The rules governing the Sovereign Grant are set out in the Sovereign Grant Act 2011. This Act requires a review following every five-year period to ensure the percentage of Crown Estate profits used in the calculation of the Grant remains appropriate.

The most recent Sovereign Grant Review was published on 26 June this year. The Royal Trustees concluded that a reference rate of 20.5 per cent is appropriate for the funding formula from 2027-28 onwards, which equates to a 2027-28 Grant amount of £99.9 million, a reduction against the £137.9 million in 2026-27.

The Government is committed to bringing forward legislation to enable the Grant to be reset to that lower level from 2027-28 and will bring forward the Sovereign Grant Bill when parliamentary time allows. This Bill will also introduce a mechanism so that in future years, the Grant can be reduced from one year to the next, preventing inappropriately high funding without the need for further primary legislation. This legislation will enable further parliamentary debate to occur.