Queen Elizabeth II and her family are facing a 35 million pound ($45 million) hit from the coronavirus pandemic. This financial crisis is partly due to a shortage of tourists.
The royal family takes in rental receipts from shops in London's Regent Street, alongside malls and retail parks around the country. However, the value of its portfolio has fallen by more than £500 million since the coronavirus pandemic hit.
The British government said it would provide Crown Estate with extra money to meet any shortfall in profits and make sure Queen Elizabeth II's sovereign grant remains at its current level. "In the event of a reduction in the Crown Estate's profits, the sovereign grant is set at the same level as the previous year," a spokesperson said told the Independent.
"The revenue from the Crown Estate helps pay for our vital public services – over the last 10 years it has returned a total of £2.8bn to the Exchequer. The sovereign grant funds the official business of the monarchy, and does not provide a private income to any member of the royal family."
Keeper of the Privy Purse Michael Stevens released the family's account. He said a lack of income from visitors to royal buildings was likely to bring a general funding shortfall of 15 million pounds ($19 million) over three years. Stevens added that the impact of the pandemic is also likely to cause a 20 million-pound ($25.4 million) shortfall in 10 years.
Officials have said the palace's aging infrastructure is at risk. The palace last underwent major upgrade after World War II. Stevens said the royal household would not ask for more government money but would "look to manage the impact through our own efforts and efficiencies." Buckingham Palace has already introduced a staff pay freeze and a halt to hiring.
The accounts show that the monarchy cost British taxpayers 69.4 million pounds ($88.2 million) in the year to the end of March, an increase of 2.4 million ($3.1 million) on the previous financial year.
Prince Harry and Meghan Markle, paid an undisclosed sum to reimburse the public purse for rent and refurbishment of their Frogmore Cottage home near Windsor Castle, according to the account. The exact amount of money spent will appear in next year's accounts.