The British government is set to slash the monarchy's public funding by nearly £38 million. The Sovereign Grant Bill 2026-27 proposes cutting the amount allocated to King Charles III from £137.9 million in 2026/27 to £99.9 million in 2027/28. This reduction comes directly on the heels of the completed, high-cost refurbishment programme at Buckingham Palace.
The grant, introduced in 2012/13 to replace the Civil List, covers the maintenance of occupied royal palaces, official travel, and Royal Household salaries. It is not a pocket for private spending but a budget for public duties. Yet, even after this proposed cut, the 2027/28 figure would remain 65% higher in real terms than the funding levels seen in 2016/17, before the palace's major reservicing began.
While the King's public purse tightens, the financial footprint of the heir to the throne remains massive. Prince William, the 25th Duke of Cornwall since 2022, commands an estate valued at approximately £1.2 billion. According to The Mirror, the Duchy of Cornwall generated £21.6 million in private income for William in 2025-26. This contrasts with King Charles’ personal fortune, estimated at £640 million by the Sunday Times Rich List, which has grown by £30 million in the last year.
Tax obligations for the senior royals are a matter of voluntary agreement rather than strict legal mandate. Since 1993, the King and his heir have voluntarily paid income tax on Duchy income and personal investments. William paid £7.76 million in income and capital gains tax in 2024-25. He has also taken a peculiar financial step: redirecting the £1.5 million annual rent from the Dartmoor Prison lease to community regeneration projects rather than keeping it as personal income.
The Sovereign Grant Bill must now pass through Parliament. If approved, it will formalize the funding drop and introduce a mechanism to prevent future 'inappropriately high' allocations. The next major review of the grant’s calculation is scheduled to begin in 2026.