Queen must be a tougher landlady

Press, 10 January 1984, Page 15

Queen must be a tougher landlady

The biggest — and saddest — upheaval in the Royal finances for years is scheduled for the next few months. The Queen, haunted by the prospect of sinking even deeper “into the red,” has reluctantly decided that she can no longer afford to be “financial fairy godmother” — her words — 'to family and friends.

As Prime Minister Margaret Thatcher starts this month the biggest and most searching review of Royal finances' for 10 years, the Queen apparently feels that the peppercorn rents of hundreds of royal properties will have to increase.

Even th? interest-free loans made to relatives, including Princess Anne, will have to be made “more financially realistic.” Grace-and-favour homes, given to friends and former Royal servants, have always been virtually rent-free. Now, according to Royal advisers, the Queen simply cannot afford such generosity any more.

The massive financial shake-up is certain to spark off a major political row, and add to the concern the Royals already feel about their budget. An air of austerity has hung over the Queen’s household for several years and, privately, the Royal Family believe they are stretching their resources to the limit.

They are soon due to receive a total of £4,515,600 from government funds towards their running costs, but some members of Parliament think the figure is too high. Labour M.P. and chief Royal critic, Willie Hamilton, has described the Civil List as “the most insensitive and brazen pay claim made in the last 200 years.” The Queen, however, is understood to feel that Royal costs have

already been cut to the bone. For years she has exercised stringent economies, especially in her private life. Even as children, Prince Charles and Princess Anne were made sharply aware of her philosophy. Worn-out clothes were patched, and school uniform hems lengthened to give them extra life. Teatime sandwiches had to be eaten to the last crust before embarking on the cakes. The Queen and Prince Philip saw it as' essential training for their children’s future, not only in their personal lives, but for

juggling Royal economies later. On one occasion, the young Charles lost a dog lead on the estate at Sandringham, and was immediately sent back to find it. “Dog leads,” said his mother, “cost money. 1 ’ The Queen, who is naturally thrifty, did her shopping this Christmas by studying price-lists in mail-order catalogues sent by department stores. To ensure that every gift is used, she keeps a personal card index with all the current measurements of the Royal Family. She is said to be particularly impatient with those who claim that increased Royal allowances are little more than a pay rise. The Queen, in fact, recently gave more than £300,000 back to the Treasury towards her upkeep. Royal finances come from three sources: the Queen’s personal fortune — she is said to be the world’s wealthiest woman; the Civil List, which covers official outgoings; and the Privy Purse, mainly a £500,000-a-year income from the Duchy of Lancaster. The Queen, said to be tired of rows over her finances, would like to. have the Civil List index-linked. This is one possibility under scrutiny by the Royal Trustees, headed by the Prime Minister, in their 10yearly review. Mrs Thatcher, the Chancellor of the Exchequer, Nigel Lawson, and Peter Miles, Keeper of the Privy Purse, now face the formidable task of wrestling with the rising cost of Royal spending. The Queen, meanwhile, goes about her household business with her usual frugality. The Royal mail goes second class, envelopes are

By

GILLIAN FRANKS

recycled, and staff wasting heat and light run the risk of a Royal reprimand. Admittedly, the Royal corgis show little signs of losing weight, but the Queen’s beloved horses are experiencing economies. Shredded newspaper instead of costly straw is now used in the Royal stables. In reality, however, little can be done to trim the enormous cost of running the Royal residences. Staff wages eat up £2,500,000 a year, and the Royal cars alone cost £ 55,000 to run.

The Royal Family’s favourite hideaways — Balmoral and Sandringham — cost £40,000 in running expenses, but there is no question of giving them up. Both houses are regarded as family homes.

Sandringham, especially, contributes towards its own upkeep. Fifty acres of blackcurrants are supplied to a fruit drinks firm in a profitable commercial venture. Other enterprises have included the sale of mushrooms grown on a large scale in the grounds of Windsor Castle.

The Queen is an unadventurous eater and, even at banquets, visiting foreigners have been surprised at the plainness of the fare.

Yet, despite her obvious economies, the Queen is aware that this month’s searching examination of her finances — possibly the last of her reign — could be a turning point. “If a substantial injection of cash is not available,” says one adviser close to the Royal Family, “we could have seen the last of the present Royal way of life — unless family members are prepared to spend more of their own money.”

Features International

WHERE THE ROYAL MONEY GOES — Here are the current royal expenses £ Wages 2,523,000 Food .. 255,000 Garden parties .. 140,000 Horses .. 85,000 Household goods .. 75,000 Cellars .. 70,000 Cars .. .. 55,000 Laundry .. 45,000 Flowers .. 40,000 Sandringham and Balmoral expenses .. 40,000 Gratuities .. 30,000 Travel and presents .. 30,000 Garden costs .. 25,000 Sundries .. 197,000 TOTAL: £3,610,000