Charles Windsor, heir to the position of head of state, has been borrowing money from the Duchy of Cornwall and failing to pay it back, according to a report in The Guardian. The newspaper reported that as much as £1.2m had probably been spent on renovations at one of Mr. Windsor’s houses, extra personal staff and handouts for his wife to be and sons.
Although Windsor is given the income from the Duchy, around £12m a year currently, he is not supposed to have access to its capital. A 1980 act of parliament does allow the capital account to lend to the revenue account, however. It is this loophole that Windsor has taken advantage of to boost his income.
The accounting practice was first brought to public attention by MPs in February, referring to the practice as a “fiddle”. The Windsor family refused to disclose the amount involved until The Guardian forced its hand with a Freedom of Information Act application. As a result the Treasury has acted to reduce the amount that may be borrowed to £600,000 by 2007.