Financial reports 2011-12

Published 2 July 2012

The Queen’s Official Expenditure for 2011-12 funded by the equivalent of the new Sovereign Grant has decreased by 26% in real terms over the last three years. The total expenditure in the year was £32.3m as against £32.1m in the previous year and £36.5m three years ago. 

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

“When the Chancellor of the Exchequer announced his plans for public expenditure to reduce by 25% in real terms over a four year period, The Queen was very keen that the Royal Household should play its part in reducing its expenditure accordingly. We are pleased to report that we have achieved this reduction a year ahead of the public expenditure target and managed to transfer £3.3million to the Sovereign Grant Reserve.

“The decrease in expenditure is due mainly to the continuation of a pay freeze, increased income generation, and the deferral of property maintenance expenditure.

”Expenditure during this Diamond Jubilee year will require the use of reserves as the first year of the Sovereign Grant provides for funding of only £31m.”

Notes to Editors:

1. The Sovereign Grant 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 £240.2 million in 2011-12.

2. The 1972 Civil List Act requires the Royal Trustees to report on the Royal finances at least once every ten years. Royal Trustees Reports are required by law to be laid before Parliament. The last Royal Trustees Report was presented on 22 June 2010 and the final Royal Trustees report on the Civil List will be published on 2 July 2012 This Annual Report 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. The Queen’s Official Expenditure excludes the costs of Police and Army security and of Armed Services ceremonial, as figures are not available. Expenditure which is incurred by Government departments in support of The Queen but falls outside of the Sovereign Grant is also not included in this report.

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