Leading article: Our sovereign debt

If the government were to grant an award to the public servant who has made the greatest effort over the past year to manage expenditure, Her Majesty the Queen would be a strong contender. The royal public finances, published this week, reveal that the cost of running the royal household has fallen over the past year by 5.3 per cent to £32.1 million. Proportionally, the Queen has made more cuts in one year than George Osborne intends to do over five. The royal household is now costing the taxpayer less in absolute terms than it was in 2007.

If the government were to grant an award to the public servant who has made the greatest effort over the past year to manage expenditure, Her Majesty the Queen would be a strong contender. The royal public finances, published this week, reveal that the cost of running the royal household has fallen over the past year by 5.3 per cent to £32.1 million. Proportionally, the Queen has made more cuts in one year than George Osborne intends to do over five. The royal household is now costing the taxpayer less in absolute terms than it was in 2007.

Had the British government reduced its total costs by 5.3 per cent, the structural deficit would have been eliminated already — and the era of austerity ended. As things stand, monthly figures show new spending records being set. The cuts have not yet begun. Top salaries in the royal household have been frozen over the past year — in contrast to the promised public sector ‘pay freeze’, which has resulted in some town hall fatcats awarding themselves hefty pay rises regardless.

It is counter-intuitive that an unelected monarchy should act more wisely with public money than an elected government.