Amid slump, Charles costs almost a quarter more – but aide insists he's still great value

Published on Tuesday 23 June 2009 22:51

PRINCE Charles cost taxpayers £3 million last year – an annual rise of almost a quarter – while his own tax bill fell by almost ten per cent, Clarence House accounts showed yesterday.

PRINCE Charles cost taxpayers 3 million last year – an annual rise of almost a quarter – while his own tax bill fell by almost ten per cent, Clarence House accounts showed yesterday.

The money from grants-in-aid and Government departments jumped 23.5 per cent, from 2,454,000 to 3,033,000.

The main cost was a 48 per cent rise in official travel by air and rail, which increased from 1,157,000 to 1,710,000.

Prince Charles's private income increased by just 1 per cent to 16.4m during the last financial year. The money, which comes from the surplus generated by the Duchy of Cornwall – the landed estate given to the heir to the throne which funds the public, charitable and private activities of Charles and the Duchess of Cornwall, and a proportion of the costs of Princes William and Harry – increased by 185,000 to 16,458,000.

His official expenditure rose nearly 20 per cent from 10,451,000 to 12,513,000. He paid less tax, with his bill falling from 3,429,000 to 3,093,000 – a drop of almost 10 per cent.

Non-official expenditure fell by 23 per cent, from 2,217,000 to 1,710,000, which is partly attributed to his decision to holiday in the UK last year.

Senior aide Sir Michael Peat said Prince Charles had been mindful of tough times. "It's a recession and we have to say that we've looked at all costs very carefully," he said.

"We are by no means immune to it. The Duchy is a ship designed to sail in most weather conditions but we have to look at areas and be careful. We are always reviewing costs."

Sir Michael said the value of Duchy assets was just under 600m and Prince Charles took a long-term approach to finances: "He didn't borrow money. We've planned for the long term. We've entered recession without having a great boom before we got into the recession, which means we're not suffering any bust at the moment, touch wood."

He said the rise in costs for official travel was due to the two long-haul trips to the Far East and South America.

"It's easy to underestimate the importance and success of these tours," Sir Michael said. "They're all requested and paid for by the Government for good reasons."

Anti-monarchy group Republic called for the Prince to fully disclose his expenses. A spokesman said: "This is a double-whammy for the taxpayer – less tax and more subsidies while the Government is having to make swingeing cuts to public services. The taxpayer is asked to subsidise the Prince through multimillion-pound grants – we deserve to know the details of his expense claims that he is using to reduce his tax bill."

The two foreign trips cost just over 1m and focused on the Prince's passion for fighting climate change and protecting the environment.

Other figures in the annual accounts showed that the Prince spent 6.2m on staff salaries, 65,000 on his gardens and more than 500,000 on official entertaining and receptions. The number of staff he employs rose by six to 125 full-time equivalent employees – his highest yet.

Sir Michael stressed that the increase was because the Prince was busier than ever.

PRINCELY SUMS

Income

Duchy of Cornwall 16.5m 1% increase on last year

Grants-in-aid 2.2m +13%

Government departments 821,000 +63 %

Total income and funding 19.5m +4%

Expenditure

Staff salaries 6.2m +15%

Staff training and recruitment 230,000 +32%

Travel and subsistence 308,000 +36%

Consultants and professional fees 171,000 +37%

Entertaining and receptions 527,000 +27%

Donations and gifts 66,000 +65%

Utilities 182,000 +31%

Residences and offices 703,000 +68%

Press and media 89,000 -21%

Stationary and office equipment 218,000 +19%

Computers 347,000 +8%

Housekeeping and cleaning 105,000 -20%

Insurance 45,000 -8%

Gardens 65,000 +3%

Depreciation 180,000 +18%

Total spent on official duties 9.5m +19%

Other expenditure

London office and official residences 422,000 -41%

Official travel 1.7m +48%

Communications support 80,000 No change

Overseas tours and military aides 821,000 +63%

Total 3m +13%

FOREIGN TOURS COST HIS SUBJECTS A COOL MILLION POUNDS

TWO extensive overseas tours by the Prince of Wales and Duchess of Cornwall cost the taxpayer just over 1 million.

The couple's visit to the Far East and South America on behalf of the Government contributed to a 48 per cent rise in their official air and rail travel.

The travel – paid by a grant-in-aid from Parliament – increased from 1.1 to 1.7m during the last financial year. In March Prince Charles and Camilla flew to Chile, Brazil, Ecuador and the Galapagos islands. They also visited Japan and Brunei last October but the Duchess returned home at her husband's expense before he travelled on to Indonesia.

The cost of each trip was about 500,000, and much of that would have been down to the chartered planes used to make the long-haul flights and other journeys associated with the tours.

The main theme for the visits was climate change, with Charles focusing on the threat to rainforests. He made major speeches in both regions calling on the world to protect the natural resources.

The Far East tour was sanctioned by the Government despite the global financial crisis hitting Britain's financial houses.

Clarence House stressed that the visits were at the request of the Government to further British interests overseas.

Peter Ricketts, the Foreign Office's permanent under-secretary, said that the prince "has 40 years of international experience, with an established reputation as a thought leader in areas such as climate change and engaging with the Islamic world".