02-07-2025
King Charles's estate to review rents charged to NHS and schools
The King's Duchy of Lancaster will 'actively review' its rental agreements after the royal estates faced criticism for charging rent to the NHS and other taxpayer-funded public bodies, The Times has learnt.
Last year it emerged that the royal estates of the Duchies of Lancaster and Cornwall, which provide private incomes to the King and the Prince of Wales, received millions of pounds in rent from public bodies and charities, including schools, the health service and the armed forces.
On Monday Will Bax, the secretary and keeper of the records of the Prince of Wales's Duchy of Cornwall, said the estate had reacted to 'media scrutiny' by waiving the rent for grassroots organisations such as the Scouts and halving rates for local community groups.
Releasing its annual accounts, Bax said contracts with schools on the 52,000-hectare estate would also be reviewed. There was no mention of rent reductions or reviews for the public bodies such as the Ministry of Defence and the NHS, which lease property from the duchy.
The Duchy of Lancaster, however, has now confirmed it will 'actively review' its policies. It said: 'The Duchy of Lancaster has a long-established policy of offering nominal rental rates to small charities and community groups delivering valuable services at a local level. The duchy council actively reviews its policies on an ongoing basis and will continue to consider its future position on this matter to see what further steps may be taken.'
On Monday, the Duchy of Cornwall, which funds the office of the Prince of Wales and provides him with a private income, released its annual accounts. The prince received £22.9 million from the estate last year, down from £23.6 million the year before. The estate declined to reveal how much tax the prince had paid but confirmed it was at the 'highest rate'.
Releasing the figures, Bax said: 'We have created a new policy relating to rents charged to community groups and local charities, where they are active within our communities. The policy focuses on direct tenants. Going forward, we will waive rents for grassroots community tenants and provide up to a 50 per cent rental discount to local charity tenants who directly rent space from the duchy and are active on the ground within our communities.'
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Bax added: 'It would be remiss not to address the media scrutiny the duchy has experienced this year … We have used these challenges to stop and reflect. Both the duke and I are clear that we want the duchy to be world-class in our approach to supporting people, communities and nature to flourish.'
The scrutiny on the royal estates came from an analysis of the land by The Sunday Times and Channel 4's Dispatches programme. It compiled details of the commercial rent charged to public bodies, including the NHS and Ministry of Defence.
Contracts included a £37.5 million agreement between the Duchy of Cornwall and the Ministry of Justice to lease Dartmoor prison and an £11.4 million deal between Guy's and St Thomas' NHS Foundation Trust and the Duchy of Lancaster to rent a London warehouse to store ambulances over a 15-year period.
At the time, the Duchy of Lancaster said the estate 'complies with all relevant UK legislation and regulatory standards applicable to its range of business activities'.
While the information was already in the public domain, critics questioned whether the agreements should be more readily transparent to taxpayers, who effectively subsidise the duchies through fees levied on schools, the health service and the military.
When publishing the most recent report, Bax said: 'I've spent my first eight months at the duchy listening and learning from colleagues, stakeholders, our tenants and partners across the estate, and working closely with the Duke [of Cornwall] to guide this time of reflection and evolution.
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'We are bringing change to the duchy. Whilst this will manifest in different ways, we are particularly refocusing our strategy to maximise the positive impact we have on people, places and the planet.'
The latest accounts for the Duchy of Lancaster have yet to be released.
