Read Online The Firm: The Troubled Life of the House of Windsor by Penny Junor - Free Book Online

Janvrin. I first met him in April 2003, shortly after his move to St James’s Palace. He was impeccably mannered, charm itself and as cool as a glacier; I was happy then to believe what people said about him. But I have changed my view; I had known and liked Mark Bolland – and Peat was making a break with the past and the methods of the past. I was probably seen as part of that and I think he was expecting hostility. He was in a new job, he had the reputation of being a ruthless accountant, and the Prince’s staff, members of which had always enjoyed a more luxurious life than their counterparts across the Mall, were extremely wary. First impressions were misleading. Peat is far from glacial and far from grand; he makes his own calls and answers his own telephone (asopposed to routing calls through his secretary, as many at his level do); he gets around London on a bicycle; and he has a real life outside the Palace with a wife, three children and a farm in Berkshire. Given what he has achieved over nearly twenty years, he is remarkably self-effacing.
    During the period of his secondment, in 1991, Peat began working on new tax arrangements for the Queen. He had decided not to mention tax in his report, but, having looked at her finances from top to bottom during its preparation, he felt strongly that the Queen could and should be paying income tax. He knew it was a matter that needed careful handling; the Queen had never paid tax, but that was not a tradition that went back generations. Queen Victoria and Edward VII had both paid tax, George V and George VI had paid tax on investment revenue, and complete exemption only began at the start of the present Queen’s reign in 1952. However, the feeling in the household had always been that the Queen could not afford to pay tax and maintain her current lifestyle, given her outgoings: she was paying for her children and other members of the Royal Family, paying for the upkeep of Balmoral and there was the small matter of horseracing. There was also a fear that any change would involve time-consuming legislation.
    But the tax issue was inflicting grave damage and David Airlie was in full agreement with Peat. The monarchy was coming under heavy fire from the media on a number of counts, but the underlying malaise was its expense. The Waleses were at war with one another, Prince Andrew had married Sarah Ferguson, who was proving to be too much the girl next door and had an appetite for parties and holidays, and Prince Edward had shown himself to be arrogant and petulant. People were beginning to question why the taxpayer should be paying for the Royal Family to live the life of Reillywhen they were patently no better than anyone else. The Palace had always been very coy about how much the Queen was worth, and in the absence of hard information journalists speculated. She was consistently reported to be worth billions; in 1989 the American business magazine Fortune placed it at £7 billion, making her the world’s richest woman and the world’s fourth richest individual. It was wildly inaccurate, but in PR terms it didn’t matter. While the rest of the country paid tax on their comparatively meagre incomes, she was exempt; and the Prime Minister’s announcement in 1990 that her income from the Civil List was to be increased by more than 50 per cent as part of the ten-year deal simply added insult to injury.
    Peat’s first challenge was to convince the household that the Queen could in fact afford to pay tax and still maintain a lifestyle commensurate with her position as sovereign, and then to convince the Treasury and the Inland Revenue that this could be done without a change in the law. Once he had Airlie’s support, neither challenge proved insurmountable; and in February 1992 he set up a small working group with representatives from both the Treasury and the Inland Revenue to work out the detail. The plan was to announce the scheme in April 1993.
    On 20 November 1992,