LONDON (Reuters) - Buckingham Palace has dismissed as "hopelessly speculative" a newspaper report that the Queen is considering withdrawing regal privileges and palace homes from minor royals.
The News of the World tabloid, in a front-page report headlined "Bloodbath", said in a move to update the monarchy, the queen was considering taking away privileges like police protection and allowances for minor royals.
It said only the queen, her husband Prince Philip, heir-to-the-throne Prince Charles, his sister Princess Anne, the Queen Mother and the queen's sister Princess Margaret would be untouched by the plans.
Many of the queen's other relatives receive allowances and occupy palaces in central London and elsewhere for which they either pay nothing or a nominal rent far below the price the property would bring on the open market.
"It will create a two-tier royal family -- those who represent Britain and have all the privileges that go with their regal status, and those who want to continue with business careers but must pack up their belongings, move out of their palace homes and give up the lavish perks that go with them," the newspaper said.
A spokesman for Buckingham Palace said a review of the duties of the royal family was still under way and there had been no decisions.
"This story is hopelessly speculative," the spokesman told Reuters.
The review was ordered after a row broke out over the wife of Prince Edward, the queen's youngest son. Sophie Rhys-Jones, as she is known professionally, was forced to resign as head of her public relations firm over allegations that she used her royal status to further the company's business dealings.