In a striking revelation, recent research has unveiled that the Duchy of Cornwall and the Duchy of Lancaster could generate upwards of £50 million from ground rents and various public services, including the NHS and schools.

This financial windfall comes amidst a backdrop of cash-strapped charities and public institutions, raising eyebrows about the royal family’s extensive property empire.

The financial operations of these duchies are particularly noteworthy because they are exempt from corporation tax.

This exemption essentially allows them to fund not only their luxurious lifestyles but also numerous charitable endeavors.

Combined, the two duchies manage over 5,400 leasehold estates, a significant portfolio that underscores their substantial economic influence.

A new investigation, titled “State Schools and Prisons,” has shed light on the financial dealings between these royal properties and public services.

For instance, the Guy’s and St Thomas NHS Hospital Trust in London has entered a 15-year agreement to pay £11.4 million for storage space for its electric ambulances in a warehouse owned by the Duchy of Lancaster, which boasts a history spanning 750 years.

Additionally, the Duchy of Lancaster is poised to earn at least £28 million from a wind farm project, thanks to its feudal rights to collect cable tolls along the foreshore.

This finding comes from an investigation conducted by Channel 4’s Dispatch and the Sunday Times, highlighting the lucrative nature of royal land holdings.

On the other hand, Prince William, as the heir to the Duchy of Cornwall, recently signed a £37 million deal to lease Dartmoor Prison to the Ministry of Justice for a quarter of a century.

While responsible for all necessary repairs, he has already faced a hefty bill of £1.5 million per inmate after the facility was emptied due to rising aid levels.

William’s estate also includes Camelford House, a prominent 1960s tower block located by the Thames, which has generated at least £22 million in rent since 2005, largely from charities and other tenants.

Recently, notable cancer charities like Marie Curie and Macmillan, both of which have the King’s support, have downsized to smaller locations, indicating the financial pressures faced by such organizations.

Moreover, the Duchy of Cornwall charges the Royal Navy over £1 million for constructing and utilizing a pier for warships.

The Duchy also collects fees for military exercises conducted on Dartmoor, although a Freedom of Information request seeking transparency on these costs was denied by the Ministry of Defence.

The Duchy is set to receive more than £600,000 from the construction of a fire station and nearly the same amount from leases with six state schools, further illustrating its financial reach into public services.

Despite their vocal commitment to environmental issues, many residential properties rented from these royal estates fall short of basic energy efficiency standards.

Inspections revealed that 14% of homes managed by the Duchy of Cornwall and 13% of those under the Duchy of Lancaster have dismal energy ratings of F or G. Starting in 2020, landlords will face legal restrictions against renting properties rated E or below, as mandated by the Minimum Energy Efficiency Standards Regulation.

In response to concerns, the Duchy of Lancaster asserted that over 87% of its rental properties meet or exceed a rating of D. The remaining properties are reportedly awaiting planned restoration, with the duchy benefiting from tax exemptions under UK law.

This investigation has sparked calls for a parliamentary inquiry into the royal estates and suggestions that their interests should be transferred to the government as Crown estates.

Although King Charles and Prince William do pay income tax on profits derived from the estates—after deducting business expenses—they have yet to disclose specific amounts.

Critics argue that these estates, which successive governments have relied upon to maintain low taxpayer burdens, enjoy a competitive edge due to their exemption from corporation tax and capital gains tax.

Baroness Margaret Hodge, a former chair of the House of Commons Public Accounts Committee, has voiced that the dukes should be subject to at least corporation tax.