Kate Middleton’s parents’ COVID loan: Why taxpayers may be forced to pay off

Carole and Michael Middleton are getting fiscal.

Party Pieces, an event supply shop founded by the parents of royal Kate Middleton, went bust earlier this month — and now British taxpayers could be forced to pay the money the couple received during COVID, the Times UK has reported.

On May 18, Carole, 68, and Michael, 73, sold their business to entrepreneur James Sinclair for roughly $223,000 (£180,000) — 36 years after launching the company.

Prior to the sale, the Middletons were given a loan from National Westminster Bank [NatWest] during the 2020 lockdown to help keep their company afloat, and now owe the bank $273,500 (£220,000).

But even after the sale to Sinclair, taxpayers could be on the hook for the balance still owed to the bank — nearly $50,000 (£40,000) as government regulations regarding the pandemic loan program have made the public liable to pay 80% of any amount owed to NatWest.

The company has said that the coronavirus “caused constraints” and their sales plummeted in 2020, while current revenue has reached only about three-quarters of pre-pandemic levels, falling from £4.5 million to £3.2 million in 2022, according to the Times’ report.

Carole looked back on the fun times she had while working at her firm, reminiscing about how her kids — the Princess of Wales, 41, Pippa, 39, and James, 36 — would often help her out at work.

“Party Pieces has literally grown alongside my family, and I’m very proud of that,” she said in a 2022 interview with Sheer Luxe.

“My husband and I were young and a little inexperienced, but very enthusiastic, so we didn’t worry too much,” Carole explained.

She described how Pippa wrote the company’s “Party Times” blog, while James would bake the cakes. Eldest daughter Kate meanwhile developed the “first birthday” and “baby” categories for the brand.

“Partyware was a relatively new idea back then, so we worked hard to build our customer base and relied mostly on the odd letter or phone call for feedback,” Carole said.

The royal grandmother gushed over her supportive family; however, she also called them her “biggest critics.”

Their “honest feedback” was “invaluable in helping to shape the business,” she said.