Prince of Wales

HC Deb 21 October 1981 vol 10 c129W

Mr. Frank Allaun

asked the Chancellor of the Exchequer what is the net loss per annum to the Exchequer of the recent financial arrangements with the Prince of Wales.

Sir Geoffrey Howe:

The net revenues of the Duchy of Cornwall voluntarily surrendered to the Consolidated Fund in 1980 amounted to £275,222. This represented 50 per cent. of the total net revenues of the Duchy. Under the new arrangements agreed with the Prince of Wales, this annual surrender will in future be reduced to 25 per cent. of the total net revenues. Precise figures for the change in payments cannot be given, as they will vary in line with the future income of the Duchy of Cornwall. I draw the attention of the hon. Member to the following press statement issued by Buckingham Palace on 2 October 1981. It explains the change in the arrangements in detail.

The money paid under Act of Parliament from the Consolidated Fund to The Queen's Civil List makes no provision for the Prince and Princess of Wales or their Household. His Royal Highness' expenses are met out of the income from the Duchy of Cornwall.From the Prince of Wales' majority on 14 November 1969, His Royal Highness, as Duke of Cornwall, became entitled to the whole net revenues of the Duchy. At that time His Royal Highness offered to make over to the Consolidated Fund, as from the date of his majority, half of the Duchy of Cornwall net revenues. This offer was accepted by the Government of the day and it was agreed that the amount to be made over should be subject to review on His Royal Highness' marriage or in the light of other changes in circumstances.Following His Royal Highness' marriage, the expenses of his Household and the amounts required to meet the cost of undertaking public duties, which had already increased substantially since 1969, will rise sharply. In particular, there will be the additional cost of maintaining a separate establishment at Kensington Palace, and a considerable increase in the size of the Prince and Princess of Wales' Household. Nevertheless, so far as can at present be foreseen, the revenues of the Duchy of Cornwall will continue to exceed His Royal Highness' requirements, and he has offered to continue to pay to the Consolidated Fund, from this year, 25 per cent. of the Duchy's net revenues. This offer has been accepted by the Government. It has been agreed that the arrangement should be reviewed if future changes of circumstances require it.