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The Queen- 'We respect and understand their wish to live a more independent life.'
Video / ITV
The long-awaited showdown between the Queen, Prince Charles, Prince William and Prince Harry has finally taken place – bringing with it an uncharacteristic display of emotion from the traditionally stiff-upper-lipped reigning monarch.
In her personal statement released shortly after the meeting wrapped, the Queen admitted she'd hoped Harry and Meghanwould stay on as full-time royals but was "entirely supportive" of their decision to quit and spend a significant chunk of their year living abroad, most likely in Canada.
"Today my family had very constructive discussions on the future of my grandson and his family," she said.
"My family and I are entirely supportive of Harry and Meghan's desire to create a new life as a young family. Although we would have preferred them to remain full-time working members of the royal family, we respect and understand their wish to live a more independent life as a family while remaining a valued part of my family."
There was plenty to talk about in that statement – but it also included some glaring omissions. Namely, who they had decided was going to pay for Harry and Meghan's upkeep during this period of "transition" – and who was going to foot their ongoing (and massive) security bill, news.com.au reports.
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Queen Elizabeth II with Meghan the Duchess of Sussex and Prince Harry watch a flypast of Royal Air Force aircraft pass over Buckingham Palace. Photo / AP
Buckingham Palace, in conjunction with the Sussex household, is expected to release a statement with further details in the coming days.
Here are the huge questions it'll have to answer:
FUNDING
The biggest question to arise in the aftermath of the Sussex announcement is about general funding for the high-profile couple. There's no precedent to map out the path for their future payments from the monarchy – and there's also confusion over how their plan to "work toward becoming financially independent" would actually work.
It was certainly an item at the top of the agenda during Monday's high-stakes meeting, but the final financial plan is yet to be revealed.
In her statement, the Queen said while discussions were still ongoing, she had agreed to a "period of transition" in which the Sussexes would spend time in Canada and the UK.
"Harry and Meghan have made clear that they do not want to be reliant on public funds in their new lives," she said.
Britain's Queen Elizabeth II arrives to attend a morning church service at St Mary Magdalene Church in Sandringham. Photo / AP
"It has therefore been agreed that there will be a period of transition in which the Sussexes will spend time in Canada and the UK."
It's likely to mean an interim funding plan involving the Duchy of Cornwall purse, with a view to reduce that stream of income over time as the couple become self-sufficient.
SECURITY
One of the major discussions has been around how Harry and Meghan would extricate themselves from public funding in order to be "financially independent", as it's been widely reported that the couple is requesting taxpayers continue to foot their estimated $1.89 million annual security bill.
In the past, it's been covered as compensation for their fulfilling duties as "senior" royals, but given their unprecedented proposal to effectively work only part time, their protection entitlements are now completely up in the air.
According to The Evening Standard, Canadian Prime Minister Justin Trudeau has offered to pick up around half of the annual security cost for the family.
He "agreed taxpayers in his country should pick up the huge bill for the couple's around-the-clock protection" while they are in the country.
"Trudeau has privately assured the Queen that Harry, Meghan and Archie's safety will not be jeopardised while they reside there," the publication reports.
Prince William, left, and Prince Harry arrive for an event at the memorial garden in Kensington Palace, London. Photo / AP
However, Canadian Finance Minister Bill Morneau has since hosed down the report.
"No, we haven't spent any time thinking about this issue," he told CBC reporters.
"We obviously are always looking to make sure, as a member of the Commonwealth, we play a role. We have not had any discussions on that subject at this time."
Last week, Harry and Meghan launched their own personal website and outlined their proposal for future funding at the same time as they dropped the bombshell news that they would "step back" from the royal frontline.
However, as SussexRoyal.com hadn't actually been approved by the Queen at the time, it was just that – a proposal.
The paragraph on their website read: "The provision of armed security by The Metropolitan Police is mandated by the Home Office, a ministerial department of Her Majesty's Government, responsible for security and law & order. As stated on gov.uk, 'No breakdown of security costs is available as disclosure of such information could compromise the integrity of these arrangements and affect the security of the individuals protected. It is long established policy not to comment upon the protective security arrangements and their related costs for members of the Royal Family or their residences'."
Another issue to be resolved is whether or not the Duke and Duchess of Sussex will retain their HRH status.
Duke and Duchess of Sussex, Meghan Markle and Prince Harry, leave Windsor Castle after their wedding in Windsor. Photo / AP
While it's unlikely their family will strip them of their titles, ITV news anchor Tom Bradby, who is also a friend of the couple, admitted they were "philosophical" about "the prospect of losing their titles and becoming, in the end, entirely self-funded".
Certainly, the Queen's decision to omit their official titles and instead twice refer to them simply as "Harry and Meghan" in her statement on Monday evening sparked plenty of speculation that their days as HRHs are limited. However, it's a decision that is yet to be formally announced.
TAX
With Harry and Meghan eyeing off commercial deals and business ventures in the future, the issue of how much tax they will have to pay is something else to be worked out.
As an American citizen, Meghan already pays tax in the US on any global earnings. If the couple base themselves part time in Canada, as is widely reported, they may have to adhere to the nation's law that requires anyone spending 183 days or more there to pay income tax on their global earnings.
The UK allows just 90 days before the tax rules apply.
A big sticking point with the frustrated British public is the £2.4 million ($A4.54 million) of taxpayers' money used to renovate Frogmore Cottage at Windsor after Harry and Meghan made the "full-time" move from Kensington Palace last year. Just months later, and they've announced it'll now only serve as their occasional UK pad.
FUTURE ROYAL DUTIES
Pedestrians walk the Long Walk in front of Windsor Castle, near the Frogmore Cottage home of Harry and Meghan in Windsor. Photo / AP
According to The Telegraph, Sir Mark Sedwill, the head of the British Civil Service, has drafted a plan that would offer Harry and Meghan the opportunity to take on a high-profile Commonwealth role, whereby they could live in Canada and undertake a limited number of official trips each year.
It's an ambitious plan and, as a source told the publication, the concern among aides is that this unprecedented blend of charitable royal ventures and commercial plans would be "very difficult to pull off".
Royal aides are reportedly now working overtime to lock in all the logistics of the Sussexes' exit plan, with the Queen explaining in her statement that she's requested the final outcome to be delivered ASAP.
"These are complex matters for my family to resolve, and there is some more work to be done, but I have asked for final decisions to be reached in the coming days," she said.
