Photograph by NASA/Bill Ingalls
A Commons committee has called on the royal household to reduce costs and increase income with the Queen’s cash reserves found to be at a historic low of £1 million.
A report by the public accounts committee recommended better planning and financial management to rebuild the cash reserves, which have fallen from £35 million in 2001 to £1 million today, in order to cover any unforeseen demands of the Queen’s programme.
Margaret Hodge, the committee chair, also criticised the Treasury, saying:
We feel that The Queen has not been served well by the Household and by the Treasury, which is responsible for effective scrutiny of the Household’s financial planning and management. We believe that The Treasury has a duty to be actively involved in reviewing the Household’s financial planning and management – and it has failed to do so.
She continued to recommend cost cutting measures to reduce expenditure alongside increasing income:
There is scope for the Household to generate more income and reduce its costs further. It’s certainly good news that the Royal Household has increased its income in 2012-2013 to £11.6 million. However, we think it could do more. Since 2007-08, the Household has cut its net costs by 16% in real terms, but 11% of that was achieved by increasing income, and just 5% by reducing expenditure. With better commercial expertise in place, we think there is room to do more with less, reducing costs further and supporting The Queen’s programme more effectively.
