Scottish Government dismisses 'nonsense' rumours Scotland will cut funding to the Queen

Reports suggested Holyrood would take over assets controlled by the Crown

The Queen and Prince Philip attend a garden party at Balmoral Castle (AFP/Getty Images)

Rumours of Scotland preparing to hold back funding for the Queen and laying the ground for a future republic are “nonsense”, according to the Scottish Government.

Media reports this week suggested that Nicola Sturgeon’s Scottish National Party were engaged in a revenge mission linked to the Queen’s pro-union stance during last year’s independence referendum.

It was claimed the SNP would use the imminent reorganisation of the Crown Estate in Scotland, with Holyrood taking over control of assets previously run from London, to effectively cut £2.2 million from the royal family’s funding.

With a key proposal of the Smith Commission - which looked at enhanced devolution – ending London’s full control of the Crown Estate north of the border, it was reported that Holyrood had refused to make up the shortfall from the break-up of the UK Crown Estate.

The result was forecast to be Scotland ending 300 years of funding contributions for the royals.

However the Scottish Government has dismissed claims that Scotland is not paying its share of the royal upkeep, stating there would be “no change” in Scotland’s contribution made through a mechanism known as the Sovereign Grant.

A Scottish government spokeswoman said “Scotland will continue to make the same financial contribution to the monarchy as at present – there will be no reduction in the Sovereign Grant as a result of devolution of the Crown Estate.”

Under the current system, the Queen receives revenue direct from the Treasury. Holyrood pointed out that as most taxes in Scotland continue to be controlled by the Treasury, Scotland will continue to make the same contributions as it does now, through general taxation.

Although the SNP government have not identified any new specific stream of income to replace the changes in the Crown Estate mechanism, Ms Sturgeon’s office said there would “no change” in Scotland’s overall contribution.