The Royal yacht Britannia could be kept in service for another 20 years, under new plans for a privately-funded refit, it was confirmed yesterday. The Minister without Portfolio, Mr Peter Mandelson, said the idea was a favourite option with ministers and he was "quite hopeful".
But the Ministry of Defence insisted it was "one tentative option among a number of others".
The new plan surfaced in newspaper reports days before Britannia departs on what had been billed as a last major voyage before being decommissioned in December - the queen's annual cruise to Scotland via the Western Isles, on her way to Balmoral.
Under the new plans, the queen and her family would pay to use the vessel in future under a "timeshare" arrangement said to be favoured by the Chancellor, Mr Gordon Brown.
Businesses would also rent the ship - which would continue to be operated by the Royal Navy - for periods of up to 70 days.