The Queen's treasurer has been forced to back track over Buckingham Palace claims that the SNP Government could slash its contribution to the Monarchy by up to £1.5 million.
Sir Alan Reid, Keeper of the Privy Purse, said that a briefing on royal accounts was "never intended to be a criticism of Scotland or of the First Minister."
It follows widespread reporting that a royal source claimed the Scottish Government could cut its contribution to the British monarchy by more than £1 million if plans for further devolution go ahead.
It follows widespread reporting that a royal source claimed the Scottish Government could cut its contribution to the British monarchy by more than £1 million if plans for further devolution go ahead.
Palace sources had claimed ministers in Edinburgh had backed out of a deal to continue contributing a share of Crown Estate income to the Royals. It was strongly denied by Nicola Sturgeon after a series of newspapers reported the story.
Sir Alan, who is responsible for the financial management of the Royal Family, moved to clear up the confusion, saying there had been no intention of criticising Scotland or making the suggestion that Edinburgh had moved to cut funding.
He said: "Yesterday's media briefing on the Sovereign Grant report 2014-15 was intended to highlight some of the issues that may arise when the first review of the Sovereign Grant begins in April next year.
"The comments and observations were about a principle and never intended to be a criticism of Scotland or of the First Minister or to suggest that the First Minister had cast doubt on the continued funding of the Monarchy.
"The principle is about what happens if profits from certain Crown Estate assets, such as those in Scotland, are not paid to the Treasury and the impact that may have on the calculation of the Sovereign Grant in future years. This question will form part of next year's review.
"As we made clear at the briefing, Scotland contributes in many ways to the Treasury's consolidated fund - out of which the Sovereign Grant is paid. We said explicitly that to imply Scotland would not pay for the Monarchy was simply wrong and we accept unreservedly the assurances of the Scottish Government that the Sovereign Grant will not be cut as a result of devolution of the Crown Estate."
First Minister Nicola Sturgeon had earlier strenuously denied the claim.
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