Royal finances laid bare

The Royal Family has made significant savings

The amount spent by the Royal Family has dropped by £3m in the last financial year, according to the first annual breakdown of the cost of the monarchy.

Most of the savings have been made by cutting the amount spent on royal travel, from £8.6m in 1999-00 to £5.4m last year.

With Crown Estate revenue paid to the Treasury, royal insiders say the Queen is now actually contributing more than is spent on the Royal Family.

Royal spending

Council tax - £16,000

Restoring silk tapestries - £29,000

100th birthday cards - £15,000

Telephone bills - £660,000

Water and sewerage - £133,000

Throne room decor - £157,000

The report on royal finances usually comes out every 10 years, but is now being published annually to make the cost of monarchy more transparent and understandable.

Royal spending now stands at £35m, a fall of 58% since 1991-92, when the bill was £83m in today's money.

In comparison, the British Library in London cost taxpayers £85m, the Welsh fourth TV channel cost £77m and the Particle Physics and Research Council in Swindon cost £190m.

Royal reporters were treated to a tour of the basement of Buckingham Palace for a glimpse of the new cost-cutting regime in action.

They were shown a new combined heat and power unit, which saves £200,000 per year in heat and electricity costs.

The report shows that the money given to the monarchy is spent largely on staff costs, upkeep of the palaces and travelling expenses.

Queen 'in credit'

It reveals that while spending on travel has been cut, the cost of some journeys still remain high.

One overnight journey by the Queen and Duke of Edinburgh on the Royal Train from London Euston to Bodmin to visit the Royal Cornwall Show, among other engagements, cost £36,474.

But it also shows quirkier expenses, such as the £15,000 the Royal household spends on 100th birthday congratulation cards.

Annual revenue from the Crown Estate has increased by £42m in real terms since 1991-92, to £133m last year.

The Queen surrenders this money to the Exchequer, in return for Parliament agreeing to fund the Civil List and other head of state expenditure.

Personal funds

Only the Queen, Queen Mother and Duke of Edinburgh are paid directly from the Civil List. Payments to other Royal Family members are reimbursed by the Queen from her personal funds.

The Keeper of the Privy Purse, Sir Michael Peat, said the monarchy effectively costs taxpayers nothing, and is even in credit.

"People are inclined to talk about how much the Queen costs the taxpayer. In fact, the Queen doesn't cost the taxpayer anything," he said.

"The £48m reduction in Head of State expenditure together with the £42m increase in Crown Estate revenue mean that the net annual contribution made by the Queen to the Exchequer has increased by £90m during the last nine years.

"Further significant progress has been made in reducing Head of State expenditure and in achieving the highest standards of disclosure and transparency."