Palace £35m short – but will not let public foot the bill

‘Continuity and reassurance’

BUCKINGHAM Palace has admitted it faces a £35million funding shortfall due to Covid-19 – but says it will not ask for extra public money.

Senior Royal aides said that the household will have to tighten its belt, which could lead to job losses.

Last year the Queen, who still conducted 296 official engagements despite turning 94 in April, was given £82.4million in taxpayer funding – known as the Sovereign Grant.

The Palace says that this is equivalent to £1.23 for every person in the UK.

The figure is made up of a core grant of £49.4million which is used to fund official travel, property maintenance and the operating costs of her household in her role as head of state.

An additional £33million was given as part of a major £365million, ten-year reservicing of crumbling Buckingham Palace, which was agreed after aides successfully argued the building was on its last legs.

But in the coming years Buckingham Palace is facing tough times, including a £ 20million shortfall in funding for the reservicing programme.

It is also looking at a loss of £5million a year in funding from the Royal Collection Trust for the next three years due to the palace being closed to visitors and the continuing downturn in tourism.

The Queen’s official Keeper of the Privy Purse, Sir Michael Stevens, said: ‘In responding to both these financial challenges we have no intention of asking for extra funding and will look to manage the impact through our own efforts and efficiencies.’ He did not rule out job losses among the 488 members of staff.

A pay freeze for royal staff was implemented in April and there is also a halt on recruitment, with only ‘business-critical’ posts being filled.

Members of the Royal Family conducted almost 3,200 official engagements last year, both in the UK and overseas.

More than 139,000 guests were welcomed at royal residences across the country, among them Donald Trump, with £69.4million going on official expenditure.

Sir Michael said although the virus had changed the format of events this year, with even the Queen now carrying out some engagements via video call, she and her family still offered ‘cont i n u i t y, reassurance and recognition’.

He added: ‘Her Majesty’s programme, supported by her family, will continue to develop meaningful ways to lead the nation through this time.’