King Charles loses nearly $1 billion and is forced to dip into royal reserves as cost of living crisis hits monarchy
Even the British royal family is not immune from the cost of living crisis, with the Crown Estate losing half a billion pounds (approx. $950 million AUD) on its London property portfolio after the value of retail space crashed.
King Charles III was forced to dip into the royal reserves by £21 million (approx. $40 million AUD) due to overspending, while staff have implemented a number of cost-cutting measures across the various royal estates including turning down the heating.
Buckingham Palace's net expenditure grew by more than £5 million this year, to £107.5 million (approx. $203 million AUD) following an "unprecedented" year of royal activity.
READ MORE: How Prince William scored a $12 million pay rise in just six months
The royal family's annual spending list has been revealed with a number of huge expenses due to an "exceptional year". Chris Jackson/Getty Images
That included the late Queen Elizabeth II's Platinum Jubilee, the Queen's funeral, preparation for the King's coronation and the joining of two royal households.
The finances were revealed in the Sovereign Grant, the annual payment the royal family receives from the government to cover its official costs.
READ MORE: Harry and Meghan have moved out of Frogmore Cottage, palace says
The sum has remained £86.3 million (approx. $163 million AUD) since 2021.
During a media briefing on Tuesday, Sir Michael Stevens, keeper of the privy purse, emphasised that it had been "an exceptional year" for the royal household.
The late Queen's Platinum Jubilee cost around $1.3 million AUD. AP
He said the period reflected in the accounts, from April 1 2022 to March 31 2023, related to a year of "grief, change and celebration, the like of which our nation has not witnessed for seven decades".
The historic events, he said, have "inevitably entailed additional burdens on resources" to ensure that they were "delivered safely and smoothly, and that the change of reign was effected as seamlessly as possible at a time of great national and international interest".
READ MORE: Harry follows in Diana's footsteps for rumoured project without Meghan
The Platinum Jubilee cost £700,000 (approx. $1.3 million AUD), while the Queen's funeral cost £1.6 million (approx. $3.5 million AUD).
Under a number of measures put in place to keep costs down, the heating has been turned down across the royal residences.
The late Queen's funeral cost around $3.5 million AUD. Getty
Guests, staff and the royal family have set the thermostat set at 19C during the winter and a few degrees lower when rooms were empty.
Among the biggest expenses is staff wages, rising £3.4 million to £27.1 million, with employees given a pay rise of about five-six per cent.
The cost of food and drink rose from £600,000 for 2022 to £1.5 million as the palace doors reopened to near pre-pandemic levels.
The majority of the royal family's wealth comes from the Crown Estate, roughly about £16 billion of an estimated £20 billion.
The royal family's expenses have risen but the Sovereign Grant also shows a number of loses. Chris Jackson/Getty via AP
The profits are surrendered to the Treasury, which returns a percentage of this sum to the royal family as the grant.
The fund, or the Sovereign Grant, pays for the official travel, property maintenance and other running costs of the royal household on official business.
Vast amounts of money is also being spent on Buckingham Palace which is in the midst of a 10-year refurbishment.
A palace official said King Charles and Queen Camilla planned to make the palace their main residence once the refit was complete, not for a few years at least.
Most viewed in Royals
Meghan gives first look at Prince Archie and Princess Lilibet’s new UK life
World’s youngest king laid to rest as succession battle erupts amid claims of secret child
Prince William and Kate back return to official duties with subtle nod to Prince Harry
Grace Kelly’s granddaughter engaged after decade-long romance
