Royal financial reports 2003-04 (original) (raw)

24 June 2004

HEAD OF STATE EXPENDITURE REDUCES IN REAL TERMS

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

Buckingham Palace today published for the first time a single combined report of 'Royal Public Finances', concerning funding provided by the taxpayer to finance the Head of State. The report states that Head of State expenditure for 2003/2004 at �36.8 million is 1.7% higher than in the previous year, which represents a decrease of 1% in real terms.

This slight increase relates mainly to expenditure attributed to more State Visits, major overseas tours and ceremonial costs. This is offset by the exclusion of one-off Golden Jubilee expenditure in 2002-03.

The largest area of funding is the Property Grant-in-Aid, which meets the costs of property maintenance, utilities, telephones and related services of the Occupied Royal Palaces. Its core funding will remain frozen at �15 million until 2005-06, having remained at that level for seven years.

Alan Reid, Keeper of the Privy Purse, said:

"For the last couple of years, we have indicated that the annual cost per person in the Country, in funding the Head of State, was equivalent to the cost of a loaf of bread. With the passage of time, the loaf of bread has become stale and this year's expenditure per person, per annum, amounts to 61 pence or less than the price of two pints of milk.

"Combining the various different sets of accounts into one single document is a further stage in achieving the greatest possible clarity and transparency in the finances of the Monarchy, where funds are provided by the taxpayer.

"The further reduction in real terms in the amount of Head of State expenditure reflects the continuous attention the Royal Household pays to obtaining the best value for money in all areas of expenditure, which in turn has helped to offset the increases in employment costs, where the Royal Household endeavours to ensure its employees are paid in line with market rates for comparable jobs. "

This combined report is available online.

Notes to Editors:

1. Head of State Expenditure is met from public funds in exchange for the surrender by The Queen to the Government of the revenue from the Crown Estate and other hereditary revenues. The Treasury receipts in respect of the Crown Estate were �170.8 million in 2002-03.

2. The 1972 Civil List Act requires The Royal Trustees to report on the Royal finances at least once every ten years. This reflected the view of the 1971 Select Committee, that ten yearly rather than annual reports were more consistent with the honour and dignity of the Crown. Royal Trustees Reports are required by law to be laid before Parliament. The last Royal Trustees Report was presented in July 2000. This Annual Report of the Civil List is not a Royal Trustees Report, and it is being published for information only. The Annual Report is not being laid formally before Parliament and its publication does not compromise the principles set out in the 1972 Act.

3. Head of State expenditure excludes the costs of Police and Army security and of Armed Services ceremonial, as figures are not available.

4. The Royal Collection Trust Annual Report (which does not involve public funds) will be published on 30 June 2004.