London - Plans for a royal yacht refit or replacement have been jettisoned after Queen Elizabeth and the British government agreed they could no longer justify Britannia. A government source said early today that the long-running saga to save the ship or fund a replacement was over. It is also clear that the move is one consequence - following the death of Diana, Princess of Wales - of the queen's acceptance that, for a modern royal family, a royal yacht is an anachronism.
One source said that, after extensive consultations, the treasury could not justify the £12 million annual running costs - even with some private sector funding - for a refitted Britannia or a replacement vessel. With Chancellor Gordon Brown, taking a tough stance on public spending, even that relatively modest sum was not one he was keen to take from the exchequer.