Inflation – so long the bugbear of entrepreneurs and householders across the United Kingdom – is also hitting the royal family where it hurts from Buckingham Palace to Balmoral. It means King Charles is forced to turn down the heat in his palaces.
Interest rates are up again
The Bank of England raised interest rates at noon, on June 22, from 4.5 % to 5%. Traders interviewed by the Daily Telegraph fear interest rates could reach 6% by the end of the year and stay that way until May.
Despite a string of interest rate rises, UK inflation stays stubbornly high, in figures released in May, at 8.7 % as household bills increase, forcing the cost of living.
Inflation hitting the royals in the pocket
This soaring inflation is also hitting the British royals in the pocket, according to Buckingham Palace. It is so bad, that King Charles ordered the heating to be turned down in royal palaces to save money and cut emissions.
The annual Sovereign Grant report, which details the royals’ taxpayer-funded spending and income, detailed that the monarch said thermostats should be turned down to 19 degrees Celsius (66.2°F) to cut greenhouse gas emissions, in keeping with his long-term environmental campaigning, Reuters reported.
Expensive year for the royals
“You will not need me to remind you that this reporting period relates to a year in which inflationary pressures saw the price of many goods and services increase significantly for all organisations, in particular with regards to the cost of fuel and energy,” said Michael Stevens, the royal treasurer.
This last year has been one of the busiest and most expensive for generations. There were celebrations for Queen Elizabeth’s 70th year on the throne, last June, followed by her September funeral, and King Charles’s coronation in May.
The report said the royals spent $2 million on the Queen’s funeral which cost the taxpayer £162 million to stage.
Royal spending is on the rise
Royal spending rose by 5% to £107.5 million, with staff costs rising significantly, while the Sovereign Grant – based on surplus revenue from the Crown Estate, a property portfolio belonging to the monarchy, remained at £86.3 million and additional income fell slightly to £9.8 million.
Stevens said gas and heating emissions had fallen 19%, partly driven by the king having the thermostats turned down, and a 43% decrease in travel emissions.
Critics of the royals said the monarchy cost far more than the report suggested, and said Charles’ son and heir Prince William, who received 6 million pounds from his inherited Duchy of Cornwall estate, should have published full details of his annual accounts.
