Scotland 'may cut money to the Queen'

Palace aides have briefed newspapers about the transfer of Crown assets

The Scottish Government may be about to cut funding to the monarchy under plans for further devolution, according to reports.

The over £1m annual profit from the Crown Estate in Scotland is set to be retained by the Scottish Parliament under a devolution deal planned for next April.

Alex Salmond had originally agreed that Scotland would continue to pay the monarchy from estate revenues as part of the deal to transfer them to Scottish Parliament control.

But both The Times and Daily Telegraph newspapers cite Palace sources who believe that Nicola Sturgeon may find another use for the cash.

“Originally Alex Salmond did imply that [the money would be paid to the monarchy], but the new leadership said no,” a senior palace source told The Times.

The money from the estates is currently transferred to the UK Treasury, which makes a direct contribution to the Crown Estate each year.

The Scottish Crown Estates include revenue from an offshore wind farm, mineral rights, and fishing rights.

It emerged yesterday that the Monarchy will receive £42.7 million from British taxpayers in 2016-17, up from £40 million in the current financial year.

The briefing of the newspapers by the Palace is not the first time the monarchy has publicly come to blows with Scotland’s government.

After the result of the independence referendum result was announced last year David Cameron said the Queen had “purred down the line” when he told her Scotland would remain a part of the UK.

The PM later told the Andrew Marr Show on BBC One that he felt “extremely sorry and very embarrassed” for revealing the Queen’s political views – usually considered a breach of protocol.

The SNP say they would retain the monarchy in the case of an independent Scotland.