Sovereign Grant Bill

Torsten Bell Excerpts

2nd reading
Monday 14th September 2026 Commons Chamber

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

I beg to move, That the Bill be now read a Second time.

The Bill relates to the sovereign grant that Parliament has provided to support the official duties of the monarch and the work of the royal household. The Bill implements the conclusions of the recent royal trustees’ review of that sovereign grant. In doing so, it resets the grant level for the next financial year, giving effect to the commitment of successive Governments and the expectation of the royal household for a reduction in the level of funding following the completion of the Buckingham Palace reservicing programme, which keen Members will have heard about on the news this morning on the back of the discovery of some historical documents.

The Bill also makes targeted improvements to the statutory framework for this funding, introducing limited flexibilities to ensure that funding levels remain appropriate even in exceptional circumstances. This will make it easier to respond where funding would otherwise become inappropriately low or inappropriately high.

To support the monarch’s official duties, the sovereign grant funds the staff, official travel, property maintenance and essential services for the sovereign to fulfil their unique constitutional role. That role extends beyond ceremonial functions: it includes hosting heads of state, supporting diplomatic engagements, representing the United Kingdom overseas, and strengthening our relationships across the Commonwealth and the world. These activities support the UK’s interests, including trade, investment and security. At home, the grant supports the significant role of the sovereign and the wider royal household, from recognising charitable and voluntary service to bringing communities together across the United Kingdom.

Since 2012, the amount of the sovereign grant has been determined through a statutory framework established by Parliament in the Sovereign Grant Act 2011. That framework requires the annual grant amount to be calculated by reference to the previous year’s expenditure and a percentage of the profits of the Crown Estate—an independent public corporation whose net revenue profits are returned to the Exchequer. To ensure that funding levels remain appropriate, the 2011 Act requires the royal trustees—the Prime Minister, the Chancellor of the Exchequer and the Keeper of the Privy Purse—to conduct regular reviews.

[Jim Shannon (Strangford) (DUP)]

The Minister is setting the scene incredibly well. He is right to underline that the British monarchy has clearly been a source of stability across the world, and to say that its unity remains irreplaceable in a world full of division. We acknowledge the ongoing need to review and adjust the sovereign grant, but does he agree that it is vital that the monarchy remains appropriately funded? When he sums up, can he assure us that the monarchy will be funded to effectively fulfil its duty to this country, the great United Kingdom of Great Britain and Northern Ireland?

--- Later in debate ---

[Torsten Bell]

I thank the hon. Gentleman for his tribute to the monarchy. His description of what he would like to see in the setting of the sovereign grant reflects exactly what has to take place. As I was just explaining, the three trustees are required to take into account the funding required to deliver the function that we all want our monarch to deliver.

[Danny Kruger (East Wiltshire) (Reform)]

There is what might be an important innovation in the text of this year’s sovereign grant annual report and accounts, which the Bill refers to and which the Minister is describing. Usually, the description of the sovereign’s role includes the term “defender of the faith”, but that term does not appear in this year’s report and accounts. Instead, the monarch is referred to as the

“Supreme Governor of the Church of England”.

That is good. The report also says that he

“protects the space for Faith within the multi-faith nation.”

That is an admirable ambition, but I invite the Minister to confirm that no alteration to the monarch’s role is implied in that change. If there were to be such an alteration, would it be debated properly in Parliament, rather than introduced quietly through these sorts of official reports?

[Torsten Bell]

The hon. Member has shown interest in this topic over many years, in a lot of different environments. This is a question of “and”, rather than “or”. As he says, the document spells out that His Majesty is the Supreme Governor of the Church of England. I encourage him to go on to the royal family’s website, where he will see the language about the King being the defender of the faith very prominently displayed. I hope that gives him the reassurance that he seeks.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

We are extremely fortunate to have a monarchy, particularly this monarchy. Since the reign of George III, the profits from the Crown Estate have accrued to the Treasury; in return, the institution of the monarchy receives a grant, which we are debating today. Part of that is an annually determined proportion of the profits. However, for things other than exceptional expenditure, such as on Buckingham Palace, the institution presumably requires some sort of stability and certainty about the receipts necessary to carry out its functions. Is it logical for the grant to be a proportion of profits, which will inevitably vary year by year, because they are a commercial matter?

[Torsten Bell]

I think everybody in this House will agree with the thrust of what the right hon. Gentleman successfully argues. A royal household with an important role, both as the sovereign, and in maintaining an estate of grade I listed monuments, needs certainty about its income. It is not for me to defend the previous Government, but the 2011 Act provided two bases for funding. The first is the mechanism that he mentioned, relating to a proportion of the profits of the Crown Estate. The second is a proviso that there be no fall, from year to year, in the amount of the grant. That is to provide exactly the stability that he talks about. That is why we are taking forward this primary legislation, with that dual lock. The reduction this year is purely to take into account the bringing to an end of the Buckingham Palace 10-year repair project. The legislation then provides an ongoing commitment to the royal household and the monarch that the grant will remain at next year’s level, at least. I hope that offers the right hon. Gentleman reassurance.

As I was saying, a key point of context is that Parliament agreed a temporary uplift to the grant from 2017-18 to 2026-27 to fund the Buckingham Palace reservicing programme. That was a major 10-year investment to modernise ageing infrastructure, replace critical electrical and mechanical systems, and safeguard the long-term future of one of the nation’s most historic buildings. As that programme nears completion, it is time for the level of funding to be reassessed. Earlier this year, the then royal trustees completed the latest review and considered both the royal household’s projected expenditure and the Crown Estate’s projected revenues for the period from 2027 to 2032. The trustees concluded that with the Buckingham Palace reservicing programme nearing completion, the exceptional funding requirements that justified that temporary uplift no longer exist. They therefore recommended that the sovereign grant should fall from £137.9 million in 2026-27 to £99.9 million in 2027-28. That represents a reduction of almost £38 million, or more than a quarter.

At the same time, the trustees recognised that the royal household continues to face operational pressures in delivering what we all think of as crucial work. The recommended amount of funding will enable the household to address a maintenance backlog that was exacerbated by the pandemic, and to replace ageing digital infrastructure to strengthen cyber-security. The grant provided for by this Bill ensures value for money for taxpayers, and that the royal household can continue to discharge its crucial functions effectively.

This Bill delivers a fair and proportionate funding settlement. It reduces the amount of the sovereign grant, following the completion of a major capital programme; it improves the resilience and sustainability of the statutory framework established in 2011, while maintaining parliamentary oversight; and it ensures that the sovereign grant can continue to fulfil its core purpose, which is supporting the official duties of the monarch and maintaining the occupied royal palaces on behalf of the nation. On that basis, I commend this Bill to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.