The Royal Train, a symbol of Britain’s monarchy for over a century and a half, is set to be retired as part of King Charles III’s efforts to modernize and reduce royal spending, Buckingham Palace announced on Monday.

The decision, marking the end of a tradition that began with Queen Victoria in 1869, comes amid rising maintenance costs and the need for significant upgrades to meet modern rail standards. Palace officials confirmed the train will be taken out of service before its current maintenance agreement expires in 2027.

James Chalmers, who oversees royal finances, said the move reflects the monarchy’s shift toward financial discipline and modernization. “As we move forward, we must not be held back by tradition,” he said, noting that many parts of the royal household have adapted to reflect the needs of today’s world.

The Royal Train, made up of nine carriages that are pulled by standard locomotives, has served generations of monarchs on official journeys. Its decommissioning was revealed during the palace’s annual financial briefing.

Despite the move, the royal household will continue to receive £86.3 million ($118 million) from public funds for the fourth consecutive year, including £34.5 million earmarked for the continued renovation of Buckingham Palace. This funding comes from the Sovereign Grant, which allocates 12% of profits from the Crown Estate to support the monarchy’s official duties.

The Crown Estate is a vast portfolio of properties technically owned by the monarch but managed independently, with all profits going to the Treasury. The Sovereign Grant was introduced in 2012 to replace older forms of royal funding.

While the grant has remained static, palace officials highlighted that inflation has reduced its real value. Had it been adjusted for inflation, the grant would have totaled around £106 million this year. Additional income of £21.5 million ($29.5 million) was generated from royal properties not part of the Crown Estate, with increased revenue attributed to a record number of visitors to Buckingham Palace, especially tours of the newly refurbished East Wing.

Constitutional expert Craig Prescott of Royal Holloway, University of London, argued that royal funding remains modest relative to overall government spending and brings global attention to the U.K. He pointed out that major events like Queen Elizabeth II’s funeral and King Charles III’s coronation have drawn unprecedented international focus.

Over the past year, the king visited Australia and attended his first Commonwealth Heads of Government Meeting in Samoa. The royal family also played key roles in commemorations marking the 80th anniversaries of D-Day and V-E Day and hosted state visits by leaders of Japan and Qatar.

In total, royal family members carried out around 1,900 official engagements in the U.K. and abroad. Royal palaces hosted 828 events, welcoming approximately 93,000 guests.