One is not amused – queen has just €1.2m left in reserve
Queen Elizabeth's finances are at a "historic low" with just £1m (€1.2m) left in reserve, MPs have warned.
Her courtiers were advised to take money-saving tips from the Treasury.
A report by the Public Accounts Committee found that the queen's advisers were failing to control her finances while the royal palaces were "crumbling".
MPs said her advisers had overspent to such an extent that her reserve fund had fallen from £35m (€42m) in 2001 to just £1m (€1.2m) today.
The royal household had made efficiency savings of just 5pc over the past five years compared with government departments that are cutting their budgets by up to one-third.
MPs on the committee said the Treasury must "get a grip" and help to protect the royal palaces from "further damage and deterioration".
Margaret Hodge, the Labour chairman of the committee, said: "We believe that the Treasury has a duty to be actively involved in reviewing the household's financial planning and management – and it has failed to do so."
In April 2012, the Sovereign Grant replaced the old way of funding the royal family.
A Buckingham Palace spokesman said the Sovereign Grant had made the queen's funding "more transparent and scrutinised" and was resulting in a "more efficient use of public funds".
He said that repairing the royal palaces was a "significant financial priority", and that the royal household had almost doubled its income to £11.6m (€14m) since 2007.
The spokesman said: "The move to the Sovereign Grant has created a more transparent and scrutinised system, which enables the royal household to allocate funding according to priorities. This has resulted in a more efficient use of public funds."(© Daily Telegraph, London)