BRITISH MONARCHY AND ITS INFLUENCE UPON GOVERNMENTAL INSTITUTIONS

the 1884 Reform Act. It was during Victoria's reign that the modern idea of

the constitutional monarch, whose role was to remain above political

parties, began to evolve. But Victoria herself was not always non-partisan

and she took the opportunity to give her opinions - sometimes very

forcefully - in private.

After the Second Reform Act of 1867, and the growth of the two-party

(Liberal and Conservative) system, the Queen's room for manoeuvre

decreased. Her freedom to choose which individual should occupy the

premiership was increasingly restricted. In 1880, she tried,

unsuccessfully, to stop William Gladstone - whom she disliked as much as

she admired Disraeli and whose policies she distrusted - from becoming

Prime Minister. She much preferred the Marquess of Hartington, another

statesman from the Liberal party which had just won the general election.

She did not get her way. She was a very strong supporter of Empire, which

brought her closer both to Disraeli and to the Marquess of Salisbury, her

last Prime Minister. Although conservative in some respects - like many at

the time she opposed giving women the vote - on social issues, she tended

to favour measures to improve the lot of the poor, such as the Royal

Commission on housing. She also supported many charities involved in

education, hospitals and other areas.

Victoria and her family travelled and were seen on an unprecedented

scale, thanks to transport improvements and other technical changes such as

the spread of newspapers and the invention of photography. Victoria was the

first reigning monarch to use trains - she made her first train journey in

1842.

In her later years, she almost became the symbol of the British Empire.

Both the Golden (1887) and the Diamond (1897) Jubilees, held to celebrate

the 50th and 60th anniversaries of the queen's accession, were marked with

great displays and public ceremonies. On both occasions, Colonial

Conferences attended by the Prime Ministers of the self-governing colonies

were held.

Despite her advanced age, Victoria continued her duties to the end -

including an official visit to Dublin in 1900. The Boer War in South Africa

overshadowed the end of her reign. As in the Crimean War nearly half a

century earlier, Victoria reviewed her troops and visited hospitals; she

remained undaunted by British reverses during the campaign: 'We are not

interested in the possibilities of defeat; they do not exist.'

Victoria died at Osborne House on the Isle of Wight, on 22 January 1901

after a reign which lasted almost 64 years, the longest in British history.

She was buried at Windsor beside Prince Albert, in the Frogmore Royal

Mausoleum, which she had built for their final resting place. Above the

Mausoleum door are inscribed Victoria's words: 'farewell best beloved, here

at last I shall rest with thee, with thee in Christ I shall rise again'.

SAXE-COBURG-GOTHA

The name Saxe-Coburg-Gotha came to the British Royal Family in 1840 with

the marriage of Queen Victoria to Prince Albert, son of Ernst, Duke of

Saxe-Coburg & Gotha. Queen Victoria herself remained a member of the House

of Hanover.

The only British monarch of the House of Saxe-Coburg-Gotha was King

Edward VII, who reigned for nine years at the beginning of the modern age

in the early years of the 20th century. King George V replaced the German-

sounding title with that of Windsor during the First World War. The name

Saxe-Coburg-Gotha survived in other European monarchies, including the

current Belgian Royal Family and the former monarchies of Portugal and

Bulgaria.

SAXE-COBURG AND GOTHA

1837 - 1917

THE WINDSORS

1917 – PRESENT DAY

VICTORIA = m. Prince Albert of Saxe-Coburg &

Gotha

(1837-1910) (Prince Consort)

EDWARD VII = m. Princess Alexandra, dau.

of CHRISTIAN IX, King of

(1910 – 1936) Denmark

DUKE OF WINDSOR

GEORGE VI = m. Lady Elizabeth

EDWARD VIII

1936-1952 Bowes-Lyon, dau. of Earl of

(abdicated 1936)

Strathmore and

Kinghorne

(Queen

Elizabeth

The

Queen Mother)

QUEEN ELIZABETH II

(1952 – present day)

EDWARD VII (1901-10)

Edward VII, born November 9, 1841, was the eldest son of Queen Victoria.

He took the family name of his father, Prince Consort Albert, hence the

change in lineage, although he was still Hanoverian on his mother's side.

He married Princess Alexandra of Denmark in 1863, who bore him three sons

and three daughters. Edward died on May 6, 1910, after a series of heart

attacks.

Victoria, true to the Hanoverian name, saw the worst in Edward. She and

Albert imposed a strict regime upon Edward, who proved resistant and

resentful throughout his youth. His marriage at age twenty-two to Alexandra

afforded him some relief from his mother's domination, but even after

Albert's death in 1863, Victoria consistently denied her son any official

governmental role. Edward rebelled by completely indulging himself in

women, food, drink, gambling, sport and travel. Alexandra turned a blind

eye to his extramarital activities, which continued well into his sixties

and found him implicated in several divorce cases.

Edward succeeded the throne upon Victoria's death; despite his risquй

reputation, Edward threw himself into his role of king with vitality. His

extensive European travels gave him a solid foundation as an ambassador in

foreign relations. Quite a few of the royal houses of Europe were his

relatives, allowing him to actively assist in foreign policy negotiations.

He also maintained an active social life, and his penchant for flamboyant

accouterments set trends among the fashionable. Victoria's fears proved

wrong: Edward's forays into foreign policy had direct bearing on the

alliances between Great Britain and both France and Russia, and aside from

his sexual indiscretions, his manner and style endeared him to the English

populace.

Social legislation was the focus of Parliament during Edward's reign. The

1902 Education Act provided subsidized secondary education, and the Liberal

government passed a series of acts benefiting children after 1906; old age

pensions were established in 1908. The 1909 Labour Exchanges Act laid the

groundwork for national health insurance, which led to a constitutional

crisis over the means of budgeting such social legislation. The budget set

forth by David Lloyd-George proposed major tax increases on wealthy

landowners and was defeated in Parliament. Prime Minister Asquith appealed

to Edward to create several new peerages to swing the vote, but Edward

steadfastly refused. Edward died amidst the budgetary crisis at age sixty-

eight, which was resolved the following year by the Liberal government's

passage of the act.

Despite Edward's colorful personal life and Victoria's perceptions of him

as profligate, Edward ruled peacefully (aside from the Boer War of 1899-

1902) and successfully during his short reign, which is remarkable

considering the shifts in European power that occurred in the first decade

of the twentieth century.

THE HOUSE OF WINDSOR

The House of Windsor came into being in 1917, when the name was adopted

as the British Royal Family's official name by a proclamation of King

George V, replacing the historic name of Saxe-Coburg-Gotha. It remains the

family name of the current Royal Family.

During the twentieth century, kings and queens of the United Kingdom have

fulfilled the varied duties of constitutional monarchy. One of their most

important roles was national figureheads lifting public morale during the

devastating world wars of 1914-18 and 1939-45.

The period saw the modernization of the monarchy in tandem with the many

social changes which have taken place over the past 80 years. One such

modernization has been the use of mass communication technologies to make

the Royal Family accessible to a broader public the world over. George V

adopted the new relatively new medium of radio to broadcast across the

Empire at Christmas; the Coronation ceremony was broadcast on television

for the first time in 1953, at The Queen's insistence; and the World Wide

Web has been used for the past five years to provide a global audience with

information about the Royal Family. During this period British monarchs

have also played a vital part in promoting international relations,

retaining ties with former colonies in their role as Head of the

Commonwealth.

GEORGE V (1910-36)

George V was born June 3, 1865, the second son of Edward VII and

Alexandra. His early education was somewhat insignificant as compared to

that of the heir apparent, his older brother Albert. George chose the

career of professional naval officer and served competently until Albert

died in 1892, upon which George assumed the role of the heir apparent. He

married Mary of Teck (affectionately called May) in 1893, who bore him four

sons and one daughter. He died the year after his silver jubilee after a

series of debilitating attacks of bronchitis, on January 20, 1936.

George ascended the throne in the midst of a constitutional crisis: the

budget controversy of 1910. Tories in the House of Lords were at odds with

Liberals in the Commons pushing for social reforms. When George agreed to

create enough Liberal peerages to pass the measure the Lords capitulated

and gave up the power of absolute veto, resolving the problem officially

with passage of the Parliament Bill in 1911. The first World War broke out

in 1914, during which George and May made several visits to the front; on

one such visit, George's horse rolled on top of him, breaking his pelvis -

George remained in pain for the rest of his life from the injury. The

worldwide depression of 1929-1931 deeply affected England, prompting the

king to persuade the heads of the three political parties (Labour,

Conservative and Liberal) to unite into a coalition government. By the end

of the 1920's, George and the Windsors were but one of few royal families

who retained their status in Europe.

The relationship between England and the rest of the Empire underwent

several changes. An independent Irish Parliament was established in 1918

after the Sinn Fein uprising in 1916, and the Government of Ireland Act

(1920) divided Ireland along religious lines. Canada, Australia, New

Zealand and South Africa demanded the right of self-governance after the

war, resulting in the creation of the British Commonwealth of Nations by

the Statute of Westminster in 1931. India was accorded some degree of self-

determination with the Government of India Act in 1935.

The nature of the monarchy evolved through the influence of George. In

contrast to his grandmother and father - Victoria's ambition to exert

political influence in the tradition of Elizabeth I and Edward VII's

aspirations to manipulate the destiny of nations - George's royal

perspective was considerably more humble. He strove to embody those

qualities, which the nation saw as their greatest strengths: diligence,

dignity and duty. The monarchy transformed from an institution of

constitutional legality to the bulwark of traditional values and customs

(particularly those concerning the family). Robert Lacey describes George

as such: ". . . as his official biographer felt compelled to admit, King

George V was distinguished 'by no exercise of social gifts, by no personal

magnetism, by no intellectual powers. He was neither a wit nor a brilliant

raconteur, neither well-read nor well-educated, and he made no great

contribution to enlightened social converse. He lacked intellectual

curiosity and only late in life acquired some measure of artistic taste.'

He was, in other words, exactly like most of his subjects. He discovered a

new job for modern kings and queens to do - representation."

EDWARD VIII ( JANUARY-DECEMBER 1936)

As Prince of Wales, Edward VIII (reigned January-December 1936) had

successfully carried out a number of regional visits (including areas hit

by economic depression) and other official engagements. These visits and

his official tours overseas, together with his good war record and genuine

care for the underprivileged, had made him popular.

The first monarch to be a qualified pilot, Edward created The King's Flight

(now known as 32 (The Royal) Squadron) in 1936 to provide air transport for

the Royal family's official duties.

In 1930, the Prince, who had already had a number of affairs, had met and

fallen in love with a married American woman, Mrs Wallis Simpson. Concern

about Edward's private life grew in the Cabinet, opposition parties and the

Dominions, when Mrs Simpson obtained a divorce in 1936 and it was clear

that Edward was determined to marry her.

Eventually Edward realised he had to choose between the Crown and Mrs

Simpson who, as a twice-divorced woman, would not have been acceptable as

Queen. On 10 December 1936, Edward VIII executed an Instrument of

Abdication which was given legal effect the following day, when Edward gave

Royal Assent to His Majesty's Declaration of Abdication Act, by which

Edward VIII and any children he might have were excluded from succession to

the throne. In 1937, Edward was created Duke of Windsor and married Wallis

Simpson.

During the Second World War, the Duke of Windsor escaped from Paris,

where he was living at the time of the fall of France, to Lisbon in 1940.

The Duke of Windsor was then appointed Governor of the Bahamas, a position

he held until 1945. He lived abroad until the end of his life, dying in

1972 in Paris (he is buried at Windsor). Edward was never crowned; his

reign lasted 325 days. His brother Albert became King, using his last name

George.

GEORGE VI (1936-52)

George VI, born December 14, 1895, was the second son of George V and

Mary of Teck. He was an unassuming, shy boy who greatly admired his brother

Edward, Prince of Wales. From childhood to the age of thirty, George

suffered with a bad stammer in his speech, which exacerbated his shyness;

Lionel Logue, an Australian speech therapist, was instrumental in helping

George overcome the speech defect. George married Lady Elizabeth Bowes-Lyon

in 1923, who bore him two daughters, Elizabeth and Margaret. He died from

cancer on February 6, 1952.

Due to the controversy surrounding the abdication of Edward VIII, popular

opinion of the throne was at its lowest point since the latter half of

Victoria's reign. The abdication, however, was soon overshadowed by

continental developments, as Europe inched closer to yet another World War.

After several years of pursuing "appeasement" policies with Germany, Great

Britain (and France) declared war on Germany on September 3, 1939. George,

following in his father's footsteps, visited troops, munitions factories,

supply docks and bomb-damaged areas to support the war effort. As the

Nazi's bombed London, the royal family remained at Buckingham Palace;

George went so far as to practice firing his revolver, vowing that he would

defend Buckingham to the death. Fortunately, such defense was never

necessary. The actions of the King and Queen during the war years greatly

added to the prestige of the monarchy.

George predicted the hardships following the end of the war as early as

1941. From 1945-50, Great Britain underwent marked transitions. The Bank of

England, as well as most facets of industry, transportation, energy

production and health care, were brought to some degree of public

ownership. The birth pangs of the Welfare State and the change from Empire

to multiracial Commonwealth troubled the high-strung king. The political

turmoil and economic hardships of the post-war years left the king

physically and emotionally drained by the time of his death.

In the context of royal history, George VI was one of only five monarchs

who succeeded the throne in the lifetime of his predecessor; Henry IV,

Edward IV, Richard III, and William III were the other four. George, upon

his ascension, wrote to Prime Minister Stanley Baldwin concerning the state

of the monarchy: "I am new to the job but I hope that time will be allowed

to me to make amends for what has happened." His brother Edward continued

to advise George on matters of the day, but such advice was a hindrance, as

it was contradictory to policies pursued by George's ministers. The "slim,

quiet man with tired eyes" (as described by Logue) had a troubled reign,

but he did much to leave the monarchy in better condition than he found it.

ELIZABETH II (1952-PRESENT)

Elizabeth II, born April 21, 1926, is the eldest daughter of George VI

and Elizabeth Bowes-Lyon. She married Philip Mountbatten, a distant cousin,

in 1947; the pair have four children: Charles, Prince of Wales, Anne,

Andrew and Edward. She has reigned for forty-six years, and appears capable

of remaining on the throne for quite some time.

Monarchy, as an institution in Europe, all but disappeared during the two

World Wars: a scant ten monarchs remain today, seven of which have familial

ties to England. Elizabeth is, by far, the best known of these, and is the

most widely traveled Head of State in the world. Her ascension was

accompanied by constitutional innovation; each independent, self-governing

country proclaimed Elizabeth, Queen of their individual state. She approves

of the transformation from Empire to Commonwealth, describing the change as

a "beneficial and civilized metamorphosis." The indivisibility of the crown

was formally abandoned by statute in 1953, and "Head of the Commonwealth"

was added to the long list of royal titles which she possesses.

Elizabeth's travels have won the adulation of her subjects; she is

greeted with honest enthusiasm and warm regard with each visit abroad. She

has been the master link in a chain of unity forged among the various

countries within the Commonwealth. Hence, the monarchy, as well as the

Empire, has evolved - what once was the image of absolute power is now a

symbol of fraternity.

Elizabeth has managed to maintain a division between her public and

private life. She is the first monarch to send her children to boarding

schools in order to remove them from the ever-probing media. She has a

strong sense of duty and diligence and dispatches her queenly business with

great candor, efficiency and dignity. Her knowledge of current situations

and trends is uncannily up to date, often to the embarrassment of her Prime

Ministers. Harold Wilson, upon his retirement, remarked, "I shall certainly

advise my successor to do his homework before his audience." Churchill, who

had served four monarchs, was impressed and delighted by her knowledge and

wit. She possesses a sense of humor rarely exhibited in public where a

dignified presence is her goal.

Elizabeth, like her father before her, raised the character of the

monarchy through her actions. Unfortunately, the actions of her children

have tarnished the royal name. The much publicized divorces of Charles from

Diana and Andrew from Sarah Ferguson have been followed by further

indiscretions by the princes, causing a heavily-taxed populace to rethink

the necessity of a monarchy. Perhaps Elizabeth will not reign as long as

Victoria, but her exceptionally long reign has provided a bright spot in

the life of her country.

THE MONARCHY TODAY

THE QUEEN'S ROLE

The Queen is the United Kingdom's Head of State. As well as carrying out

significant constitutional functions, The Queen also acts as a focus for

national unity, presiding at ceremonial occasions, visiting local

communities and representing Britain around the world. The Queen is also

Head of the Commonwealth. During her reign she has visited all the

Commonwealth countries, going on 'walkabouts' to gain direct contact with

people from all walks of life throughout the world.

Behind and in front of the cameras, The Queen's work goes on. No two days

in The Queen's working life are ever the same.

QUEEN'S ROLE IN THE MODERN STATE

Until the end of the 17th century, British monarchs were executive

monarchs - that is, they had the right to make and pass legislation. Since

the beginning of the eighteenth century, the monarch has become a

constitutional monarch, which means that he or she is bound by rules and

conventions and remains politically impartial.

On almost all matters he or she acts on the advice of ministers. While

acting constitutionally, the Sovereign retains an important political role

as Head of State, formally appointing prime ministers, approving certain

legislation and bestowing honours.

The Queen also has important roles to play in other organisations,

including the Armed Forces and the Church of England.

QUEEN'S ROLE IN THE MODERN STATE

Until the end of the 17th century, British monarchs were executive

monarchs - that is, they had the right to make and pass legislation. Since

the beginning of the eighteenth century, the monarch has become a

constitutional monarch, which means that he or she is bound by rules and

conventions and remains politically impartial.

On almost all matters he or she acts on the advice of ministers. While

acting constitutionally, the Sovereign retains an important political role

as Head of State, formally appointing prime ministers, approving certain

legislation and bestowing honours.

The Queen also has important roles to play in other organisations,

including the Armed Forces and the Church of England.

QUEEN AND COMMONWEALTH

The Queen is not only Queen of the United Kingdom, but Head of the

Commonwealth, a voluntary association of 54 independent countries.

Most of these countries have progressed from British rule to independent

self-government, and the Commonwealth now serves to foster international co-

operation and trade links between people all over the world.

The Queen is also Queen of a number of Commonwealth realms, including

Australia, New Zealand and Canada.

ROYAL VISITS

Visits to all kinds of places throughout the United Kingdom, Commonwealth

and overseas are an important part of the work of The Queen and members of

the Royal family. They allow members of the Royal family to meet people

from all walks of life and backgrounds, to celebrate local and national

achievements and to strengthen friendships between different countries.

Many of the visits are connected to charities and other organisations with

which members of the Royal family are associated. In other cases, royal

visits help to celebrate historic occasions in the life of a region or

nation. All visits are carefully planned to ensure that as many people as

possible have the opportunity to see or meet members of the Royal family.

THE QUEEN'S WORKING DAY

The Queen has many different duties to perform every day. Some are

familiar public duties, such as Investitures, ceremonies, receptions or

visits within the United Kingdom or abroad. Away from the cameras, however,

The Queen's work goes on. It includes reading letters from the public,

official papers and briefing notes; audiences with political ministers or

ambassadors; and meetings with her Private Secretaries to discuss her

future diary plans. No two days are ever the same and The Queen must remain

prepared throughout.

CEREMONIES AND PAGEANTRY

The colourful ceremonies and traditions associated with the British

Monarchy are rich in history and meaning and fascinating to watch. In some,

The Queen takes part in person. In others - such as Guard Mounting or Swan

Upping - the ceremony is performed in The Queen's name. Many of the

ceremonies take place on a regular basis - every year or even every day -

which means that British people and visitors to London and other parts of

the United Kingdom may have an opportunity to see some of these interesting

events take place.

THE QUEEN'S CEREMONIAL DUTIES

The Queen has many ceremonial roles. Some - such as the State Opening of

Parliament, Audiences with new ambassadors and the presentation of

decorations at Investitures - relate to The Queen's role as Head of State.

Others - such as the presentation of Maundy money and the hosting of

garden parties - are historical ceremonies in which kings and queens have

taken part for decades or even centuries.

ROYAL PAGEANTRY AND TRADITIONS

In addition to the events in which The Queen takes part, there are many

other ceremonies and traditions associated with the British Monarchy. Some

of these have military associations, involving troops from the present

Armed Forces as well as the members of the historical royal bodyguard, the

Yeomen of the Guard. Others are traditions which are less well known than

the colourful pageantry but are interesting in their own right. Some - such

as the customary broadcasts by the Sovereign on Christmas Day and

Commonwealth Day - are fairly recent in origin, but have rapidly become

familiar and popular traditions.

ROYAL SUCCESSION

When a sovereign dies, or abdicates, a successor is immediately decided

according to rules which were laid down at the end of the seventeenth

century. The coronation of a new sovereign is a ceremony of great pageantry

and celebration that has remained essentially the same for over a thousand

years. As well as explaining accession, succession and coronation, this

section looks at the titles which have been held by different members of

the Royal Family throughout history.

THE ROYAL HOUSEHOLD

Divided into five departments, the Royal Household assists The Queen in

carrying out her official duties. Members of the Royal Household carry out

the work and roles which were performed by courtiers historically. There

are 645 full-time employees, employed across a wide range of professions.

People employed within the Royal Household are recruited from the general

workforce on merit, in terms of qualifications, experience and aptitude.

Details of the latest vacancies are listed in the Recruitment pages of this

section.

The Royal Household includes The Queen's Household, plus the Households

of other members of the Royal Family who undertake public engagements. The

latter comprise members of their private offices and other people who

assist with their public duties.

ROYAL HOUSEHOLD DEPARTMENTS

Royal Household's functions are divided across five departments, under

the overall authority of the Lord Chamberlain, the senior member of The

Queen's Household. These departments developed over centuries and

originated in the functions of the Royal Court. As a result, the

departments and many job titles have ancient names - the jobs themselves,

however, are thoroughly modern!

Most of the departments are based in Buckingham Palace, although there

are also offices in St. James's Palace, Windsor Castle and the Royal Mews.

Members of the Royal Household also often travel with The Queen on overseas

visits and during The Queen's stays at Balmoral Castle and Sandringham,

since The Queen's work continues even when she is away from London.

In addition to the full-time members of the Royal Household, there are

other part-time members of The Queen's Household. These include the Great

Officers of State who take part in important Royal ceremonies, as well as

Ladies-in-waiting, who are appointed personally by The Queen and female

members of the Royal Family.

RECRUITMENT

People are employed within the Royal Household from a wide range of

sectors and professions, including catering, housekeeping, accountancy,

secretarial and administrative fields, public relations, human resources

management, art curatorship and strategic planning disciplines. The special

nature of the Royal Household means that unique career opportunities are

available.

Employment in the Royal Household offers excellent career opportunities

for those who wish to take a new direction. Positions in the Royal

Household receive good remuneration and benefits. For domestic positions,

there are often enhanced by accommodation. The Royal Household is also

committed to training and development, including NVQ and vocational

training, general management and skills-based training across a range of

disciplines - from carriage driving to an in-house diploma for footmen

which is widely recognised in its specialised field as a valued vocational

qualification.

Jobs at Buckingham Palace and in other Royal residences are usually

advertised in national, regional or specialist media in the usual way.

Details of the latest vacancies are listed in the Recruitment pages of this

section and applications can be made by downloading the standard

application form. All positions are also advertised internally to encourage

career development and to offer opportunities for promotion to existing

employees.

A number of vacancies occur on a regular basis, including positions as

housemaids, footmen and secretaries. In addition, nearly 200 Wardens are

employed each year for Buckingham Palace's Summer Opening programme.

Speculative enquiries are welcome for these posts throughout the year.

Recruitment is in all cases on merit, in terms of qualifications,

experience and aptitude. The Royal Household is committed to Equal

Opportunities.

ANNIVERSARIES

Since 1917, the Sovereign has sent congratulatory messages to those

celebrating their 100th and 105th birthday and every year thereafter, and

to those celebrating their Diamond Wedding (60th), 65th, 70th wedding

anniversaries and every year thereafter. For many people, receiving a

message from The Queen on these anniversaries is a very special moment.

For data privacy reasons, there is no automatic alert from government

records for wedding anniversaries. The Department for Work and Pensions

informs the Anniversaries Office of birthdays for recipients of UK State

pensions. However, to ensure that a message is sent for birthdays and

wedding anniversaries alike, an application needs to be made by a relative

or friend in advance of the special day.

The Queen's congratulatory messages consist of a card containing a

personalised message with a facsimile signature. The card comes in a

special envelope, which is delivered through the normal postal channels.

More information about applying for a message and interesting facts about

the tradition are contained in this section.

ROYAL FINANCES

This section provides the latest information on Head of State

expenditure, together with information about Royal financial arrangements.

It includes information about the four sources of funding of The Queen

(or officials of the Royal Household acting on her behalf). The Civil List

meets official expenditure relating to The Queen's duties as Head of State

and Head of the Commonwealth. Grants-in-Aid from Parliament provide upkeep

of the Royal Palaces and for Royal travel. The Privy Purse is traditional

income for the Sovereign's public and private use. Her Majesty's personal

income meets entirely private expenditure.

The Queen pays tax on her personal income and capital gains. The Civil

List and the Grants-in-Aid are not taxed because they cover official

expenditure. The Privy Purse is fully taxable, subject to a deduction for

official expenditure.

These pages also contain information about the financial arrangements of

other members of the Royal Family, together with information on the Royal

Philatelic Collection.

HEAD OF STATE EXPENDITURE 2000-01

Head of State expenditure is the official expenditure relating to The

Queen's duties as Head of State and Head of the Commonwealth. Head of State

expenditure is met from public funds in exchange for the surrender by The

Queen of the revenue from the Crown Estate.

Head of State expenditure for 2001-02, at Ј35.3 million, is 1.0% higher

than in the previous year (a decrease of 1.3% in real terms). The Ј350,000

increase is mainly attributable to fire precautions work at the Palace of

Holyroodhouse, offset by the fact that costs transferred from other funding

sources to the Civil List with effect from 1st April 2001 are only included

in 2001 Civil List expenditure for nine months. They will be included for a

full year in 2002 and subsequently. Costs have been transferred to the

Civil List from other funding sources in order to utilise the Civil List

reserve brought forward at 1st January 2001. Head of State expenditure has

reduced from Ј84.6 million (expressed in current pounds) in 1991-92, a

reduction of 58%.

SOURCES OF FUNDING

The four sources of funding of The Queen, or officials of the Royal

Household acting on Her Majesty's behalf, are: the Civil List, the Grants-

in-Aid for upkeep of Royal Palaces and for Royal travel, the Privy Purse

and The Queen's personal wealth and income.

FINANCIAL ARRANGEMENTS OF THE PRINCE OF WALES

The Prince of Wales does not receive any money from the State. Instead,

he receives the annual net surplus of the Duchy of Cornwall and uses it to

meet the costs of all aspects of his public and private commitments, and

those of Prince William and Prince Harry.

The Duchy's name is derived from the Earldom of Cornwall, which Edward

III elevated to a duchy in 1337. The Duchy's founding charter included the

gift of estates spread throughout England. It also stated that the Duchy

should be in the stewardship of the Heir Apparent, to provide the Heir with

an income independent of the Sovereign or the State.

After 660 years, the Duchy's land holdings have become more diversified,

but the Duchy is still predominantly an agricultural estate. Today, it

consists of around 57,000 hectares, mostly in the South of England. It is

run on a commercial basis, as prescribed by the parliamentary legislation

which governs its activities.

Prince Charles became the 24th Duke of Cornwall on The Queen's accession

in 1952. He is in effect a trustee, and is not entitled to the proceeds of

disposals of assets. The Prince must pass on the estate intact, so that it

continues to provide an income from its assets for future Dukes of

Cornwall.

The Duchy's net surplus for the year to 31 March 2002 was Ј7,827,000. As

a Crown body, the Duchy is tax exempt, but The Prince of Wales voluntarily

pays income tax (currently at 40%) on his taxable income from it.

FINANCES OF THE OTHER MEMBERS OF THE ROYAL FAMILY

Under the Civil List Acts, The Duke of Edinburgh receives an annual

parliamentary allowance to enable him to carry out public duties. Since

1993, The Queen has repaid to the Treasury the annual parliamentary

allowances received by other members of the Royal family.

The annual amounts payable to members of the Royal family (which are set

every ten years) were reset at their 1990 levels for the next ten years,

until December 2010. Apart from an increase of Ј45,000 on the occasion of

The Earl of Wessex's marriage, these amounts remain as follows:

Parliamentary annuity (not repaid by The Queen)

|HRH The Duke of Edinburgh | Ј359,000 |

Parliamentary annuities (repaid by The Queen)

|HRH The Duke of York |Ј249,000 |

|HRH The Earl of Wessex |Ј141,000 |

|HRH The Princess Royal |Ј228,000 |

|HRH Princess Alice, Duchess of Gloucester |Ј87,000 |

|TRH The Duke and Duchess of Gloucester | |

|TRH The Duke and Duchess of Kent HRH Princess Alexandra, Hon.|*Ј636,000 |

|Lady Ogilvy | |

* Of the Ј636,000, Ј175,000 is provided by The Queen to The Duke and

Duchess of Gloucester, Ј236,000 to The Duke and Duchess of Kent and

Ј225,000 to Princess Alexandra.

As with the Civil List itself, most of these sums are spent on staff who

support public engagements and correspondence.

TAXATION

The Queen has always been subject to Value Added Tax and other indirect

taxes and she has paid local rates (Council Tax) on a voluntary basis. In

1992, however, The Queen offered to pay income tax and capital gains tax on

a voluntary basis. As from 1993, her personal income has been taxable as

for any taxpayer and the Privy Purse is fully taxable, subject to a

deduction for official expenditure. The Civil List and the Grants-in-Aid

are not remuneration for The Queen and are thus disregarded for tax.

Although The Queen's estate will be subject to Inheritance Tax, bequests

from Sovereign to Sovereign are exempt. This is because constitutional

impartiality requires an appropriate degree of financial independence for

the Sovereign and because the Sovereign is unable to generate significant

new wealth through earnings or business activities. Also, the Sovereign

cannot retire and so cannot mitigate Inheritance Tax by passing on assets

at an early stage to his or her successor.

As a Crown body, the Duchy of Cornwall is tax exempt, but since 1969 The

Prince of Wales has made voluntary contributions to the Exchequer. As from

1993, The Prince's income from the Duchy has been fully subject to tax on a

voluntary basis. He has always paid tax, including income tax, in all other

respects.

ROYAL ASSETS

The Queen does not 'own' the Royal Palaces, art treasures from the Royal

Collection, jewellery heirlooms and the Crown Jewels, all of which are held

by Her Majesty as Sovereign and not as an individual. They must be passed

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