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Austerity Queen 'will run out of money by Diamond Jubilee'
Sri Carmichael, Royal Reporter5 Jul 2010
The Queen is engaged in an unprecedented austerity drive as accounts reveal she will run out of money within two years.
Figures released today show the royal household will be “broke” by 2012 — the year of the Queen's Diamond Jubilee — unless urgent action is taken.
The accounts reveal she was forced to take a record £6.5 million from cash reserves just so that she can fulfil her duties.
The Queen has only £15.2 million remaining of reserves and is expected to draw down a further £7.2 million this year, leaving £8 million, or little more than one year's money, left in the pot.
The cash flow crisis has forced palace officials to take the axe to every aspect of the Queen's spending including stationery, staff, uniforms and soft furnishings.
Senior aides have had their salaries frozen and a recruitment freeze has been imposed. Spending on furnishings and equipment fell from £400,000 in 2008 to £300,000 last year, while spending on uniforms and protective clothing halved from £200,000 to £100,000.
Half as much was also spent on computers and information systems — down from £400,000 to £200,000. Spending on equerries and orderlies was £1 million in the year to 31 March 2010, down from £1.4 million the year before.
Sir Alan Reid, Keeper of the Privy Purse, said: “The royal household is acutely aware of the difficult economic climate. We are implementing a headcount freeze and reviewing every vacancy to see if we can avoid replacement.”
The accounts, for the financial year 2009-2010, show taxpayers spent £3 million less on funding the monarch this year than they did last year.
She now costs each Briton 62 pence a year, down seven pence on the year before. Once inflation is taken into account, the Queen has seen her state support drop by 12.2 per cent in real terms from £41.5 million to £38.2 million in the year 2009-10.
Her civil list expenditure — which pays for the running of the royal household including staff salaries — went up £300,000 to £14.2 million.
The Queen's budget shrank largely due to less use of commercial charter flights and cuts in travel. Official royal trips cost £3.9 million compared with £6.5 million the year before.
The accounts also show two of the Queen's most important employees have taken substantial pay cuts. Sir Alan saw his own salary fall from £194,000 to £180,000, while the monarch's private secretary Christopher Geidt saw his pay drop from £155,000 to £146,000.
Sir Alan said: “We're freezing the salaries of senior staff so we can provide worthwhile increases for those on lower salaries. We want to be fair to the lower paid as that seems right in the economic climate. Property services funding will be reduced by £500,000 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.”
Chancellor George Osborne announced as part of his Budget that the civil list payment will remain frozen for the coming year. But he hinted that “a new means of consolidated support” would be proposed at a later date.
Sir Alan said that a new system will be in place by 2012 — in time to prevent further financial problems. He added: “This year we will be discussing with the Government a new system to provide support for the Queen. It will be in place by 1 January 2012. It would be helpful if the Government rolled together all the grants as it would allow us to manage the household finances more effectively.”
| Key items of palace spending | |||
| 2009/10 | 2008/09 | ||
| Garden parties | £700,000 | £600,000 | |
| Food and kitchens | £500,000 | £500,000 | |
| Recruitment and training | £300,000 | £300,000 | |
| Stationery | £300,000 | £200,000 | |
| Legal advice | £200,000 | £200,000 | |
| Computers and IT | £200,000 | £400,000 | |
| Housekeeping | £300,000 | £300,000 | |
| Furnishings | £300,000 | £400,000 | |
| Carriage processions | £100,000 | £100,000 | |
| Uniforms and protective clothing | £100,000 | £200,000 | |
| Cars and other vehicles | £100,000 | £100,000 |
Reader views (40)
I would take the Queen and Royal family anyday over our overpaid, underworked corrupt politicians who have bankrupted our country. President Obama (the unions own this guy)is the successor of a long line of morally bankrupt, corrupt politicians representing special interest groups (unions) not the american public. The Royals arent perfect but they do it with class. Best wishes to the U.K.from the U.S.
- Greg, Chicago, IL, USA, 13/07/2010 05:00
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This is so obviously a ploy to make the British public feel sympathetic towards the Royal family and also to create the illusion that they understand what the "common" person is going through. Note they only say cash is low - not the trillions they own in property, land, art works, antiques, investments, companies etc. My heart bleeds for them.....NOT.
- Andrew Williams, Chester, Cheshire, 06/07/2010 06:38
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Wouldn't call myself a Royalist but realistically, we would have much less tourism if it wasn't for the monarchy still being around. It heavily relies on the global appeal of the Royals.
Or do tourists really come to London for the weather, overpriced sub-standard food, the odd landmark or Oxford Street? Probably not.
- Cee Jay Dee, London, 06/07/2010 02:00
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Reign the kids in then and dont give em as much spendo.
- stuart, chesterfield,derbyshire, 05/07/2010 22:29
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It's all been said - so , "Off with their heads"
- B.J.Hedges, Coleraine , N. Ireland, 05/07/2010 21:26
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its quite clear that the Monarchy is not needed anymore,she might be the the Queen but I don't think she knows whats going on around her with her kids, gran kids and daughter in laws.To me its modern dictatorship,ware the public have no say,Viva PRESADENCE..
- Kc, LondonBoy, 05/07/2010 19:14
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We should keep the Queen whatever the cost, because the alternative.....a President Brown, or "Dave....is too unacceptable.
- Mike Coventry, Hertfordshire GB, 05/07/2010 18:57
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Jay - yes, the cash does go to the government rather than having her coming round to your house... And if it didn't, Mr Osborne would add it to your tax bill.
And Michaella - if your question is about UK law then the buildings do belong to her. She does follow UK law for listed buildings and they cost a lot to keep in working order. I must admit, architecturally I really don't like Buckingham Palace so that one I don't care much about. As for the rest, do you really want such spectacular buildings to fall to ruins? Wouldn't be my choice.
- Stuart Pinel, London, 05/07/2010 18:30
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And there was me worrying today about being £12 overdrawn and facing a £20 bank charge. Some people just have it so hard dont they? So difficult for the Queen, I weep for her.
- Matthew Q, London, UK, 05/07/2010 18:19
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The Queen does a great job, but she doesn't pay for foreign trips, the visiting country does.
Has any one looked at how many support staff with fatuous titles she has?. Are Crown Estates properties being maxised? Why is she supporting anyone save her husband. All her kids are over 18.
You can't plead poverty when you have £350 million, and this report seems to condone present pratices as against asking real time questions.
Protect the Queen, she does a great job, always has but if the others can't make a go of it then they suffer like everyone else.
If Osborne is prepared to hit home with the truths about Labours demented spending most noticeably Mandlesons, then we shoudlk have some honesty with regards to the Queens funding. Yes it may be distasteful but she carries a lot of baggage that is well past its sell by date.
Sure she is a senior citizen but there has been a stratosperic change in thinking and if she can handle an ipod she can understand appraisals and reviews on what the State will and wont pay.
God Bless her always but that doesn;t mean we dont look at the flunkies and excess she is carrying.
She is smart and ahead of the game and who would play poker against her but that doesn;t mean reality isn't addressed.
Just as Prince Philip calls a spade a spade for too long the issue of cost has been avoided for good taste. Well we all are suffering a bitter taste now and thepast is the past was a long time ago.
- Robert Marshall, London, 05/07/2010 18:08
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How much of our generous foreign aid goes straight into the coffers of Presidential families and assorted ‘comrades’, and their families from the third world? How much of it all ends up in secret bank accounts in Switzerland? Genuine poverty seems as widespread as ever but President So-and-So and his family and assorted hangers-on still travel in some luxury and dine out in the flesh pots of Europe with their platinum Amex cards. The common people go hungry and uneducated, but their collective leaderships seem blind to the plight of their own poor and needy. While all the time charities demand more and more donations from us all to funnel funds into – who knows where, but things never seem to change. We British charitable donors and tax-paying mugs don’t have a say in all that wicked selfishness. If the queen and the royal family cost me only 62p a year – then I am quite prepared to pay twice that amount, or whatever it costs within reason to maintain the best pageantry in the world.
- Proper Charlie, Birmingham, 05/07/2010 17:11
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So - if the government keep over 95% of the money and yet the papers say that we give 64p each to the queen, does that mean that she gives us £12.16 each? If so, thank you Ma'am.
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No, it doesn't mean that at all. I'll believe that when she comes round to my house and gives it me personally.
It goes to the government, that's hilarious. Might aswell throw it in the Thames, would make little difference when you look at what they spend it on.
- Jay, England, 05/07/2010 17:00
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Perhaps air miles Andy and bone idle Edward could be persuaded to seek gainful employment and fund their own lavish lifestyles. Apart from Andy's very brief spell in the royal navy and Edward's failed attempts at training for the marines, neither of them have done a day's work in their lives. If all else fails she could always sell a couple of castles - as any one of them should be big enough for herself, Philip and her freeloading family.
- R.F. York, Yorks, UK, 05/07/2010 17:00
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Used to be an ardent royalist but not anymore. HM has broken her coronation oath on many occasions by giving Royal Assent to EU treaties which hand OUR sovreignty to the EU. I believe thats called treason.
We the people are sovreign, HM Queen is a representitive of that sovreignty. It's not Her's to give away.
I know abit about constitutional law because Lord St. John Stevas once said "Allo" to me while I was sweeping up outside the House of Lords.
- Tommy the Broom, East London., 05/07/2010 16:58
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I find the whole thing pretty ridiculous. Why do they need all those palaces? Don't they belong to the British people? What about the Art and the jewellery? Rent everything out to millionnaires and film companies. Make the property of the British people work for the nation!!!
Is divine right really divine?
- Michaella, London UK, 05/07/2010 16:47
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Since all revenues from the Crown Estates are passed to the Exchequer in exchange for the Civil List, the Monarchy is in fact not only self-financingbut also makes a substantial contribution to suporting all Government expenditure - it is a fallacy to suggest that the Royal Family cost the State anything.
Greater clarity would be achieved by allowing the Crown to cover its costs from income and then pay tax on the residual 'profits' (even at a rate of 100%) - this would also enable the Crown to maintain the fabric of the palaces etc. in an appropriate condition without having to go 'cap-in-hand' to the Exchequer.
- Paul G, Newbury, UK, 05/07/2010 16:44
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Yet another comment on how much the royal family 'costs' citizens. I wonder how many people appreciate where the money REALLY comes from.
How many folk have heard of the Crown Estates? This is a very large amount of land which is the direct property of the Royal Family. And the question should be what happens to the rents (approx £190m a year)? Why, they go to the government. A part of this is then paid as the civil list to the Royal Family each year. This was the agreement. So the royal family pay £190m each year and get back £7.9m.
Is there a fix... yes, there is. It is this - this is what exempts the royal family from death duties the rest of us have to pay. It would take centuries for this to really decrease to where they only got the value from the land that they get back from the civil list.
So - if the government keep over 95% of the money and yet the papers say that we give 64p each to the queen, does that mean that she gives us £12.16 each? If so, thank you Ma'am.
- Stuart Pinel, London, 05/07/2010 16:43
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considering it was all nicked by a bunch of pirates in the first place,,,,,andrew is now the biggest.. free loader,,,followed closely by everyone else,,,,,it should be the queen ,,,that gets the money,,,, the rest will just have to sell big issue,,,,by appointment,of course,,,
- les, crowborough england, 05/07/2010 16:24
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Well said Helen.
'It's easy to have a go at her. She does not speak back.'
You're damn straight she doesn't, what right does she have to complain about anything? She hasn't, that's why she keeps her mouth shut.
- Jay, England, 05/07/2010 15:47
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I was quite amazed to be told on a visit to New York that "Your Queen owns apartment(s) overlooking Grand Central {Park). Possibly the most expensive real estate in the USA". What else was tucked away for this family's use. Edward tried to work in films and in the Army and got chucked out, his wife sold her PR comments to a customer and Andrew since he left the Navy has never done a decent days work. We also keep every hanger on, including Charles and Camilla, Andrew's daughters, the Kents and most of the grandchildren. Only worker in this family is Princess Anne.
Makes me angry when I see youngsters trying to make their money go round at the moment.
- Amber in mitcham, Mitcham Surrey, 05/07/2010 15:45
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Im sure with her knowledge she will find a job before the year is out,although I recommend she does not work for the public sector as she may find herself out of work very soon.
- dave, london, 05/07/2010 15:43
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The Queen costs less than a President Patrick ? Really ? Do you have any data to back up this frankly absurd statement ?
Presidents don't come with an extended family of scoungers, sons who have never done a day's work in their lives but are still supported in a life of luxury in their 60s by the taxpayer via mummy. Not to mention the huge personal wealth accumulated by the family over centuries of holding an incredibly lucrative unelected position.
- Helen, London, 05/07/2010 15:12
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Has she not heard of working tax credits?
- East, London, 05/07/2010 15:06
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I have a lot of respect for the Queen (less for some members of her family) but I do wonder whether she could not do a "deal" on some of her immense wealth. For example, she regards much of her priceless collection of art (including several Leonardo's) as her private property. This is debatble in that much of the art came to her predecessors by virtue of their status as Head of State. However, could HMG not do a deal to transfer this art to the State so we could all enjoy it?
- Alan J, London, 05/07/2010 14:50
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Looks like she'll have to cut back on Hols, sorry love only Barbados for 2 months next year.
Put her in a 9-5 I say. I have no time or respect for the Monarchy and have no reason to, she's got enough worshipers already. Let them bow to her while she laughs at them counting her millions and oogling her multi-million pound art collection, some pieces that she's never even bothered to look at or is aware she even owns.
- Jay, England, 05/07/2010 14:12
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tupperware party with Fergie and her 'caught in the headlights' daughters hosting ?
- The S., London UK, 05/07/2010 13:46
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This report is utter rubbish....
- Gary, Lightwater Surrey, 05/07/2010 13:44
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Sell a few paintings - problem solved.
- James, London, 05/07/2010 13:33
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It breaks me heart - tell her sonny boy to flog Cornwall and make all members of the Lords to pay a cash tribute to her. She ain't getting nothing from me.
- Fred, London, 05/07/2010 13:24
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The Queen is our head of state. She is better than any political president and costs less than they would. It's easy to have a go at her. She does not speak back.
So leave off her Majesty
- Patrick Mc Crossan, LONDON, 05/07/2010 13:23
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What a load of dishonest drivel, as the world's prime golf courses and sporting events bear witness, none of this so called austerity has affected the queen's children, grandchildren and various hangers on from continuing to have a fabulous free lifestyle care of us tax payers.
Regardless of the woffle being attempted by royal servants, Prince Charles alone has never it seems been taught how to do a thing for himself, hardly surprising with 128 servants surrounding him.
If the royals are so hard up, let them have a sale of just 25% of the totally hidden hoarded treasures in the multiple layered basements of Buckingham Palace alone, without mentioning other crown properties.
Try grounding Prince Andrew to trains and public transport for a start.
The Royal household is heading for a true crisis with the paying public should they continue with this stupid dishonesty, the public really are facing tough times, caused by politicians too busy lining their pockets to limit risks being taken by the privileged banking fraternity.
I would advise the royal family to stop any 'poor me' performance before it starts, we have had, and are still having attempts made by MP's to continue with their version of licenced theft.
Time to stop all of this before the public become angry enough to do it themselves and with 10,000 service personnel overseas putting their lives at risk 24/7 to keep such freeloaders in their privileged lifestyles, is not a sensible time to whine.
- Concerned Observer., Harrow, 05/07/2010 13:20
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Only £300,000 on soft furnishings.
God bless you maam.
- STG, Peckham, London, 05/07/2010 13:20
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Dvid Cameron said - we are all in this together?
- tex ex crim, uk, 05/07/2010 13:20
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How big of her senior staff to take pay cuts, what on earth do they do to earn salaries that big in the first place? I'll be her personal secretary for £146,000 a year, which is 5 years of work from my current job!
- Clare, London, 05/07/2010 13:16
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Who cares about this bunch of professional scroungers? None of them would know a days work if it slapped them in the face.
- Stephend, London, England, 05/07/2010 13:15
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Tell her to flog some of the gear we bought for her,e bays a good medium.
- Elliot Porter, London, 05/07/2010 13:13
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This article makes no reference to the Queen's personal wealth, which Forbes estimated to be about £350 million in 2008. That in a savings acount paying only trhee per cent would give more than £10 a year in interest.
It kind of puts this story into a more realistic context, don't you think?
- Danny Bananas, Sutton, 05/07/2010 13:12
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I bet there are more bloated flunkies prancing about in the Royal Household than there are hypocritical parasites loitering with intent in the House of Conmen.
- Reuben Camara, Plot 1, Morecambe Compound, EUSSR, 05/07/2010 13:08
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How much are we paying for Tony Blair to live his private life earning millions.Giving nothing to this country.
- David Smith, Croydon, 05/07/2010 13:08
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Sorry folks, but it's hard to feel any great sympathy. She's hardly going to "suffer" is she? She could send her broken and old gold to these "cash4gold" type places...she'd get a few quid for it all.
- jb, sussex, 05/07/2010 12:47
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