Financial reports 2012-13

The annual expenditure funded by the taxpayer in support of The Queen’s official duties was over £3m less last year than it was five years ago, Buckingham Palace announced today at the publication of its first Annual Report under the new Sovereign Grant arrangements.

The reduction in expenditure was achieved mainly by an increase in income generated by the Royal Household to supplement the Sovereign Grant and lower expenditure on travel.

The Sovereign Grant Annual Report states that net expenditure for 2012-13 was £33.3 million (including VAT of £1.9 million) compared to £36.5m in 2008-9.

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

“In the year of The Queen’s Diamond Jubilee and the London Olympics the Royal Household has achieved a real terms reduction in expenditure on supporting The Queen’s official duties.

“The Royal Household has continued to reduce its expenditure funded by the taxpayer in successive years since 2008-9 achieving a real terms reduction of 24 per cent over the last 5 years.

“A significant part of the increase to the Sovereign Grant in 2013-14, supplemented by further income generation, will be used to tackle a backlog in essential property maintenance at the working Royal Palaces”

sovereign_grant_2012-13.pdf (417.26 KB)

Notes to Editors:

1. The official expenditure of The Queen is met from the Sovereign Grant 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 Sovereign Grant Act 2011 requires the National Audit Office to audit the financial statements of the Royal Household in respect of the Sovereign Grant and the Comptroller and Auditor General issued an unqualified audit opinion on the financial statements for 2012-13. This Annual Report was laid formally before Parliament on 27 June 2013.

3. The Sovereign Grant Act 2011 requires the Royal Trustees to report on the use of the Sovereign Grant at intervals of 5 years with the first report due in 2015-16.

4. The official expenditure of The Queen excludes the costs of Police and Army security and of Armed Services ceremonial, as figures are not available.