2012. Even allowing for inflation and the building maintenance programme that has been mentioned, the proposed grant is well over twice the real value of its starting point. As I mentioned during the ways and means debate, there are also some anomalies when we look at the monarch’s wider financial arrangements. Why, for example, is no account taken of the profits of the Duchy of Lancaster when the level of the sovereign grant is being set?

Ideally, Madam Deputy Speaker—I can see that you are very keen to bring me to book—we should have before us a Bill to ensure that the amount of the sovereign grant is appropriate to the relative needs of the monarch, and that Members of Parliament are not restricted to just approving a new percentage figure once every five years, via an arbitrary and unnecessary link to the Crown Estate. The Bill is, in my view, a missed opportunity to modernise the monarchy. I look forward to hearing the Minister’s comments.