A recent investigation revealed that the estates of King Charles and Prince William, the Duchy of Lancaster and the Duchy of Cornwall, are profiting significantly through leases with UK public services, charities, and the NHS. Together, these royal properties hold over 5,400 leases, often with institutions facing financial strain.
The Duchies’ revenue sources include various long-term deals, such as a £11.4 million lease with Guy’s and St Thomas’ NHS Trust, which uses Duchy property to store its electric ambulance fleet. The Duchy of Cornwall has entered a 25-year contract to lease Dartmoor prison land to the Ministry of Justice in a deal worth £37 million, despite the prison being empty due to high radon gas levels. This contract also places full responsibility for repairs on the ministry.
Additionally, Camelford House—a Duchy-owned high-rise along the Thames—has generated at least £22 million in rent from charities since 2005, including Marie Curie and Macmillan Cancer Support, which both recently downsized due to financial constraints.
Tax Exemptions Fuel Criticism Of Royal Privileges
Exempt from corporate and capital gains taxes, the Duchies enjoy a financial advantage over commercial rivals. Critics argue that this setup contributes to the monarchy’s income without direct taxpayer costs, leading to renewed calls for reform. Baroness Margaret Hodge, former chair of the Commons Public Accounts Committee, has suggested that imposing corporation tax would help align the royal estates with regular commercial standards, calling for greater transparency in royal finances.
Environmental Shortfalls Amongst Royal Properties
Despite the royal family’s public advocacy on environmental issues, investigators found that a notable percentage of Duchy-leased homes fail to meet energy efficiency standards. Roughly 14% of Duchy of Cornwall and 13% of Duchy of Lancaster properties hold energy ratings below the legally acceptable level, a standard set by the Minimum Energy Efficiency Standards (MEES). While the Duchies claim that most properties meet or exceed these requirements, they acknowledged that some are exempt or are awaiting upgrades.
This report has ignited debate over the privileges enjoyed by the Duchies, with some voices suggesting a parliamentary review. Proponents of change advocate for merging the Duchies with the Crown Estate, whose profits are directed to the government, rather than sustaining the monarchy’s private funds. Calls for greater transparency and accountability are growing louder, especially as the royal estates increasingly operate in the public sphere.
Duchies’ Response To Scrutiny
Both estates maintain that they are compliant with disclosure laws and stress that they operate as commercial entities. The Duchy of Lancaster affirmed that King Charles voluntarily pays tax on Duchy income, though details remain undisclosed. Both estates emphasized efforts to adopt greener practices and enhance energy efficiency in leased properties, yet critics argue that this response does not address concerns over financial transparency and tax exemptions.
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