A leak from within Buckingham Palace has prompted a slew of headlines pitting the apparently arch republican First Minister of Scotland, Nicola Sturgeon, against the monarchy, amid claims that Scotland has decided keep the profits from Crown Estate assets for itself.
It has been claimed that Holyrood's plan to keep money generated north of the border could knock a £2m hole in the Royals' income.
Three papers, the Daily Telegraph, The Times and The Guardian, all cite a source within the palace who claims that the Scottish government has decided profits on Crown Estate properties in Scotland, which will be devolved to Holyrood from next April, will no longer be paid to the Treasury. The portfolio of Scottish properties, valued at £216m, generated profits of £14.5m last year, but from now on that money will be retained for use in Scotland and could be transferred to local authorities.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
SUBSCRIBE & SAVE
Sign up for The Week's Free Newsletters
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.
Latest Videos FromThe Week
The Crown Estate is a portfolio of properties owned on behalf of the monarchy, the income from which has traditionally been paid to the Treasury "for the benefit of the nation". The Royals are paid in return through a sovereign grant, which is worked out as a percentage of Crown Estate profits and other revenues.
Figures published today reveal the Crown Estate portfolio surged in value by 17 per cent last year to £11.5bn, generating an income of £285m. Under the current formula that would equate to a grant of £42.8m, or 15 per cent, in the 2016/2017 financial year. If the Scottish changes are taken at face value, then this figure would fall by around £2.2m.
However, profits from the Crown Estate are only indirectly linked to amount of money the Royal family receives. A spokesman for the Palace told the Guardian, "there is a formulaic connection between the two, but there is no financial connection between the two".
The exact percentage used to calculate the grant is due to be assessed from April 2016. The Palace source told the Telegraph: "Our intention is to reflect the consequences of the Scottish Crown Estate situation."
