Overview

The Sovereign Grant Bill aims to modernize the funding of the British monarchy, replacing the existing Civil List system with a Sovereign Grant. This grant will be calculated annually based on a percentage of the Crown Estate's profits, providing a more transparent and predictable source of funding for the Royal Household.

Description

The bill establishes a Sovereign Grant, paid annually by the Treasury to the monarch to fund the Royal Household's official duties. The initial grant for 2012-13 was set at £31 million. Subsequently, the Royal Trustees determine the yearly amount, calculated as 15% of the Crown Estate's income account net surplus from two years prior, subject to adjustments. A Reserve Fund is created to manage fluctuations in annual funding needs. The bill also repeals several outdated financial provisions related to allowances and pensions under the Civil List Acts of 1837 and 1952. It outlines accounting procedures for the Royal Household and the Reserve Fund, subject to audits by the Comptroller and Auditor General. The bill clarifies the financial arrangements for the Duchy of Cornwall's income, particularly when the heir to the throne is a minor. Additionally, the bill specifies that the Secretary of State holds no duties regarding the maintenance of Royal Palaces and related land funded by the Sovereign Grant. The bill contains transitional provisions to manage the shift from the Civil List system. The Sovereign Grant provisions are set to expire six months after the end of the current reign unless continued by Order in Council.

Government Spending

The bill doesn't directly increase or decrease overall government spending. Instead, it shifts funding for the monarchy from the Civil List, which was subject to parliamentary approval annually, to a new system based on a percentage of Crown Estate profits. While the initial grant was £31 million, future amounts will vary based on the Crown Estate's income.

Groups Affected

• The Monarch: Receives the Sovereign Grant for the Royal Household's expenses.
• The Royal Household: Funding for their operations is now based on the Sovereign Grant.
• The Royal Trustees: Responsible for determining the annual amount of the Sovereign Grant and managing the Reserve Fund.
• The Crown Estate: Their income directly influences the amount of the Sovereign Grant.
• Parliament: Retains oversight through annual reporting and potential approval of changes to the percentage calculation.
• Heir to the Throne: Receives a grant from the Treasury based on the Duchy of Cornwall income, particularly if the heir is a minor.
• Beneficiaries of repealed pension provisions under the Civil List Acts: Their pensions are subject to transitional arrangements.

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