UK: Row as parasitical royals escape cuts to public spending

THE British royal family is to be exempt from any cuts in public spending next year when the funding of the civil list – the money provided by the state to cover the family's official expenses – is settled for the next 10 years.

Although political parties in Britain are vying to demonstrate a willingness to wield the axe on public spending, MPs will be powerless to reduce the £7.9million ($14.6million) a year paid to the royals because of an obscure deal struck between Buckingham Palace and the Treasury in 1972 when the legislation governing royal finances was drawn up.

Palace officials made clear earlier this year that they were seeking a rise in the annual civil list payment to cover "increased costs", despite having a $38million surplus in reserve in the civil list account.

A Treasury order settling the annual civil list until 2020 must be laid before Parliament by July to come into effect from January 2011.

But with Prime Minister Gordon Brown and Conservative Party leader David Cameron acknowledging the need for public spending cuts, any bid for a royal rise looks politically fraught. Earlier this month Mr Cameron said cuts "had to be shared fairly, including by the rich and powerful". The palace claimed that without an increase there would be a $74million backlog of repairs and improvements by 2019.

Unique to the public sector, royal finances are negotiated and debated by MPs only once every 10 years. Despite protests from some MPs that the royal family should hand back some of the surplus, Parliament cannot reduce the annual payment. The deal, under the 1972 Civil List Act, means MPs can vote only to increase it.

Liberal Democrat MP Norman Baker said: "The royal family should not be feather-bedded in this way. I am talking about the taxpayer paying for Prince Andrew's flights to take part in golf matches."

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UK: Row as parasitical royals escape cuts to public spending

UK: Row as parasitical royals escape cuts to public spending

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