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Royal family faces a $45 million loss due to COVID-19, and British taxpayers might have to make up the difference

Part of the loss is because of a drop in tourism to royal properties like Buckingham Palace during the coronavirus pandemic

SHARE Royal family faces a $45 million loss due to COVID-19, and British taxpayers might have to make up the difference
Queen Elizabeth II

Queen Elizabeth II and the royal family is facing a nearly $45 million shortfall due to the COVID-19 pandemic.

Associated Press

Queen Elizabeth and the royal family are facing some financial blows due to the coronavirus pandemic — but UK taxpayers might be picking up the slack, according to CNN.

Like many sites around the world, royal residences like Buckingham Palace have seen a sharp decrease in tourists over the last few months due to COVID-19 restrictions. And that lack of visitors has caused a lack of income, BBC News reported.

The decrease in tourists could cause a shortfall of 15 million pounds ($19 million) over the next three years, the royal family’s treasurer, Keeper of the Privy Purse Michael Stevens, revealed on Friday, according to BBC.

The pandemic will also affect a 10-year plan to refurbish Buckingham Palace — replacing outdated heating and plumbing, which hasn’t had a major upgrade since after World War II — which will now be 20 million pounds short, according to The Associated Press.

Profits from royal buildings and land — collectively known as the Crown Estate — factor into the amount that the royal family is given by the government each year as part of the Sovereign Grant, which covers their travel, staff and other official expenses, according to CNBC.

However, despite the decrease in profits, a law governing the Sovereign Grant dictates that it cannot “fall in absolute terms,” meaning that the royal family must receive the same share of money — and taxpayers will likely have to make up the difference, according to CNN.

But Stevens said Friday that the royal family will not be turning to the government for any extra funding.

“In responding to these challenges, we have no intention of asking for extra funding but will look to manage the impact through our own efforts and efficiencies,” Stevens said, according to CNBC.

There is already a hiring freeze and a pay freeze in effect at Buckingham Palace, according to The Associated Press.