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Buckingham Palace defends Queen's funding after 5% rise Kensington Palace revamp for Duke and Duchess of Cambridge to cost £1m
(about 1 hour later)
Buckingham Palace has launched a robust defence of the Queen's funding after it emerged that under the government's new system for financing the monarchy she will receive a multimillion-pound increase over the next two years. The public cost of refurbishing the Kensington Palace apartment that will be the new home of the Duke and Duchess of Cambridge, will be £1m, the Queen's accounts reveal.
Once home to Princess Margaret, until she died in 2002, apartment IA – a 21-room abode over four storeys – has since been used as office and storage space. About £600,000 is going on removing asbestos; a further £400,000 has been spent on repairing and renewing the roof.
The apartment has recently been used by Historic Royal Palaces, a charity which looks after a number of royal residences.
Kensington Palace, or "the aunt heap", as the Duke of Windsor referred to it in a nod to its reputation as a home for supposedly "hard-up" royal relations, became a palace when William of Orange bought it in 1689, and was improved and extended by Sir Christopher Wren.
At one stage Margaret and her husband, Lord Snowdon, jazzed it up with a pink, turquoise and orange scheme. It has since been gutted and is being completely refitted now. Its 21 rooms include a drawing room, staff quarters and nursery.
On Thursday Buckingham Palace launched a robust defence of the Queen's funding after it emerged that through the government's new system for financing the monarchy she is to receive a multimillion-pound increase over the next two years.
Under the sovereign grant, calculated as 15% of the profits of the crown estate, the Queen will receive £37.89m from the state next year, a 5% increase on this year's grant of £36.1m and more than £5m more than her £32.3m expenditure in 2011/12.Under the sovereign grant, calculated as 15% of the profits of the crown estate, the Queen will receive £37.89m from the state next year, a 5% increase on this year's grant of £36.1m and more than £5m more than her £32.3m expenditure in 2011/12.
A day earlier George Osborne's comprehensive spending review outlined cuts of £11.5bn and included new restrictions on welfare. A day earlier the spending review presented by George Osborne, the chancellor, outlined cuts of £11.5bn and included new limits on state welfare.
A senior royal aide denied that the palace felt uncomfortable with the raise and said it would be used to tackle a massive backlog of building repairs that would take 10 years to clear. A royal aide said the palace did not feel uncomfortable with the raise and said the funds would be used to tackle a massive backlog of building repairs that would take 10 years to clear.
But he admitted the timing was unfortunate. "If there is a day's discomfort [because of George Osborne's statement] we just have to live with it," he said. "We can't manage the timing." But the aide said he knew it could be described as unfortunate timing, and lead to unfavourable coverage. He added: "If there is a day's discomfort [arising from Osborne's statement] we just have to live with it. We can't manage the timing."
Introduced in April last year, the sovereign's grant is a single payment replacing the civil list and grant-in-aid for building maintenance and travel costs, and is designed to make the monarchy more self-sufficient. The amount given to the Queen is based on funds two years in arrears. Introduced in April last year, the sovereign grant is a single payment replacing the civil list and grant-in-aid for building maintenance and travel costs. It is designed to make the monarchy more self-sufficient. The amount given to the Queen is based on funds two years in arrears.
Profits from the crown estate, which is one of the largest property owners in Britain, rose by 5.2% to £252.6m. Most of the profits go to the Treasury.Profits from the crown estate, which is one of the largest property owners in Britain, rose by 5.2% to £252.6m. Most of the profits go to the Treasury.
The cost of the monarchy had been reduced by 80% over 20 years, said the official, with major savings including the scrapping of the royal yacht Britannia. The official said the cost of the monarchy had been reduced by 80% over 20 years, with savings including the scrapping of the royal yacht Britannia.
A total of 360 buildings are maintained by the sovereign grant, and for years the previous grant-in-aid for the royal palaces was pegged at £15m, meaning repairs were delayed. Priorities now are to renovate at least half of the lead roofs at Windsor Castle and replace the roof on the picture gallery at Buckingham Palace and that of the Royal Mausoleum at Frogmore, which has been closed to the public since 2007 for safety reasons. A total of 360 buildings are maintained by the sovereign grant, and for years the previous grant-in-aid for the royal palaces was pegged at £15m.
Buckingham Palace also requires replacement wiring and pipework, which could provide an opportunity for redecoration. The state rooms have not been redecorated at all during the Queen's 60-year reign, the aide said. Priorities now include renovating at least half of the lead roofs at Windsor Castle and replacing the roof on the picture gallery at Buckingham Palace and that of the Royal Mausoleum at Frogmore, which has been closed to the public since 2007 for safety reasons.
Sir Alan Reid, keeper of the privy purse, said that Osborne had driven "a very hard bargain" when the government introduced the sovereign grant, insisting that the palace be given £31m, which was £5m less than the previous year's sum in civil list and grant-in-aid. He said the royal household had achieved a real-terms reduction of 24% over the last five years. Buckingham Palace also requires replacement wiring and pipework, which could provide an opportunity for redecoration. The state rooms have not been redecorated during the Queen's 60-year reign, the aide said.
Controls over the grant allow the chancellor to renegotiate on a five-yearly basis the percentage of crown estate profits given to the Queen. The next renegotiation is due in 2015/16. Buckingham Palace is not permitted to build up a reserve of more than 0.5% of one year's sovereign grant. Palace accounts are open to scrutiny by the National Audit Office. Sir Alan Reid, keeper of the privy purse, said that Osborne had driven "a very hard bargain" when the government introduced the sovereign grant insisting that the palace be given £31m, which was £5m less than the previous year's sum in civil list and grant-in-aid. He said the royal household had achieved a real-terms reduction of 24% over the last five years.
Asked whether the prime minister supported the increase in the Queen's funding, a No 10 spokesman said: "There is a process that is gone through. I don't think the prime minister disagrees with that process." Controls over the grant let the chancellor renegotiate on a five-yearly basis the percentage of crown estate profits given to the Queen. The next renegotiation is due in 2015/16.
The campaign group Republic called on the Queen to hand back the raise, arguing that the deal struck by the government two years ago did not allow royal funding to go down but to rise year-on-year in line with crown estate profits. Buckingham Palace is not permitted to build up a reserve of more than 0.5% of one year's sovereign grant. Palace accounts are open to scrutiny by the National Audit Office.
Asked whether the prime minister supported the increase in the Queen's funding, a No 10 spokesman said: "I don't think the prime minister disagrees with that process."
The campaign group Republic called on the Queen to hand back the boosted funds. It pointed out that the deal struck by the government two years ago did not allow royal funding to fall but to rise year-on-year in line with crown estate profits.
"We said from the start that this was a bad deal for the taxpayers and no way to fund a public institution. Clearly we were right," said Graham Smith, Republic's chief executive. "As everyone else is seeing cuts to services and jobs, it is unbelievable that our head of state will sit silently by as she is handed millions more in public money.""We said from the start that this was a bad deal for the taxpayers and no way to fund a public institution. Clearly we were right," said Graham Smith, Republic's chief executive. "As everyone else is seeing cuts to services and jobs, it is unbelievable that our head of state will sit silently by as she is handed millions more in public money."
He added: "The crown estate is not – and never has been – the personal property of the royals. The Windsors have no more right to its revenue than I do." He added: "The crown estate is not, and never has been, the personal property of the royals. The Windsors have no more right to its revenue than I do."
The Queen's accounts show that the cost of the royal family to the taxpayer – excluding security and protection costs, which are not disclosed – rose by £900,000 to £33.3m during her diamond jubilee year. The Queen's accounts show that the cost of the royal family to the taxpayer – excluding security and protection costs, which are not disclosed – rose by £900,000 to £33.3m in her diamond jubilee year.
The cost of "cleaning, laundry and other" was £700,000, up from £500,000 the previous year, and her gas bill rose £300,000 to £1m. Salary costs went up from £17.5m to £18.3m after staff – who had been on a pay freeze for three years – were given a "little" rise to boost morale in the diamond jubilee year. About 20% of the staff belong to a union. The cost of the Queen's "cleaning, laundry and other" was £700,000, up from £500,000 the previous year, and the gas bill rose £300,000 to £1m. Salary costs rose from £17.5m to £18.3m after staff, on a three-year pay, got a "little" rise to boost morale in the diamond jubilee year. About 20% only of the staff belong to a union.
The cost of upgrading the IT system was £900,000, as the palace had been using Microsoft Office 2003. "You probably thought we were all on 1497, being a traditional organisation," joked one aide.
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