ROYAL TRAVEL GRANT-IN-AID

Each year the Royal Family carries out about 2,900 official engagements in the United Kingdom and overseas.

These engagements involve many journeys that must be undertaken in ways which meet presentational, efficiency and security requirements.

Up to 31 March 1997 the costs of official Royal travel by air and rail were met by the Ministry of Defence, the Department of Transport and the Foreign and Commonwealth Office.

At the Royal Household’s suggestion, responsibility for the expenditure was transferred to the Household with effect from 1 April 1997. The Royal Household now receives annual funding to meet the costs of official Royal travel, in the form of a Royal Travel Grant-in-aid from Parliament, through the Department for Transport (DfT).

The Royal Household’s management of the Grant-in-aid is subject to supervision by the DfT. The Royal Household annually submits a rolling five-year plan to the Department for approval, as well as detailed quarterly reports and a detailed budget at the start of each financial year.

In addition to internal audits, the income and expenditure Account and balance sheet are audited by KPMG LLP, the Grant-in-aid’s external auditors. To improve accountability and transparency, an annual report is published which includes the income and expenditure account.

The majority of Royal travel expenditure pays for The Queen’s helicopter and chartered or scheduled fixed-wing aircraft provided by civil operators, used particularly for major overseas State visits.

Fixed-wing Royal Air Force aircraft from 32 (The Royal) Squadron and the Royal Train are also used.

Official travel by car for The Queen is paid for from the Civil List and for The Duke of Edinburgh from his Parliamentary Annuity. Official travel by car for other members of the Royal Family is paid for from private sources.

The Grant-in-aid for the year to 31 March 2006 was £5.9 million (£5.7 million in 2004-05). Actual expenditure during the year was £5.5 million (£5.0m in 2004-05). This represents a reduction of 72% in absolute terms and 76% in real terms during the nine years since the Royal Household assumed responsibility for Royal travel expenditure.

It is not envisaged that Royal travel expenditure will reduce further. Future variations in costs will largely be affected by the number of large overseas visits which are determined by the Foreign and Commonwealth Office.

The largest tours during the year 2005-06 were those undertaken by The Queen and The Duke of Edinburgh to Australia and Singapore, and by The Prince of Wales and The Duchess of Cornwall to the United States of America, and to Egypt, the Middle East and India.

The Grant-in-Aid for the current year has been increased to £6.0m. This represents a reduction in absolute terms of 69% from the initial Grant-in-aid in 1997-98.