Thrifty Prince Charles slashes his costs... and pays more tax

Prince Charles has transformed himself into a "cut-price royal" in response to Britain's bleak economic outlook, his accounts revealed today.

The future King is leading by example, taking half as much money from the Government as he did last year, spending less and paying more tax.

A week after the Chancellor's austerity budget, the Prince's private secretary Sir Michael Peat said Charles was "absolutely" dedicated to economising. The Prince received £1.664 million from the taxpayer in the year to March 31 — down 45 per cent on the £3.033 million he received last year. His spending on official duties fell by 14 per cent from £12.5 million to £10.7 million.

Sir Michael said the shrinking bill for royal parties and banquets was "mainly down to cost efficiencies".

He said: "We're absolutely always looking for economy and trying to do things more efficiently. We've had quite a good go at that area [official entertaining and receptions] in the past 12 months. We always keep an eye on the economic climate. We do live in the real world — for the most part, anyhow."

The Prince of Wales's estate, The Duchy of Cornwall, saw its profits rise by 4.3 per cent to £17.2 million.

The report accompanying today's accounts said: "The financial results are considered to be satisfactory in what has been a difficult market. The capital account has also performed well in all property classes."

Charles slashed by half the amount he spent on official entertaining and receptions — from £527,000 to £252,000. His travel and subsistence costs fell by nearly £80,000 and the amount he spent on residences and offices not paid for by a ministerial grant dropped from £703,000 to £545,000.

The Prince's personal spending fell marginally by £16,000 from £1.71 million to £1.694 million — but his tax bill went up 12.6 per cent from £3.093 million to £3.484 million.

Sir Michael added: "In the heady days when the banks and property companies were making vast returns we didn't make vast returns. But when times get tough we carry on and still make a decent surplus. Charles prefers steady progress, not dashing to the heights and plunging to the depths."

Charles also spent £62,000 less this year on his London office and official residence at Clarence House, spending which is paid for by a tax payer grant.

Sir Michael admitted the economic climate had been "very tough" on the Prince's charities, which saw their income drop from £130 million to £110 million last year.

Foreign Office spending on the Prince's royal tours fell by £1 million to £700,000 — and the recent tour to Canada was paid for by the Canadian government.

Anti-monarchist campaign group Republic claimed the accounts showed Prince Charles cost the taxpayer more than £2,000 per working hour.

Campaign manager Graham Smith said: "There is little justification for spending public money on Charles. He is not a public official, he can quite easily afford his own security, travel and accommodation costs. When public spending is being slashed across the board, it's time to cut his bill to the taxpayer to zero."

Official travel: 2009 £1.7million, 2010 £692,000. More trips closer to home.
Entertaining and receptions: 2009 £527,000, 2010 £252,000.Major economy drive and fewer large scale events.
Staff costs: 2009 £6.3m, 2010 £6.24m. Number of staff reduced by three and pay freeze for others.
Tax paid: 2009 £3.093m, 2010 £3.484m. Tax paid to Treasury rose because cost of official duties dropped so there was less to offset against Duchy of Cornwall profits.
Greenhouse emissions: 2009 4,978 tonnes of CO2, 2010 4,762 tonnes. Prince's carbon footprint fell through greater use of renewable energy sources