Case No. FD20F00034-and-FD19P00380

86. I have already made the point that I have no counter-evidence to the budget produced by HRH. I have decided that I should approach the budget that she has provided on a generous basis throughout the minority of the children. It is far better to be safe rather than sorry, although I accept entirely that this budget is far higher than it was at the start of the case. In one sense, HH has brought this upon himself following the findings as to the attempt to purchase Parkwood and the hacking judgment. I have had some concern as to the figure for additional security services from Company X as it is such a large figure with no information to support exactly what this company is going to be doing. Nevertheless, the hacking findings mean that HRH is entitled to all the cyber protection she can get at this stage. I have therefore allowed that item in full. Indeed, I have allowed every item in full with three exceptions. The first is the figure for severance costs. I simply cannot believe that it is necessary to spend the best part of £500,000 per annum on this item. I have not been given a breakdown of what has actually been spent to date, other than that there have been payments but the figure has been reduced significantly. I consider the correct way to deal with this is by way of tighter contracts and, if necessary, injunctions but I have allowed a figure of £150,000 per annum which seems more than sufficient to cover this aspect. Second, I have reduced the figure for temporary contractor costs from £197,750 to £125,000. This sum did not feature at all in the previous schedule, which says that it was included in Consultancy fees, although Consultancy fees have not reduced from the sum of £865,300. I recognise that Covid-19 will have increased the need for temporary contractors and the spending should not, therefore, continue at the same rate. I consider my figure to be entirely fair in consequence. Finally, I have been very troubled by the figure for replacement of vehicles at £1,175,000 per annum. I do accept the need for armoured vehicles, although I note that sensible budgeting enabled three vehicles to be purchased this summer for the price of two by buying two vehicles that were two years old. I accept Mr Dyer’s submission that these vehicles are unlikely to do as much mileage as those that might be protecting say a Head of State. It follows that I cannot see the need for them all to be replaced every two years. I am also not persuaded that there needs to be such vehicles. I accept that there should be vehicles for use in the UK but I would have thought that sensible forward planning would enable these vehicles to be used for the foreign trips as well. I recognise that we have had lockdowns but, until now, there have not been anything like such vehicles and I have not been told that this has caused a significant problem. All in all, I consider a fair budget is half of that claimed, namely £587,500. I attach a simple spreadsheet setting out these figures at Schedule B. It can be seen that the total budget is £10,988,228 which I shall round up to £11 million. I am quite clear that this is an appropriate budget for HRH and the two children going forward. 87. I am not prepared to increase this budget either for the possibility that the children are at boarding school or for when they attend University. The budget is, in my view, a generous one at £11 million and the family will just have to work within the figures. In this regard, I consider it is safe to say that increased expenditure in one area is likely to lead to a reduction elsewhere. I now turn to the position going forward once the children have completed full-time education. It is absolutely clear to me that I cannot capitalise security budgets for them after this time for a significant number of very important reasons. The most obvious is that I have absolutely no idea of the level of threat, if any, that they will face. I have already made the point that they may become reconciled with their father, although I consider this possibility does not affect the provision for their security during their minority given the very serious findings made. I have also made the point that their father may have passed away. It is impossible to say what threat they may face from their siblings or anyone else ruling Dubai after he has gone. Moreover, Mr Dyer’s points about capitalising the costs of purchasing armoured vehicles and transporting them around the world when the children are in their eighties are very well made. By eliminating this part of the claim, I am not doing any injustice at all. The issue can be dealt with in the Schedule 1 proceedings by applying to extend the secured periodical payments order I intend to make. This eliminates the possibility of huge injustice in my fixing what would be a very large capital sum now, whilst ensuring that the children can still be protected if needed. 88. HRH, however, falls into an entirely different category although I accept that her own personal security needs will be very different once the children are independent. Whilst it could be said that two-thirds of the budget will disappear at that point, I consider that to be too simplistic. I do, however, accept that she will not need, let alone, armoured vehicles for her own protection. Moreover, I consider I have been generous in allowing in full the ongoing costs of Company X. It may be that this expenditure would not be necessary at all at that point but, even if some such spending is appropriate, it certainly will not need to be at the level currently provided for. I remind myself that, at the beginning of this case, admittedly before the attempted acquisition of Parkwood and the hacking had emerged, the original order made by the President was in the sum of £355,000 per month. Although that figure was then increased to £445,000 and then £488,000 per month, it is still far lower than I have allowed. It is quite clear to me that these figures were insufficient, although I was told that Director 1 had worked within these budgets, other than in relation to the costs of Company X. Indeed, if I needed any support for my view that the figures were too low, it is to be found in the fact that HH is now offering £6,200,000 per annum, which equates to over £500,000 per month. I realise that my conclusion is very much a broad brush but I am clear that it is the only way to approach this issue. I am of the view that HRH should have a total budget of exactly one-half once the children are independent, giving HRH a security budget thereafter of £5,500,000 per annum for the rest of her life. It might have been said that it should have been 1/3 rd but I consider this ignores two important elements. The first is that there are certain costs that will continue even when the children are independent. Second, HRH will need to provide some security for her own holidays, which is not currently included within this budget. Overall, I am clear that she will be able to keep herself safe with such a budget. It will, however, be entirely up to her how she husbands her resources. If she wishes to spend slightly more in the early years, she will have less for her old age but that will be something that she can control without any concern that HH is looking over her shoulder in this regard. I must then consider, for capitalisation purposes, the duration of the award. I am clear that Jalila should have four years for tertiary education, which will end in 2030 when she is aged 23. I apply the same to Zayed, so his order will end at the end of 2034, just before his 23 rd birthday. The order will therefore be capitalised on the basis that the figure of £11 million per annum continues until the end of 2030, whereupon it will reduce to £8,250,000 per annum, before reducing to £5,500,000 per annum at the end of 2034. 89. I have already made the point that I am going to perform a standard Duxbury calculation without any adjustment to the ordinary income tax and capital gains tax assumptions. I obviously ascribe no income to HRH as anything that she earns will be used for her own personal expenditure. Equally, I do not include any capital receipts because, again, any money will have to cover HRH’s own requirements. The resulting Duxbury calculation is for a lump sum of £209,542,372, which I round up to £210 million. In addition, there is the lump sum that I have calculated pursuant to all the other headings, amounting to a total of £41,302,913, which I round up to £41,500,000, making a total capital award of £251,500,000 payable within three months as per HH’s concession.