Privy Purse
Encyclopedia
The Privy Purse is the British Sovereign's
remaining private income, mostly from the Duchy of Lancaster
. This amounted to £13.3 million in net income for the year to 31 March 2009. The Duchy is a landed estate of approximately 46,000 acres (200 square kilometres) held in trust for the Sovereign since 1399. It also has 190 miles (500 kilometres) of foreshore. The Duchy is valued at approximately £322 million in 2009. The land is organised into the Lancashire Survey, the Yorkshire Survey, the Crewe Survey, the Nedwood Estate and the South Survey. The Sovereign is not entitled to the Duchy's capital, but the net revenues of the Duchy are the property of the Sovereign in right of her Duchy of Lancaster. While the income is private, the Queen uses the larger part of it to meet official expenses incurred by other members of the British Royal Family
. Only the Queen and the Duke of Edinburgh
receive payments from Parliament which are not reimbursed by the Queen.
, who is the equivalent of the chairman of the trustees, has in recent years normally been a Government minister, although this is not a requirement.
looks after the Sovereign's personal financial affairs. His title is derived from the Privy Purse (an embroidered bag borne by the Keeper at a coronation) which contrasts with his Department's present-day use of computers and up-to-date accounting procedures. He manages the revenues which come from the Duchy of Lancaster. The Privy Purse meets both official expenditure incurred by The Queen as Sovereign and private expenditure.
, money paid from public funds to meet official expenditure relating to the Queen's duties as Head of State
. He also oversees the grant-in-aid
from the Royal Household
for the maintenance of the occupied Royal Palaces and for Royal travel. He is also responsible for the property maintenance of the Occupied Royal Palaces (such as Buckingham Palace
and St James' Palace) and their gardens, for the financial aspects of Royal travel, for personnel matters in the Royal Household, for the Queen's private estates (which include Balmoral Castle
and Sandringham House
) and for the commercial activities of the Royal Collection
Trust (for which annual accounts are published).
's Civil Government day-to-day costs were paid for by the sovereign under normal circumstances, the monies in this Public Purse being raised from the income of the Crown Estate
lands and holdings. Under "extraordinary" circumstances, namely in time of war or during budget shortfalls, Parliament
raised additional monies through taxation. The system was to a large degree self-funding through the Crown's large holdings, taxes being applied only when necessary, and almost always at the risk of public outcry. Taxes were normally very low, and the necessity to go to Parliament to fund wars was an effective check on the monarch's power.
As the role of the government increased in the 18th century, the Public Purse was increasingly unable to raise enough to fund the development of the country. In 1760 when George III
came to the throne, it was decided that the whole cost of civil government should be provided by Parliament, with the crown surrendering most of the hereditary revenues (principally the net surplus of the Crown Estate) by the King for the duration of the reign. In this new system Parliament was responsible for the finances of the UK, including paying the Crown the Civil List
allowance to meet the Sovereign's official expenses. In the fiscal year 2007/2008 the Crown Estate paid the Treasury
£211.00 million in return for £7.9 million in Civil List payments to the Queen.
Monarchy of the United Kingdom
The monarchy of the United Kingdom is the constitutional monarchy of the United Kingdom and its overseas territories. The present monarch, Queen Elizabeth II, has reigned since 6 February 1952. She and her immediate family undertake various official, ceremonial and representational duties...
remaining private income, mostly from the Duchy of Lancaster
Duchy of Lancaster
The Duchy of Lancaster is one of the two royal duchies in England, the other being the Duchy of Cornwall. It is held in trust for the Sovereign, and is used to provide income for the use of the British monarch...
. This amounted to £13.3 million in net income for the year to 31 March 2009. The Duchy is a landed estate of approximately 46,000 acres (200 square kilometres) held in trust for the Sovereign since 1399. It also has 190 miles (500 kilometres) of foreshore. The Duchy is valued at approximately £322 million in 2009. The land is organised into the Lancashire Survey, the Yorkshire Survey, the Crewe Survey, the Nedwood Estate and the South Survey. The Sovereign is not entitled to the Duchy's capital, but the net revenues of the Duchy are the property of the Sovereign in right of her Duchy of Lancaster. While the income is private, the Queen uses the larger part of it to meet official expenses incurred by other members of the British Royal Family
British Royal Family
The British Royal Family is the group of close relatives of the monarch of the United Kingdom. The term is also commonly applied to the same group of people as the relations of the monarch in her or his role as sovereign of any of the other Commonwealth realms, thus sometimes at variance with...
. Only the Queen and the Duke of Edinburgh
Prince Philip, Duke of Edinburgh
Prince Philip, Duke of Edinburgh is the husband of Elizabeth II. He is the United Kingdom's longest-serving consort and the oldest serving spouse of a reigning British monarch....
receive payments from Parliament which are not reimbursed by the Queen.
Chancellor of the Duchy of Lancaster
The Chancellor of the Duchy of LancasterChancellor of the Duchy of Lancaster
The Chancellor of the Duchy of Lancaster is, in modern times, a ministerial office in the government of the United Kingdom that includes as part of its duties, the administration of the estates and rents of the Duchy of Lancaster...
, who is the equivalent of the chairman of the trustees, has in recent years normally been a Government minister, although this is not a requirement.
Keeper of the Privy Purse
The Keeper of the Privy PurseKeeper of the Privy Purse
The Keeper of the Privy Purse and Treasurer to the King/Queen is responsible for the financial management of the Royal Household of the Sovereign of the United Kingdom....
looks after the Sovereign's personal financial affairs. His title is derived from the Privy Purse (an embroidered bag borne by the Keeper at a coronation) which contrasts with his Department's present-day use of computers and up-to-date accounting procedures. He manages the revenues which come from the Duchy of Lancaster. The Privy Purse meets both official expenditure incurred by The Queen as Sovereign and private expenditure.
Treasurer to the Queen
In recent years the office of Keeper has been held jointly with that of Treasurer to the Queen, who is responsible for the use of the Civil ListCivil list
-United Kingdom:In the United Kingdom, the Civil List is the name given to the annual grant that covers some expenses associated with the Sovereign performing their official duties, including those for staff salaries, State Visits, public engagements, ceremonial functions and the upkeep of the...
, money paid from public funds to meet official expenditure relating to the Queen's duties as Head of State
Head of State
A head of state is the individual that serves as the chief public representative of a monarchy, republic, federation, commonwealth or other kind of state. His or her role generally includes legitimizing the state and exercising the political powers, functions, and duties granted to the head of...
. He also oversees the grant-in-aid
Grant-in-aid
A grant-in-aid is money coming from central government for a specific project. This kind of funding is usually used when the government and parliament have decided that the recipient should be publicly funded but operate with reasonable independence from the state.In the United Kingdom, most bodies...
from the Royal Household
Royal Household
A Royal Household in ancient and medieval monarchies formed the basis for the general government of the country as well as providing for the needs of the sovereign and his relations....
for the maintenance of the occupied Royal Palaces and for Royal travel. He is also responsible for the property maintenance of the Occupied Royal Palaces (such as Buckingham Palace
Buckingham Palace
Buckingham Palace, in London, is the principal residence and office of the British monarch. Located in the City of Westminster, the palace is a setting for state occasions and royal hospitality...
and St James' Palace) and their gardens, for the financial aspects of Royal travel, for personnel matters in the Royal Household, for the Queen's private estates (which include Balmoral Castle
Balmoral Castle
Balmoral Castle is a large estate house in Royal Deeside, Aberdeenshire, Scotland. It is located near the village of Crathie, west of Ballater and east of Braemar. Balmoral has been one of the residences of the British Royal Family since 1852, when it was purchased by Queen Victoria and her...
and Sandringham House
Sandringham House
Sandringham House is a country house on of land near the village of Sandringham in Norfolk, England. The house is privately owned by the British Royal Family and is located on the royal Sandringham Estate, which lies within the Norfolk Coast Area of Outstanding Natural Beauty.-History and current...
) and for the commercial activities of the Royal Collection
Royal Collection
The Royal Collection is the art collection of the British Royal Family. It is property of the monarch as sovereign, but is held in trust for her successors and the nation. It contains over 7,000 paintings, 40,000 watercolours and drawings, and about 150,000 old master prints, as well as historical...
Trust (for which annual accounts are published).
History
In the past, the UKUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's Civil Government day-to-day costs were paid for by the sovereign under normal circumstances, the monies in this Public Purse being raised from the income of the Crown Estate
Crown Estate
In the United Kingdom, the Crown Estate is a property portfolio owned by the Crown. Although still belonging to the monarch and inherent with the accession of the throne, it is no longer the private property of the reigning monarch and cannot be sold by him/her, nor do the revenues from it belong...
lands and holdings. Under "extraordinary" circumstances, namely in time of war or during budget shortfalls, Parliament
Parliament of the United Kingdom
The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom, British Crown dependencies and British overseas territories, located in London...
raised additional monies through taxation. The system was to a large degree self-funding through the Crown's large holdings, taxes being applied only when necessary, and almost always at the risk of public outcry. Taxes were normally very low, and the necessity to go to Parliament to fund wars was an effective check on the monarch's power.
As the role of the government increased in the 18th century, the Public Purse was increasingly unable to raise enough to fund the development of the country. In 1760 when George III
George III of the United Kingdom
George III was King of Great Britain and King of Ireland from 25 October 1760 until the union of these two countries on 1 January 1801, after which he was King of the United Kingdom of Great Britain and Ireland until his death...
came to the throne, it was decided that the whole cost of civil government should be provided by Parliament, with the crown surrendering most of the hereditary revenues (principally the net surplus of the Crown Estate) by the King for the duration of the reign. In this new system Parliament was responsible for the finances of the UK, including paying the Crown the Civil List
Civil list
-United Kingdom:In the United Kingdom, the Civil List is the name given to the annual grant that covers some expenses associated with the Sovereign performing their official duties, including those for staff salaries, State Visits, public engagements, ceremonial functions and the upkeep of the...
allowance to meet the Sovereign's official expenses. In the fiscal year 2007/2008 the Crown Estate paid the Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
£211.00 million in return for £7.9 million in Civil List payments to the Queen.