Financial reports 2006-7

Published 28 June 2007

The Queen as Head of State continues to cost the taxpayer just 62 pence per person per year – less than the price of two first class stamps -  Buckingham Palace announced today at the publication of its annual report of  royal finances. 

The Royal Public Finances annual report, which includes details of public expenditure, states that Head of State expenditure for 2006-07 at £37.3 million is 0.3% lower than in the previous year.  Over the past six years it has decreased in real terms by 7.0%. 

Sir Alan Reid, Keeper of the Privy Purse, said: 

“The annual cost per person in the Country, in funding the Head of State, amounts to 62 pence - the same as last year.  This is the annual cost, not the daily, weekly or monthly cost.  We are pleased that the total cost of the Monarchy is now 7% lower in real terms than it was in 2001.

“The reduction in the amount of Head of State expenditure reflects the continuous attention the Royal Household pays to obtaining the best value for money in all areas of expenditure.  

“In the current year there was a real decrease in expenditure of 2.7% due mainly to a reduction in refurbishment costs at the Palace of Holyroodhouse, offset by increased costs in dealing with a greater number of Freedom of Information enquiries.

“Following the leadership role of The Prince of Wales, the Royal Household has started working on measuring its carbon footprint and is developing further action plans for reducing it. Success has been achieved in reducing carbon emissions on gas and electricity by 1,000 tonnes or 12 per cent during the year through lower energy consumption and the introduction of a new Combined Heat and Power Plant at Windsor Castle. The Royal Household has been committed to energy saving since 1985 and proactively responds to the requirement of the environmental imperative.

“However, since the allocation of the Property Grant-in-Aid was fixed by the Government in 1991, it has effectively been reduced by 69 per cent in real teams. Now there is a critical backlog in maintenance projects and if our historic buildings are to remain safe it is essential that the grant is increased by £1 million per year.”

 (PDF, 617KB)

Notes to Editors:

1.    Head of State Expenditure is met from public funds in exchange for the surrender by The Queen to the Government of the revenue from the Crown Estate and other hereditary revenues.  The Treasury’s gross receipts in respect of the Crown Estate were £188 million in 2005-06.

2.    The 1972 Civil List Act requires The Royal Trustees to report on the Royal finances at least once every ten years.  This reflected the view of the 1971 Select Committee, that ten yearly rather than annual reports were more consistent with the honour and dignity of the Crown.  Royal Trustees Reports are required by law to be laid before Parliament.  The last Royal Trustees Report was presented in July 2000.  This Annual Report of the Civil List is not a Royal Trustees Report, and it is being published for information only.  The Annual Report is not being laid formally before Parliament and its publication does not compromise the principles set out in the 1972 Act.

3.    Head of State expenditure excludes the costs of Police and Army security and of Armed Services ceremonial.