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MPs urge royals to permit scrutiny of finances

Robert Verkaik
Thursday 30 May 2002 19:00 EDT
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MPs have called on the Royal Family to open its books to prove that it provides value for money, after an investigation by The Independent revealed increasing strains on the royal finances.

Geraint Davies, a Labour member of the Commons Public Accounts Committee, said: "It's very important the public know what royal expenditure is from the taxpayer and what is private income. Are we sure we're getting reasonable value for money? In this day and age, when there is increasing scrutiny of the Queen, it is important she is seen to be open and transparent."

Mr Davies said the committee was being obstructed in efforts to scrutinise grace-and-favour apartments in Kensington Palace. "That underlines the guarded nature of the royal finances," he said. "I personally think the Queen is an important asset for the British economy in terms of tourist revenue."

The job of responding to the call for greater financial accountability will fall to Alan Reid, who takes over from Sir Michael Peat as Keeper of the Privy Purse, the Queen's financial director, in July.

Mr Davies said the remit of the National Audit Office, the public spending watchdog, should be extended to cover royal spending. He said: "In jubilee year, it is important to celebrate the monarchy, but it is also time for modernisation and renewal."

Paul Flynn, Labour MP for Newport West, said he would table an early-day motion calling for a fresh look at the Royal Family's income when the Commons returns on 10 June. He said: "I would like to see complete transparency – what they pay, and income tax arrangements that apply to them. They don't pay capital gains tax, they don't pay inheritance tax."

Calling for the National Audit Office to take on the role, he said: "The Royal Family have very sharp accountants who are able to bluff and bamboozle politicians."

Norman Baker, Liberal Democrat MP for Lewes, said the Royal Family could expect no sympathy from the public when it was secretive about its income. "Let's start by having a full and transparent account of who owns what, what is owned by the state and what by the individuals, and how much tax is paid," he said.

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