A new investigation by Channel 4’s Dispatches and the Sunday Times has uncovered that the Royal Family has received millions in rental income from public bodies, including the NHS, schools, and the armed forces. The documentary highlights contracts held by the private estates of King Charles and Prince William with various public institutions.
Dame Margaret Hodge, a prominent critic, has called for a “full and transparent review” of the Duchies of Lancaster and Cornwall, expressing concern over the implications of these findings. She stated that the revelations raise “serious question marks” about the financial operations of the royal estates.
According to the investigation, the Duchies of Lancaster and Cornwall have generated around £50 million from recent deals. Notable agreements include a £37.5 million lease for Dartmoor Prison between the Duchy of Cornwall and the Ministry of Justice, and an £11.4 million contract with Guy’s and St Thomas’ NHS Trust to rent a warehouse for ambulances.
Additionally, the estates reportedly charge the Ministry of Defence for access to moor boats and for refueling warships, as well as leasing properties to state schools and a local council for a toll bridge operation.
The royal estates benefit from tax exemptions, not being subject to corporation tax or capital gains tax on asset sales, although they voluntarily pay income tax on surplus earnings. The documentary raises concerns about the environmental impact of some contracts, particularly those related to mining.
Dame Hodge emphasized the need for the monarchy to lead by example in financial matters, stating, “They can’t have it both ways. If they want to be private and commercial, they have to pay the fair rate of tax like everyone else.”
Both Duchies defended their practices, with a spokesperson for the Duchy of Cornwall stating that it operates with a commercial imperative while committing to environmental restoration and community benefits. Meanwhile, the Duchy of Lancaster noted that it manages a wide range of land and property assets in a commercially responsible manner.
As the documentary unfolds, it also highlights that profits from the Crown Estate, separate from the private Duchies, fund the Sovereign Grant, which is set to rise to £132 million next financial year. This increase follows a record profit of £1.1 billion from the Crown Estate.