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London (CNN Business) The coronavirus pandemic is slamming the vast property empire that provides Queen Elizabeth II with a significant chunk of her income. British taxpayers could be making up the shortfall for years to come.
Sir Michael Stevens, the Queen’s treasurer, confirmed in a statement on Friday that the size of the Sovereign Grant, one of the royal family’s major sources of income, won’t be affected by an expected slump in profits from the Crown Estate’s investments.
The Sovereign Grant is a lump sum payment from the government that covers official travel, staff costs and palace expenses. The grant is generated from the Crown Estate, a real estate company that boasts a sprawling collection of farmlands and prime central London property. Most earnings from the Crown Estate go into government coffers, but 25% are paid out by the government to the Queen in the form of the Sovereign Grant.
Last week, the Crown Estate reported a record profit of £345 million ($440.2 million) for the year to March 2020, but warned that earnings for the fiscal year to March 2021 will be “significantly down” on that amount due to the impact of the pandemic on its portfolio.
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