The British government has made a decision to reduce the percentage of funds allocated to the royal family from the Crown Estate, an independently-run property portfolio owned by King Charles, with its profits going to the Treasury.

Starting next year, the funding provided to support the Firm’s official duties will be reduced to 12 percent of the Crown Estate’s net profits.

This reduction in the sovereign grant was disclosed in a review conducted by the royal trustees, which was published on Thursday.

The sovereign grant is given to cover the expenses of running the royal households and official travel costs, and it is based on the surplus revenue generated by the Crown Estate.

As a result of this decision, the Royal Household’s budget is expected to be £24 million lower in 2024 compared to what it would have been, and it will be £130 million lower in each of the following two years.

King Charles III expressed his desire for windfarm profits to be directed towards the “wider public good.”

The money saved from cutting the grant “will instead be utilized to fund essential public services, for the benefit of the nation,” stated the Treasury.

In January, the newly crowned King, aged 74, announced that the royal family would redirect profits from the Estate’s new and lucrative wind farm deals to benefit the broader public.

The sovereign grant, which was valued at £86.3 million ($111 million) last year, is typically calculated as 15 percent of Crown Estate profits.

However, it had been temporarily increased to 25 percent to cover extensive refurbishment work at Buckingham Palace.

With new deals for offshore wind farms projected to generate an additional £900 million per year for the Estate, the profits are expected to surge significantly.

The financing system for the royal family underwent an overhaul in 2011 under the administration of then Prime Minister David Cameron.

The sovereign grant, linking royal funding to Crown Estate profits, replaced a fixed annual expenditure that had been approved by MPs and reviewed every decade.

The Crown Estate, which manages the monarch’s land and property portfolio, operates independently of both the monarch and the government.

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