The Queen’s Official Expenditure for 2010-11 funded by the equivalent of the new Sovereign Grant has decreased by 5.3%. The total expenditure in the year was £32.1m.
Sir Alan Reid, Keeper of the Privy Purse, said:
“The Queen is very keen that the Royal Household should continue to reduce its expenditure in line with public expenditure reductions.”
“The decrease in expenditure is due mainly to increased income generation, the deferral of property maintenance expenditure and the implementation of a pay freeze. This pay freeze will continue onto this year.
“Over the past five years The Queen’s Official Expenditure has reduced by 19% in real terms and while the Royal Household will continue to identify efficiencies it will be very difficult for overall expenditure to reduce very much further without impacting on the Royal Household’s activities in support of The Queen and the long term health of the estate.”
In October 2010 the Chancellor of the Exchequer announced a new system of funding The Queen’s Official Expenditure to be known as the Sovereign Grant and the proposed legislation is currently before Parliament. Therefore, it is appropriate to report on Royal Finances for the year to March 2011 on the Sovereign Grant basis.