Mr. Alan WilliamsTo ask the Prime Minister what is the annual financial value of the inflation-proofing built into the civil list; and by what amounts that has exceeded the sum required for annual indexation based on the actual cost of living in each year since the new civil list was introduced.
§ The Prime MinisterThere is no inflation-proofing built into the civil list. While the £7.9 million axed annual payment took account of the average rate of inflation for the years 1979–1989, if actual inflation falls below this level the household is not in a position to spend the surplus but is expected to carry it forward to the end of the 10-year period. This was made quite clear in paragraph 12 of the 1990 report of the Royal Trustees—HC 629—which reads
If cost inflation is lower in overall terms than the rate assumed in paragraph 11, the Royal Trustees would expect the Royal Household to carry forward a surplus at the end of the decade, for use in the next period.Civil list expenditure to date under the new arrangements has fallen well below the actual rate of inflation.
Mr. Alan WilliamsTo ask the Prime Minister what account is taken of the inflation-proofing element in the annual refund of civil list money relating to those who have been removed from the civil list.
§ The Prime MinisterAs set out in the report of the Royal Trustees—paragraphs 21 to 23 of HC464, 11 February 1993—Her Majesty the Queen now reimburses the Consolidated Fund for the full cost of all the parliamentary annuities paid to members of the royal family except the Queen Mother and the Duke of Edinburgh. The reimbursement for 1993 has already been received. The annuities are fixed sums and the question of inflation does not arise.