Andrew Milligan/Pool via REUTERSLONDON, July 20 (Reuters) - The British government said on Thursday it would cut the proportion of funds going to the royal family from the Crown Estate next year, after King Charles said he wanted bumper windfarm profits to go to the "wider public good". The Sovereign Grant, which last year was worth 86.3 million pounds ($111 million), is typically based on 15% of Crown Estate profits but has been temporarily increased to 25% to pay for extensive refurbishment work at Buckingham Palace. However, new deals for offshore wind farms struck in January are expected to see Crown Estate profits surge by 900 million pound a year, and Charles had indicated he wanted this extra money to go the wider good. On Thursday, the Treasury said the Sovereign Grant next year would be cut to 12% of Crown Estates' profits, meaning it will remain at 86.3 million pounds but will be 24 million pounds less than if the rate had not changed. ($1 = 0.7747 pounds)Reporting by Sarah Young and Michael Holden; Editing by Kate HoltonOur Standards: The Thomson Reuters Trust Principles.

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Persons: King Charles, Andrew Milligan, Grant, Sovereign Grant, Charles, Jeremy Hunt, Sarah Young, Michael Holden, Kate Holton Organizations: Scottish Borders, REUTERS LONDON, Treasury, Sovereign, Estates, Thomson Locations: Selkirk, Scottish, Scotland, Britain, Holyrood, Buckingham