The Firm: The Troubled Life of the House of Windsor by Penny Junor

takes charge of the Lord Chamberlain’s Office, which is where you would have expected him to be in the first place.
    Once he had completed the report, Lord Airlie arranged for Michael Peat to stay on at the Palace for the next three years to help him develop and implement the recommendations Peat had made. The two men had worked very closely together during the writing of the report and got on well together; Airlie’s past experience at Schroders and General Accident had taught him that it was vital for the chairman to work closely with the consultant. Airlie knew that many of Peat’s ideas would never fly and he was able to say so right away and eliminate unnecessary work. The entire thing was the art of the possible and some reforms had to be sacrificed in the interests of progressing more important ones.
    Among the most important was sorting out the Civil List. This is the sum voted by Parliament to pay for the sovereign in carrying out her duties as Head of State, and for the running of the royal household. It is much misunderstood and hascaused more grief over the years to the monarchy than anything else. It is worth putting the cost into perspective. The monarchy costs £36.8 million a year to run; the Atomic Physics Particle Research Laboratory, by comparison, costs about £100 million, the Welsh fourth television channel (S4C) about £74 million a year, the British Museum about £40 million. But where the comparison falls down is that the last three are paid for by the taxpayer, and the taxpayer doesn’t actually pay for the monarchy at all. It is paid for by the revenue that comes from the Crown Estates. The taxpayer doesn’t pay a penny. After the Norman Conquest in 1066 all the lands of England belonged to William the Conqueror and he and his successors received the rent and profits from the land, which they used to finance the government. Over the years monarchs sold bits of land or gave away large estates to nobles and barons in return for military service until, by 1702 (historians must forgive me for simplifying the story), there wasn’t enough income from what remained to pay for the cost of the government (which had grown in the intervening seven hundred years) and the royal household. Parliament therefore introduced an Act to stop the Crown selling off more of its land, and took over management of the estates. When George III came to the throne in 1760 he relinquished his right to the revenue in return for a fixed annual sum of money from Parliament, which became known as the Civil List. The Crown Estate still belongs to the sovereign ‘in the right of the Crown’, which means it is not her private property, but at the beginning of each reign the new sovereign traditionally hands over the revenue from the Crown Estate to the Exchequer for his or her lifetime.
    It is a huge business. The Estate owns more than 250,000 acres of agricultural land throughout England and Scotland: 7500 acres of forestry at Windsor, another 7500 at Glenlivet, more in Somerset and smaller amounts elsewhere; and it ownsWindsor Great Park – a further 5313 acres which includes Ascot Racecourse. It also has urban estates, mostly in central London – residential property in Regent’s Park, Kensington and Millbank; and commercial property in Regent Street, Victoria Street and in the City, including the site of the Royal Mint. It also owns more than half of the United Kingdom’s foreshore and almost all the seabed to a limit of twelve miles from the shore, which is used for everything from marine industries to leisure activities.
    All of this is run by a Board of Commissioners which employs experts in various fields of estate management, and under the Crown Estate Act of 1961 has a duty to maintain and enhance the value of the Estate. Management fees are taken out of the revenue, but the remainder – about £150 million – goes to the Treasury. Thirty-six million pounds from that sum is paid to the Queen, and the government