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Queen Elizabeth takes $45m hit in income due to coronavirus pandemic


Queen Elizabeth takes $45m hit in income due to coronavirus pandemic


The royal family releases its financial records every year to demonstrate how it has spent public money, and this year is no different. Although, like with everything else in the midst of a worldwide pandemic, the release of the Sovereign Grant report in 2020 seems to be quite different from previous years.

The United Kingdom’s Queen Elizabeth II and her family are facing a 35 million pound ($45 million) blow from the coronavirus epidemic, owing in part to a lack of visitors, according to the monarch’s money manager.

Royal treasurer Sir Michael Stevens, commonly known as the Keeper of the Privy Purse, delivered the royal family’s 2019-20 financial report on Friday. While the bulk of the expenses are from before the global health crisis erupted, he did explain how the pandemic would have a long-term impact on the British royal family’s revenue.

For starters, when The Queen’s Treasurer reported the royal household’s spending three months later than normal. And, rather than concentrating only on data from the fiscal year covered by the most recent report (April 2019 to March 2020), the narrative has changed to what is happening now, as we are pushed into these unusual circumstances.

The pandemic’s effect is also expected to result in a 20 million pound ($25.4 million) deficit in a 10-year, 369 million pound ($469 million) initiative to repair outdated heating, plumbing, and electrical at Buckingham Palace, the queen’s London residence.

Officials have said that the palace’s old infrastructure, which had its last significant update after World War II, is in danger of failing catastrophically if not rebuilt.


According to Stevens, a lack of revenue from visits to royal palaces would result in a general budget deficit of 15 million pounds ($19 million) over three years.

“While the report highlights another busy year, it fails to give an accurate picture of the financial challenges we now face over the next few years brought about by Covid-19,” Treasurer Sir Michael Stevens said. He went on to say that the household’s income would be lower than expected for the next several years at the very least, and that “we have no intention of asking for extra funding and will look to manage the impact through our own efforts and efficiencies.”

Stevens said that the royal family would not seek more government funding, but would instead “look to manage the impact through our own efforts and efficiencies.”

“If we look at our core Sovereign Grant and the income that we generate to supplement the Sovereign Grant, both of which support the official duties of The Queen, we are expecting a significant reduction in income from the Royal Collection Trust due to the impact Covid-19 has had on their visitor numbers,” Stevens said. “This forms the bulk of a projected shortfall in income, which we estimate will be around £5 million per year for the next three years.”

In a simple sense, this is an excellent stance—an example of a “we’re all in it together” mentality that the royal family must represent in these trying times.

Buckingham Palace has already implemented a salary restriction and a hiring freeze.

According to the documents, the monarchy cost British taxpayers 69.4 million pounds ($88.2 million) in the fiscal year ending March 31, a 2.4 million ($3.1 million) rise over the previous fiscal year.

The Sovereign Grant is a single amount that the Queen gets from the UK Treasury each year to fund the monarchy’s official expenditures, which include everything from holding garden parties and investitures to paying for personnel, royal travel, and the maintenance of royal residences.

The records also reveal that Prince Harry and his wife, Meghan, paid an unknown amount to the public purse to compensate them for the rent and renovation of their Frogmore Cottage residence near Windsor Castle. The precise amount will be disclosed in the financial statements for the next year. The home’s remodeling expenditures alone totaled 2.4 million pounds ($3.1 million).

Meghan and Harry stated earlier this year that they would be stepping down as senior members of the royal family. The couple’s intentions to split their time between the UK and North America were mentioned in the statement.

Moreover, despite the projected deficit, work continues—both by royal family members and on palace maintenance. According to a senior source, they will have to “think about how we are going to bridge that shortfall over the next seven years of the project,” but significant construction work is already beginning to replace critical utilities in the East Wing.

Stevens concluded that, despite the numerous changes brought about by the pandemic, the royal family’s commitment to people in the United Kingdom has not altered.

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