Scotland 'could cut royal funding by £1.5m under devolution plans'

Scotland could slash its contribution to the British royal family by up to £1.5 million under plans for further devolution, it has been claimed.

A royal source has reportedly said the changes could mean that any profits from the Crown Estate in Scotland are kept by the Scottish Parliament, rather than the UK Parliament, meaning a cut of between £1m and £1.5m to the Sovereign Grant.

Speaking to the Press Association, he claimed it meant there would a drop "in real terms" in assets from April 1, 2016.

Both the UK and Scottish governments have denied that devolution would have any negative impact on the funding of the monarchy.

A spokesman for the UK Treasury said under the Sovereign Grant Act, the grant could not be reduced, meaning Scottish taxpayers would continue to fund their "full and fair share".

A Scottish government spokesman added: "There would be no change in Scotland's contribution to the Sovereign Grant through general taxation."

It comes as the annual royal statement of finances revealed the monarchy cost the taxpayer £35.7m in 2014/15 - the same as the year before, and the equivalent of 56p per person in the UK.