Published 29 June 2009

The Treasury contributed the equivalent of 69 pence per person in the country to enable The Queen to carry out the duties of Head of State, 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 on property and travel, states that Head of State expenditure for 2008-09 at £41.5 million (including VAT of £2.1 million) has increased by 1.5% in real terms. Over the past eight years it has decreased in real terms by 1.3%.

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

“The money provided by the taxpayer to enable The Queen to fulfil her role as Head of State, is equivalent to 69 pence per person in the country . This is the annual cost, not the daily, weekly or monthly cost and is lower in real terms than it was in 2001.

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

“The year under review has seen significant investment in IT projects with the launch of the new British Monarchy website and the implementation of new personnel, payroll and on-line recruitment systems.

“Increased expenditure on Property Maintenance in 2008-09 was made possible by increased receipts from commercial lettings and the Royal Collection.

“Expenditure on Royal Travel has increased due principally to lower availability of aircraft from the RAF and the consequential increase in the use of commercial charter aircraft, often at short notice..

“Last year, we reported that with no increase in funding over the next 10 years the backlog in essential maintenance projects was estimated to be £32 million by 2018.

“Allowing for the cost of re-decorating the State Rooms at Buckingham Palace, and Windsor at £4.5million, a further year without an increase in funding and revisions to estimates of repairs, it is estimated that the backlog will have increased to £40million by 2019.

“We will continue to work with the Department of Culture, Media and Sport to agree the criteria for assessing the backlog and thereby improve the estimate of the additional funding required,” he added.

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 £211 million in 2007-08.

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, as figures are not available.

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