The £45m increase in the Sovereign Grant, funded by taxpayers, will be used to help complete the ongoing 10-year renovation of Buckingham Palace.

The Crown Estate, which manages the Royal Family’s land and property holdings, saw profits more than double to a record £1.1 billion in the year ending 31 March 2024. The growth was primarily attributed to option fees paid by companies to reserve areas of the seabed for offshore wind farms.

Dan Labbad, chief executive officer at The Crown Estate, said: “Today’s record results are the product of years of commitment and investment into helping create the UK’s world-leading offshore wind sector, as well as the active management of our diverse and resilient portfolio.

“Our track record and remit are also enabling us to invest and lay the foundations for future value creation that will benefit the country and its finances.

“In support of this, we have welcomed the government’s commitment to bring forward legislation that will broaden our investment powers and enable us to have an even greater impact in the long-term national interest, from supporting the UK’s decarbonised, energy secure future to nature recovery, regeneration and economic growth.”

The organisation plans to lease more land for wind farms in the coming years, contributing to the UK’s goal of adding 20 to 30 gigawatts of offshore wind capacity by 2030.

The Sovereign Grant report also revealed that the royal household will receive two new helicopters and is transitioning to more sustainable practices, such as converting the King’s Bentleys to run on biofuel and introducing solar panels at Windsor Castle.