Published 5 July 2010

THE FOLLOWING ANNOUNCEMENT IS ISSUED BY THE PRESS SECRETARY TO THE QUEEN

Head of State Support
Reduction of £3million

Head of State support reduced for 2009-10 by more than £3 million – a decrease in real terms of 12.2 per cent, Buckingham Palace announced today at the publication of its annual report of Royal Finances.

This cut is due mainly to a reduction in commercial charter flights and a refund of lease rentals arising from the sale of The Queen’s helicopter, which was replaced last year.

The Royal Public Finances annual report states that Head of State support for 2009 was £38.2 million (including VAT of £1.9 million), compared to £41.5 in 2008.

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

“The Treasury contributed the equivalent of just 62 pence per person in the country to enable The Queen to carry out her duties as Head of State.

“The Royal Household is acutely aware of the difficult economic climate and took early action to reduce its Civil List expenditure by 2.5 per cent in real terms in 2009. We are implementing a headcount freeze and reviewing every vacancy to see if we can avoid replacement.

“Property Services funding will be reduced by £0.5 million this year. Work will continue on assessing the condition of the Estate, but it is acknowledged that the necessary cuts in public expenditure will have an impact on the backlog of essential maintenance which it is hoped can be addressed in the longer term.”

“In the meantime, the Household is continuing to pursue opportunities to reduce costs and generate income from the Estate’s assets, including commercial lettings and management charges.”

This combined report is available online at www.royal.gov.uk