Budget Belt-Tightening at Buckingham Palace

The Royal Family is under a money crunch as the Queen is told to cut spending.
3:00 | 01/28/14

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Transcript for Budget Belt-Tightening at Buckingham Palace
of a budget belt tightening at Buckingham palace. New reports that the royal family is under a money crunch, so to speak. ABC's lama Hasan has the story. Reporter: It looks like the queen is down to her final million dollars. In a report published today parliament criticized the royal household for not tightening its belt enough saying it should be making more money and warning the royal family they must get a grip to protect the royal estates. There's a massive backlog in repairs. Rereckon at least 40% of the buildings are -- need some repair. The royal household is spending more than they're getting. Reporter: It seems last year the royal household overspent so much it now only has $1.6 million left in its reserve fund. Its lowest level in its history. The palaces are crumbling, the royal homes are falling apart. No money for repairs. And staff forced to run around with bucks to catch rainwater to protect art and antiquities much the solution, make more money by opening the palace doors for visitors and tourists and, well, be more frugal. During the 2012 olympics when money problems first reared their ugly head, the queen herself did just that, out fancy rooms at St. James' palace for parties and cutting down on public appearance, even telling prince Charles he'd have to start footing the bill for William and Kate's global travel. The queen is very frugal and there's a sort of myth that she walks around the palace switching off lights. The Royals have asked to be more creative with their finances which could mean we'll be seeing more of this younger royal brand. William, Kate, baby George in tow and prince harry, of course. So I guess the Royals, well, they're a bit like us, they have to watch their spending every now and again but as for the queen, well, she's not exactly strapped for cash. Her personal wealth is valued at a cool $500 million. So my guess is, she'll be just fine. Lara. I was just going to say I think she's going to be okay.

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