The Queen has cancelled this year's Christmas party for her staff at Buckingham Palace after deciding that it would be inappropriate given the "difficult economic circumstances" facing the country.
The biennial December party for 600 staff members from Buckingham Palace, Windsor Castle and Clarence House, plus partners, costs around £50,000 and is usually paid for out of the queen's private money.
A Palace spokesman said today: "Given the current economic climate, it was thought that it was appropriate for the household to show restraint."
"The Queen is acutely aware of the difficult economic circumstances facing the country."
The move marks the first time in recent history that the Xmas celebration has been shelved.
Hundreds were looking forward to the lavish bash as it is the one time they can mingle with senior Royals.
One member of the royal staff was quoted as saying: "We're all devastated as it's a great night when everyone lets their hair down."
"The royals mix freely with servants - it's normal to see the Queen dancing with a footman or (her husband) Prince Philip waltzing with a maid.
"The champagne flows like water and you feel your hard work has been appreciated. This won't go down well."
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