28 June 2006

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

The Queen as Head of State costs the taxpayer just 62 pence per person per year, Buckingham Palace announced today at the publication of its annual report of Royal finances.

The Royal Public Finances annual report, which includes details of public expenditure on property and travel, states that Head of State expenditure for 2005-06 at £37.4 million is 4.2% higher than in the previous year. Over the past five years it has decreased in real terms by 2.5%.

Alan Reid, Keeper of the Privy Purse, said:

"The annual cost per person in the Country, in funding the Head of State, amounts to 62 pence. This is the annual cost, not the daily, weekly or monthly cost. We are pleased that the total cost of the Monarchy is lower in real terms than it was in 2001.

"The reduction 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.

"In the current year there was a real increase of 1.4%, which mainly arises from long-haul overseas visits, undertaken at the request of the Foreign and Commonwealth Office," he added.

Other increases have arisen because of increased security vetting resulting from media attempting to gain entrance to Royal residences by deception, and Freedom of Information enquiries.

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 2008-09, and will have remained at that level for ten years.

FINANCIAL REPORTS 2005-06
Download a two-page annual summary of expenditure 2005-06 (pdf, 165kB)

The combined report can be downloaded in four parts in pdf format:
Part I: Introduction to Head of State expenditure 2005-06 (pdf, 400kB)
Part II: Civil List expenditure 2005(pdf, 1.6MB)
Part III: Property Services Grant-in-Aid 2005-06 (pdf, 1.95MB)
Part IV: Royal Travel Grant-in-Aid 2005-06(pdf, 1.85MB)

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's gross receipts in respect of the Crown Estate were £185 million in 2004-05.

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.