Buckingham Palace to get £369 million revamp

2nd December 2016

Almost £4 million of public money has been approved by the government to fund a critical refurbishment of Buckingham Palace, on the basis of its national importance as a tourist attraction.

The total capital cost of the refit - projected to take ten years - will be £369 million, according to the Reservicing of Buckingham Palace Summary Report.

The UK's most famous house is expected to generate additional revenue of £139 million by extending its lifespan by an extra 50 years. Therefore, the project’s net cost is closer to £230 million (equating to a £222 million net present cost once inflation is taken into account).

Due to start in April 2017, the project aims to reduce a palpable risk of fire, flood and damage to both the building and the priceless Royal Collection of art belonging to the nation.

Some of the existing utility systems date back to the 1950s, and some of the recommended updates include replacing electrical wiring, water pipes and the heating system.

According to the Royal Trustees, the Sovereign Grant will see a temporary increase from 15% to 25% of the Crown Estate’s profits to fund the works for the ten year duration. To guarantee optimum value for taxpayers’ money, Parliament has assured the public that the Royal Household will be held to account throughout the process.

The programme will occur in phases, in a wing-by-wing sequence so that the day-to-day operation of the Palace won’t be adversely disrupted and, of course, so that it can remain occupied.

After extensive technical assessments, it was concluded that there are a series of very old, delicate systems with a high risk of failure within the palace. The systems, some over sixty years old, need to be replaced as a matter of urgency by 2019. Electrical cabling, electrical panels, boilers, drainage pipework and data systems all need to be brought into the 21st century urgently.

During Buckingham Palace’s annual summer opening, more than half a million people converge on this historic landmark, in addition to hoards of tourists visiting daily to see the Changing of the Guard. More privately, Buckingham Palace hosts almost 100,000 people every year for a range of official events.

David Gauke, Chief Secretary to the Treasury, said: “Tourists are drawn to this country because of our culture, heritage and royal legacy, and when they visit they spend billions of pounds and support thousands of jobs. We must ensure that the special architectural and historic nature of some of our greatest buildings are protected for future generations, therefore it is only right we ensure Buckingham Palace is fit for purpose.

“These urgent works have been properly costed and will ensure the Palace can continue its centuries-long tradition of being the working house of our monarch. We will ensure every penny spent achieves the greatest value for money.”

Buckingham Palace is also a working office and residential building for the royal family, as well as an international tourist attraction.

Written by Ian Johnson