Royal palaces face financial ruin after three months with no tourists

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Royal palaces plead for help: Treasured sites including Hampton Court and the Tower of London face financial ruin from the loss of £96m after three months with no tourists

  • Historic Royal Palaces has lost 85% of its annual income due to the pandemic  
  • Its chief executive admitted the expected shortfall was a ‘devastating blow’
  • The charity now wants the public to help safeguard the future of the buildings 
  • Here’s how to help people impacted by Covid-19

By Rebecca English Royal Editor For The Daily Mail

Published: | Updated:

The charity responsible for the upkeep of some of our most famous royal residences is facing financial ruin due to the pandemic.

Historic Royal Palaces says it has lost 85 per cent of its annual income – about £96million.

The organisation runs the public areas of the Tower of London, Hampton Court and Kensington Palace, where the Duke and Duchess of Cambridge live.

Its chief executive, John Barnes, told the Daily Mail the expected shortfall was a ‘devastating blow’ and his team were ‘heartbroken’.

Kensington Palace, pictured, was the birthplace and childhood home of Queen Victoria and also the London residence of Princess Diana

Historic Royal Palaces (HRP) relies on visitors for 80 per cent of its income and has lost almost three months during lockdown.

It is slowly opening its outdoor public areas, such as the gardens at Hampton Court, as the Government relaxes regulations. 

But the projected slow recovery of the tourism industry means that the charity is likely to bring in just £14million of the £110million it had hoped to make this year.

It is now appealing to the public to help safeguard the future of the buildings it cares for by donating, taking out memberships and visiting the sites when they open.

A plea posted on social media yesterday began with: ‘We’ve got to be honest – we need your help.’ 

The charity said it urgently needed funds to ‘protect the palaces’ for future generations.

And Mr Barnes said: ‘Historic Royal Palaces is a self-funded charity. The closure of our six sites for three months has dealt a devastating blow to our finances, which we expect to continue for the rest of the financial year and to be compounded by the slow recovery of international tourism.

Historic Royal Palaces is slowly opening its outdoor public areas, such as the gardens at Hampton Court, pictured, as the Government relaxes regulations

Historic Royal Palaces is slowly opening its outdoor public areas, such as the gardens at Hampton Court, pictured, as the Government relaxes regulations

‘We have taken every possible measure to secure our financial position, but in the long term, we need public support to sustain our charity through this crisis.

‘We are privileged to be the guardians of six remarkable buildings, but the dedicated team who care for them are the spirit of our charity, and we are all heartbroken that it has come to this.’

HRP also looks after the Banqueting House, Kew Palace and Hillsborough Castle in Northern Ireland. It does not pay for the upkeep of areas occupied by members of the Royal Family, only those that are open to the public.

It raises all its own funds and depends on the support of visitors, members, donors, sponsors and volunteers.

Last financial year, the charity spent £37million on conservation and maintenance alone.

The six sites have set the scene for some of the most remarkable moments in British history, such as the negotiation of the Good Friday agreement.

The Tower of London, pictured, is a World Heritage Site and boasts more than 1,000 years of history

The Tower of London, pictured, is a World Heritage Site and boasts more than 1,000 years of history

Kensington Palace was the birthplace and childhood home of Queen Victoria. It was also the London residence of Princess Diana, whose dresses were rescued by the charity from private ownership and are still among the biggest attractions today.

The Tower of London, meanwhile, is a World Heritage Site and boasts more than 1,000 years of history.

It is famously also home to the 23,578 gemstones that make up the Crown Jewels, which are still used in our royal ceremonies.

400,000 arts jobs at risk in ‘cultural catastrophe’

More than 400,000 jobs and £74billion in revenue could be lost in the creative industries as leaders warn of a ‘cultural catastrophe’ in the wake of the pandemic.

A report from Oxford Economics assessed the impact of the crisis on industries including music, film, TV, theatre, galleries, publishing and architecture and found the creative sector will be hit twice as hard as the wider economy in 2020.

The Creative Industries Federation is calling for a fund for those in the creative sector ‘who will be hit hardest’ as the sector is ‘on the brink of devastation’. It has also called for an extension of ‘vital measures such as the Job Retention Scheme and the Self-Employment Income Support Scheme’.

Chief executive Caroline Norbury said: ‘These are the industries of the future – highly innovative, resistant to automation and integral to our cultural identity.

‘We’re about to need them more than ever. What today’s report makes clear is that, without additional government support, we are heading for a cultural catastrophe.

‘If nothing is done, thousands of world-leading creative businesses are set to close their doors, hundreds of thousands of jobs will be lost and billions will be lost to our economy. The repercussions would have a devastating and irreversible effect on our country.’

According to the Federation, the industry employed more than two million people and contributed £111.7billion to the economy pre-Covid-19.

Since March, £64.8million has been awarded to culture sector workers to aid them through the crisis after Arts Council England announced its emergency response package, with 7,484 individuals and 2,182 independent organisations benefiting.

This included £13.1million to minority ethnic individuals and minority ethnic-led organisations, £8.5million of funding for deaf or disabled individuals and disabled-led organisations as well as £4million to a series of benevolent funds supporting cultural workers, including musicians, stage technicians and conservators. Some £90million was also made available to support National Portfolio Organisations, with decisions on this funding under way.

Sir Nicholas Serota, Arts Council England chairman, said: ‘This urgent financial support has provided a lifeline to the many creative individuals and organisations across England that make up our vibrant cultural sector, for whom Covid-19 has dealt a devastating blow.’