Another item to add to the list of rising expenses faced by Britons: The royal family.

Queen Elizabeth and her family cost Britain £40 million in the past fiscal year, about 66 pence per person and a rise of £2 million, or 5.3 per cent.

Palace officials said a drive to conserve energy at palaces had helped to keep cost rises in check.

The queen used 7.3 per cent less electricity in 2007-08, helped by the introduction of low-energy light bulbs. Water from a borehole in Buckingham Palace was used to cool the wine cellars and water the gardens.

But maintenance, utility bills and travel costs went up in a year in which she made state visits to the US, Uganda, Belgium, France and The Netherlands, had 440 engagements across Britain and entertained 38,000 guests at garden parties.

The report said cuts to the royal property budget had created a backlog of urgent works that would cost £32 million pounds within 10 years, including 16 million pounds to fix the roof at Buckingham Palace in London.

The royal household placed "a strong emphasis on value for money and accountability in the use of public funds", said Sir Alan Reid, keeper of the privy purse.

The anti-monarchy campaign group Republic said the true bill to the taxpayer would be nearer £150 million a year if the cost of police and army security were included. Spokesman Graham Smith said the Queen should receive a fixed salary.

"There is a clear need to reform the royal finances, so we can all be sure they are entirely transparent and accountable," he said. "It is high time the monarchy abided by the same standards of accountability as the rest of government."

The accounts are online at: www.royal.gov.uk/output/page3954.asp