It seems not even the Queen is immune to Chancellor George Osborne's spending cuts.
From 2013 the Royal Household's spending will be reduced by 14 percent, amounting to around £6 million.
The Queen will be forced to cut back on travel and the upkeep of the palaces, in the biggest change to royal funding for 250 years.
Senior royal sources said: "These are genuine cuts but we are not moaning or complaining about the settlement."
"Everything will have to be looked at right down to the cost of cakes for the garden parties."
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