Britain Freezes Royal Allowance

L O N D O N, July 4 -- The government payments that support QueenElizabeth II in her official duties will be frozen at $11.9 milliona year for the next decade, Prime Minister Tony Blair announcedtoday.

“Very substantial efficiencies” by the royal household havehelped create a surplus of $53 million, Blair told the House ofCommons.

Blair added that cost-cutting by the royals had reduced overallspending on the monarchy by 55 percent in real terms over lastdecade, though he did not announce those figures.

In the last few years, the royal household has tightened itsbelt, scrapping the royal yacht Britannia and trimming maintenancecosts for its handful of palaces.

The monarchy still costs British taxpayers $56 million a year -including $23 million last year for the upkeep of occupied royalpalaces and $13 million for travel.

The settlement pays for staff wages and other official expenses.It is reviewed every 10 years, and the present rate of support hasbeen in effect since 1991.

A lower-than-expected inflation rate contributed $23 million tothe surplus. Unspecified royal household cost-cutting saved $12million, and interest added $18 million.

Not all politicians were so impressed.

“This is a pretty big winter heating allowance,” said Laborlawmaker Dennis Skinner, referring to the subsidy received bypensioners.