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THE
COST OF THE MONARCHY
Compares most favourably with costs of Heads of State elsewhere.
There are many misunderstandings about the cost of the monarchy,
many of them perpetuated by republicans and journalists who deliberately
give inaccurate information. For example, as to how many members
of the royal family are receiving income from the Civil List. The
following sets out to explain the facts and to equip members to
challenge any inaccuracies which they see or hear in the media.
The Queen and her household has four
sources of funding- the Civil List, Grant-in-aid, the Privy Purse
and private income. The first two, which cover official expenditure,
are not taxed. The Privy Purse is fully taxable subject to a deduction
for official expenditure. The Queen pays tax on her personal income
and capital gains. The Civil List is the sum provided by Parliament
to meet the official expenses of the Queen as Head of State. About
70 per cent of Civil List expenditure goes to pay the salaries of
staff working directly for the Queen. Their duties include dealing
with state papers and organising the Queen's public engagements,
meetings, receptions and official entertainment including royal
garden parties. In other words the whole range of activities expected
of the head of state, whether president or monarch.
The £132.9 million profit of the Crown Estate for the year
ending March 31st, 2000 was paid to the Exchequer for the benefit
of taxpayers. This sum far exceeds the total cost of the monarchy.
The Queen's Civil List has been fixed at £9.7 million per
annum until 2011. Full details of royal household expenditure are
published. A summary of these follows. The annual cost of the monarchy
is approximately £37 million.
Prince Philip is the only member of the royal family to receive
an annuity from the Civil List of £359,000. The annuities
of other members of the Royal Family who carry out engagements are
provided by the Queen from the Privy Purse. The Revenue for this
is obtained from the Duchy of Lancaster, an independent possession
of the Sovereign since 1399. It is not included in the National
Asset Register of government holdings published by the Treasury.
The Prince of Wales derives his income on which he pays tax. The
occupied royal palaces- principally Buckingham Palace, St. James's
Palace, Clarence House, parts of Kensington Palace and Windsor Castle
- are funded by grant-in-aid. Obviously they would be maintained
by the state whether Britain were a monarchy or not. The unoccupied
palaces such as the Tower of London and Hampton Court Palace are
maintained from visitor admissions.
Royal transport, required to enable the royal family to carry out
almost 3,000 engagements year is also funded by grant-in-aid. Of
course official travel would have to be paid for if Britain were
a republic.
Privately the Queen owns Balmoral and Sandringham and some smaller
properties. Estimates of the Queen's wealth often mistakenly includes
items which are held by the Queen as sovereign. These include the
royal palaces and art collections. It is interesting to note that
far from being Britain's wealthiest person the Queen is 105th on
the Sunday Times 2001 Rich List!
In republics not only do presidents have to be supported financially,
as do former presidents and widows, but their official duties have
to be paid for and official and historic residences maintained.
And there is the added expense of periodic elections. Republics
show great reluctance in publishing the cost of the heads of state
but the cost of the British monarchy compares extremely favourably.
Head of State Expenditure met from Public Funds
Year to 31st March 2003
Year to 31st March 2003 2002
|
|
|
|
£m |
£m |
The Queen’s Civil List * |
|
|
|
9.7 |
8.2 |
Parliamentary Annuities |
|
|
|
0.4 |
1.0 |
Grants-in-aid |
|
|
|
21.4 |
21.1 |
Expenditure met directly by Government Departments
and the Crown Estate |
|
|
|
4.7 |
5.0 |
Total |
|
|
|
36.2 |
35.3 |
Head of State expenditure is met from public funds in exchange
for the surrender by The Queen of the revenue from the Crown Estate.
Head of State expenditure for 2002-03, at £36.2 million, is
2.5% higher than in the previous year (a decrease of 0.6% in real
terms). The £0.9 million increase is mainly attributable to
increased expenditure on the Property Services Grant-in-aid with
a large building project (the refurbishment of Clarence House) undertaken
during the year, expenditure on The Queen’s Golden Jubilee
and increased Information Technology expenditure. This is offset
by a reduction in Parliamentary Annuities following the death of
Queen Elizabeth The Queen Mother and reduced spending on ceremonial
occasions since there were no State Visits during 2002-03.
Head of State expenditure has reduced from £87.3 million (expressed
in current pounds) in 1991-92, a reduction of 59%.
Head of State expenditure excludes the costs of Police and Army
security and of Armed Services ceremonial, as figures are not available.
Figures are for calendar years 2002 and 2001
The Queen's Civil List
Year to 31st December 2002 2001
The Civil List is the
funding provided by Parliament, on a 10 yearly cycle, to meet the
central staff costs and running expenses of Her Majesty’s
official Household. 70% of the Civil List is spent on salaries and
other employment costs. Civil List expenditure increased by 19.7%
during 2002 as a result of the Golden Jubilee (£0.4 million
mainly temporary staff )x, increased Information Technology expenditure
(£0.2 million), inflationary increases and the full year impact
of the transfer of expenditure to the Civil List from other funding
sources (£0.5 million). This transfer was with effect from
1st April 2001, to utilise the Civil List reserve brought forward
at the beginning of this 10 year funding period. Because the Civil
List and the other funding sources have different financial year
ends, only nine months of this expenditure is charged to the Civil
List in 2001 and the full impact seen in 2002.
The expenditure transferred
is principally in respect of:
(a) pension contributions for Civil
List staff (from the Consolidated Fund);
(b) porters and non-domestic
cleaners at Buckingham Palace and Windsor Castle, furnishings and
the State Apartments at St. James’s Palace (from the Property
Services Grant-in-aid); and
(c) information technology equipment
(from the Cabinet Office).
A detailed annual report showing how the Civil List has been spent
during 2002 is available from the Deputy Treasurer to The Queen,
Buckingham Palace, London SW1A 1AA.
Parliamentary Annuities
Year to 31st March 2003 2002
The Parliamentary Annuity was paid
to The Duke of Edinburgh (and also Queen Elizabeth The Queen Mother
in 2001-02). The annuity was primarily to meet official expenses
incurred in carrying out his public duties. Parliamentary Annuities
paid to other Members of the Royal Family are reimbursed by The
Queen.
Grants-In-Aid
Year to 31st March 2003 2002
| |
£000 |
£000 |
| Property Services |
16,627 |
15,522 |
| Communications and Information |
526 |
643 |
| Travel by Air and Rai |
4,241 |
4,936 |
| Total |
21,394 |
21,101 |
Grants-in-aid are provided to the Royal Household annually by the
Department for Culture, Media and Sport for Property Services and
Communications and Information, and by the Department for Transport
for Travel by Air and Rail.
Property Services
The Grant-in-aid is to meet the cost of property maintenance, and
of utilities, telephones and related services, at: Buckingham Palace,
St. James’s Palace, Clarence House and Marlborough House Mews,
the residential and office areas of Kensington Palace, the Royal
Mews and Royal Paddocks at Hampton Court, and Windsor Castle and
buildings in the Home and Great Parks at Windsor. These Palaces
and buildings are used by The Queen in fulfilling the role and functions
of Head of State, and also need to be maintained as important parts
of the national heritage. Approximately 1,000 people work in them,
with approximately 70,000 guests annually and 1.6 million paying
visitors. The most significant project during 2002-03 was the refurbishment
of Clarence House which is due for completion in summer 2003.
Government Departments’ expenditure in support of the Golden
Jubilee will be set out in “Her Majesty The Queen’s
Golden Jubilee: Official Report” to be published by the Department
for Culture, Media and Sport.
Communications and Information
The Grant-in-aid is to meet the cost of communication and information
services in connection with official royal functions and engagements
in England and Scotland. Expenditure is incurred principally in
respect of press officer support for royal visits (at 99 locations
during 2002-03) and the development and maintenance of the Royal
Website (there were 60 million page references in 2002-03).
Royal Travel
The Grant-in-aid is to meet the cost of official royal travel by
air and rail. It is an important part of The Queen’s role
as Sovereign, supported by the Royal Family, to act as a focal point
for national life and to bring people together across all sectors
of society. Approximately 2,300 official engagements were undertaken
by Members of the Royal Family in 2002-03. These involved a significant
amount of travel that needs to be undertaken in a way which meets
efficiency, security and presentational requirements.
Detailed annual reports on how the Grants-in-aid have been spent
are available from the Deputy Treasurer to The Queen, Buckingham
Palace, London SW1A 1AA.
Expenditure Directly by Government Departments and the
Crown Estate
Year to 31st March 2003 2002
| |
£000 |
£000 |
| Administration of honours |
410 |
432 |
| Equerries and orderlies |
957 |
914 |
| Maintenance of the Palace of Holyroodhouse |
2,253 |
2,147 |
State Visits to and by The Queen and liaison
with the Diplomatic Corps |
310 |
575 |
| Ceremonial occasions |
52 |
312 |
| Maintenance of the Home Park at Windsor Castle |
587 |
592 |
| Notional pension contributions |
43 |
45 |
| Other |
56 |
24 |
| Total * |
4,668 |
5,041 |
Administration of honours
This expenditure is to meet the cost of the Central Chancery of
the Orders of Knighthood. It is responsible for administering and
maintaining the records of the Orders of Chivalry, for organising
the investitures at which the honours are presented by The Queen
and for the distribution of the insignia.
Equerries and orderlies
Equerries and orderlies are seconded from the Armed Services to
assist The Queen and other Members of the Royal Family in undertaking
their official duties. Baggage transport is also charged to this
heading.
Maintenance of the Palace of Holyroodhouse
The Palace of Holyroodhouse is The Queen’s official residence
in Scotland. Members of the Royal Family stay there for several
weeks during the year, while undertaking official duties. The Palace
is also open to the public with 232,000 paying visitors in 2002-03.
The Queen opened the new Queen’s Gallery on 30th November
2002 which attracted 28,000 paying visitors in 2002-03.
• Figures not audited
State Visits to and by The Queen and liaison with the Diplomatic
Corps
During 2002-03 The Queen made a Royal Visit to Canada. In 2001-02
there were two outward State/Royal Visits and two inward State Visits.
The Marshal of the Diplomatic Corps is responsible for liaison with
the Diplomatic Corps in London. An annual reception for the Diplomatic
Corps is held at Buckingham Palace or Windsor Castle.
Ceremonial occasions
The costs are to provide stands, barriers, flags, daises and canopies
for State Visits and other ceremonial occasions. The decrease in
expenditure reflects the fact that there were no inward State Visits
in 2002-03 and two in 2001-02.
Maintenance of the Home Park at Windsor Castle
The Crown Estate is responsible for the maintenance of the Home
Park at Windsor Castle and for its day-today security. The Home
Park provides accommodation and sports grounds for staff. Part of
it is farmed with rent payable by the Privy Purse to the Crown Estate.
Costs Funded From Other Sources
Duchy of Lancaster
Income from the Duchy of Lancaster, which is subject to tax in the
normal way, funds the Privy Purse. It is The Queen’s private
income although largely used by Her Majesty to meet official expenditure,
in particular reimbursing Parliamentary Annuities and meeting expenses
of other Members of the Royal Family. The Privy Purse also pays
for the upkeep of Balmoral, The Queen’s estate in Scotland.
Accounts for the Duchy of Lancaster are published and laid before
Parliament annually.
Duchy of Cornwall
Income from the Duchy of Cornwall, which is also subject to tax
in the normal way, funds the official duties of The Prince of Wales.
Accounts for the Duchy of Cornwall are published and laid before
Parliament annually.
The Royal Collection
The Royal Collection consists of works of art of all kinds and is
held by The Queen as Sovereign in trust for her successors and for
the nation. All costs, except for some building occupancy costs,
are met by the Royal Collection Trust from visitor admissions to
the occupied palaces and from related activities. Five million people
saw the Royal Collection in royal palaces during 2002-03. In addition
over 1,300 items were loaned to special exhibitions or formed part
of the Royal Collection’s own travelling exhibitions. During
2002-03 £872,000 was spent on conserving items from the Collection
and £2.1 million on new galleries, in which works of art from
the Collection are displayed to the public. The Royal Collection
receives no funding from the Government or the National Lottery.
An annual report is published
by the Royal Collection Trust. Copies are from the Secretary,The
Royal Collection Trust, St. James’s Palace, London SW1A 1BL.
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