Statement on Royal Public Finances

Published 2 July 2012

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

ROYAL PUBLIC FINANCES

26% REDUCTION IN REAL TERMS OVER THREE YEARS

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.”