Queen's Civil List payment frozen at £7.9m for 2010

Funding for for the Queen's official duties as head of state is to remain frozen at £7.9m for the next 12 months. The Civil List payment to the Royal Family has remained at the same level for 20 years, leaving it worth only a quarter in real terms. But the fund can be topped up from the Civil List Reserve, which will stand at £8m at the end of this year. The Queen agreed to the Civil List remaining flat this year, George Osborne said.

Over the longer term, the Government will look at ways to modernise the Civil List mechanism and will "propose a new means of consolidated support for Her Majesty for the future" at a later date.

The Budget also included plans for Civil List expenditure to be subject to the same level of scrutiny as all other government spending, through the National Audit Office and the Public Accounts Committee.

"I am sure everyone in this House will want to join me in recognising the Queen's loyal service and immense contribution to public life," Mr Osborne said.