• Personal spending grew 2.7% to 2.6m
  • His contribution to Royal Wedding costs estimated at 400,000
  • Personal income increased 3% to 18.3m
  • Spending on official entertaining fell 14%

By Rebecca English

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Prince Charles's spending shot up by 723,000 last year as the cost of the Duchess of Cambridge's wardrobe and the royal wedding helped take a toll his finances.

In Kate's first year as a working member of the Royal Family, Prince Charles's official spending rose by four per cent to 9.8 million, his private spending by almost three per cent – while his taxpayer-funded travel bill soared by 22 per cent.

While it was made clear that the new Duchess is in no way responsible for the vast proportion of the increases, Clarence House confirmed today that the prince does meet the bill for Kate's working wardrobe out of his official budget.

Jet set: Prince Charles and the Duchess of Cornwall, pictured at Wimbledon this week, have spent 22% more on air travel this year

Jet set: Prince Charles and the Duchess of Cornwall, pictured at Wimbledon this week, have spent 22% more on air travel this year

But they declined to reveal exactly how much by as it would be, said a spokesman, 'impolite' to do so.

Aides insisted, however, that the new Duchess's impact on his finances had been 'relatively minimal' as most of the costs associated with her have been absorbed by Prince William's existing staff.

And they maintained that Charles, his wife, the Duchess of Cornwall, William, Kate and Prince Harry continued to be 'of real value to the country'.

Other key points revealed in the prince's annual review, released to the public yesterday, included the news that:

  • Charles's funding from the taxpayer soared by 11% during the last financial year.
  • Payments to cover his travel by private jet, helicopter and train as well as grants  for the upkeep of Clarence House, his official London residence, and press office, rocketed from 1,962,000 to 2,194,000 - an increase of 232,000.
  • His personal income from the Duchy of Cornwall also rose by three per cent to 18.3 million, up by more than 360,000.
  • The prince, who pays tax voluntarily at the highest rate, saw his bill from the Inland Revenue rise marginally from 4,398,000 to 4,496,000.  He was, however, able to write a staggering 9.8 million off as legitimate working expenses.

On a positive note, Charles's spending on official entertaining, receptions, donations and gifts was down by 14 per cent to 384,000.

Glamorous evening: The Duchess of Cambridge at a Bafta event in LA last year

Glamorous evening: The Duchess of Cambridge at a Bafta event in LA last year

The prince also conducted 670 official engagements last year and helped to raise a remarkable 131 million for charity.

The report also confirmed that Charles's personal spending - including his contribution towards last year's royal wedding - rose by 2.7 per cent to 2.6 million.

Aides declined, however, to reveal exactly how much the prince stumped up for William and Kate's nuptials exception to say that 'it wasn't nearly as much as anyone thinks' as both the Queen and the Middleton family made generous contributions towards the cost of the day.

'Most people wouldn't say how much they paid for their daughter's wedding, it is a private matter,' a senior royal aide remarked.

WHERE DOES THE MONEY COME FROM?

Prince Charles has several sources of income - grants-in-aid, Government departments and a private income from the Duchy of Cornwall estate.

The landed estate is given to the heir to the throne.

Grants-in-aid cover official travel by rail and air, communication support and the upkeep of Clarence House.

Charles's contribution to the Royal Wedding came from his 'non-official expenditure'.

Other royal sources suggested it cost around 400,000 - compared to the many millions it is believed to have brought into the country in tourist revenue.

The publication of Charles's annual review offers an unrivalled chance to peak at the prince's spread-sheets.

The bulk of his fortune comes from the Duchy of Cornwall, an independent portfolio of land, residential and commercial property holdings established in the 14th Century to provide an income for the heir to the throne.

In 2011-2012 his income from that rose from 17.7 million to 18.2 million.

Out of the Duchy pot, Charles pays for the cost of running his private office and charities, which last year amounted to 9.8 million, up by 387,000.

That includes the 6.7 million cost (68 per cent of the total budget) of running his 135 staff including a round-the-clock butler, two valets and dressers, three chauffeurs, five chefs and kitchen porters and 23 private office staff. He also pays for the separate nine-strong office of the Duke and Duchess of Cambridge and Prince Harry.

Included in this for the first time, as revealed by the Mail earlier this week, is the cost of his daughter-in-law's wardrobe – or at least those clothes she wears for official functions and engagements.

Unofficial estimates suggest that it could be as much as 35,000 in the last six months alone, although Clarence House have declined to comment on any figures.

The money comes out of a 2.9 million budget set aside for office staff, which is 100,000 up on the previous year.

'Yes it is absolutely true that the cost of clothes worn by the Duchess on official engagements is being born by the Prince of Wales through his official expenditure, as it is for other members of his family,' said an aide.

'We would not go into exactly what is spent on her clothes as that would be rather impolite.

'Aside from that, however, the additional costs of that come with a new member of the Royal Family, such as the Duchess of Cambridge, are actually very minimal.

'There have been no new property or staffing costs involved and she has done most of her travelling with the Duke of Cambridge, which would have been incurred anyway. So the cost to taxpayers is really is very minimal.

'We think it [the Duchess's arrival] really is extraordinary value for money.'

Charles also receives a separate tranche of funding directly from taxpayers including 1.3 million to cover his official air and rail travel, up from just over 1 million last year.

Prince Charles attending one of his many official functions, meeting veterans at the Bomber Command Memorial in Green Park yesterday

Prince Charles attending one of his many official functions, meeting veterans at the Bomber Command Memorial in Green Park yesterday

That hike, said his spokesman, was largely down to increased travel by his children. William and Kate undertook their inaugural tour as a married couple of Canada and the US last year, while Harry conducted his first solo tour on behalf of the Queen to the Caribbean and Brazil back in March.

Charles and Camilla were also asked by the Foreign and Commonwealth Office to take on several high-profile tours abroad including the Middle East, South Africa, Tanzania and Scandanavia.

In all last year the couple conducted 804 joint and solo engagement in the UK abroad and travelled almost 48,000 miles.

'The increase was due to several factors, including, more overseas visits by the Prince and the Duchess, more overseas visits by the Duke and Duchess of Cambridge and by Prince Harry, longer distances travelled during those visits, and the inclusion in the latest financial year of part of the costs of a spring tour in 2011 to Portugal, Spain and Morocco,' a spokesman said.

Much of the prince's official expenditure is written off against tax, the accounts reveal, including the 137,000-a-year cost of maintaining his gardens which, his office says, are used for official entertaining.

Similarly the 298,000 cost of his official dining was knocked off the bill as was a further 166,000 for housekeeping and office cleaning and 201,000 spent on utility bills.

Palace officials confirmed, however, that the taxman did not allow them to include the cost of Kate's dresses in this as, according to the Inland Revenue, such items have a 'dual purpose' and can be worn by her privately as well.

'Rest assured, the Inland Revue go through our accounts line by line, just as they do with any private individual. The Prince absolutely pays what he should,' an aide maintained.

Mike Warburton, Tax Director at Grant Thornton said last night that he was impressed by the prince's operation.

'I think the prince actually runs a pretty tight ship, helped by the fact that the Duchy of Cornwall have excellent, well-managed assets,' he said.

'When all is said and done, he appears to provide good value for money.'
But Graham Smith, chief executive of the campaigning group Republic, called for the Government to bring royal spending under 'proper control'.

He said: 'At a time when the country is facing sweeping cuts to public spending, Charles Windsor wilfully helps himself to whatever travel funds he wants or feel he needs. This 'something-for-nothing' culture in the Royal Household must end.

'Charles must not be free to spend whatever public money he likes, when he likes.'

PRINCE CHARLES'S BALANCE SHEET:
WHERE HE SPENDS HIS MONEY

Income
Duchy of Cornwall - 18,288
Grants-in-aid - 1,811,000
Government departments - 383,000

Total 20,482,000

Expenditure
Official duties and charitable activities: 9,831,000

Grants-in-aid:
London office and official residence 431,000
Official travel by air and rail 1,318,000
Communications  62,000
Overseas tours and military secondees 383,000

Total official expenditure: 12,025,000

Surplus after costs: 8,457,000

Tax (including VAT):  4,496,000

Non-official expenditure: 2,609,000

(Operating surplus 1,352,000)

By numbers:

161.1 full-time equivalent staff employed by the prince
9,478 number of people officially entertained at Clarence House
47,622 miles travelled by Charles and Camilla on official engagements
34,550 people visited Charles's gardens at Highgrove last year
1.3 butlers employed by the prince
2.5 valets and dressers serving Charles and Camilla
76,825 letters received by Charles, Camilla, William, Kate and Harry last year
1,745 replies sent by the future king
72 million live streams of last year's royal wedding broadcast on YouTube's Royal Channel
201,000 spent on utility bills
137,000 spent on the upkeep of Charles's gardens
131 million raised for the prince's charities
2,703 tonnes of CO2 emitted by the royal household
670 official engagements undertook by Charles
63 charities patronised by the Duchess of Cornwall


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and the rich get richer

Brilliant! Keep going Charlie boy. Hopefully, this will stir up enough desire for people to call for a republic. Seriously, please continue as you are.

12% pay increase, I didn't receive any pay increase this year. I work longer hours, pay higher tax and told no pay rise due to economic crisis in Europe!!! One law for the rich and powerful and another for the working classes!!! No change there then... I hope my boss reads this I will not accept another year without any pay rise!!!!

Oh Yeah, on who's authority

Well of course he got 12%, he needs that to compensate for the true rate of inflation, and if he didn't get the 12% he'd be worse off, and we can't have that now, can we? As for the rest of us, the other rate of inflation applies....

I've not had a say in this as a taxpayer: all taxpayers should. I absolutely don't agree to this. Haven't they got enough money? This is absolutely disgusting. Time for the royal family to go. Sick of being ripped off left, right and centre.

What exactly does he bring in monetary terms to this country compared to what he takes. Not a lot of use is he??

The rich get richer and the poor get poorer How can Charles be green when he keeps 3 mansions to live in and another one for a bolthole for Camila which cost us 4 million a year to secure this is on top of the security for the other 3 He should pay for his own security

and that hypocrite says that "We need to get used to having less stuff" thats rich coming from someone that has everything.

They have no concscience. Let them give up their "charity fundraising" and pay for themselves.

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