Prince Harry and Meghan Markle will no longer be styled as 'His/Her Royal Highnesses (HRH)', come spring. Queen Elizabeth II announced via a statement by the Buckingham Palace on Saturday that the couple will also have to pay back the 2.3 million pounds spent for the renovation of Frogmore Cottage that was funded by the taxpayers.

The announcement came as Queen Elizabeth II, Prince Charles, Prince William and Prince Harry participated in a crunch summit on Tuesday. The monarch had asked her aides to chalk out an agreement that was beneficial to the Sussexes, the royal family and the taxpayers of Britain.

The 93-year-old royal also told that Harry and Meghan will no longer represent her under the agreement reached by all four royal households. They will continue to support their private patronages.

"Following many months of conversations and more recent discussions, I am pleased that together we have found a constructive and supportive way forward for my grandson and his family. Harry, Meghan and Archie will always be much loved members of my family. I recognise the challenges they have experienced as a result of intense scrutiny over the last two years and support their wish for a more independent life. I want to thank them for all their dedicated work across this country, the Commonwealth and beyond, and am particularly proud of how Meghan has so quickly become one of the family. It is my whole family's hope that today's agreement allows them to start building a happy and peaceful new life," the statement said.

The Palace also released a statement from the Sussexes. "The Duke and Duchess of Sussex are grateful to Her Majesty and the Royal Family for their ongoing support as they embark on the next chapter of their lives. As agreed in this new arrangement, they understand that they are required to step back from Royal duties, including official military appointments. They will no longer receive public funds for Royal duties. With The Queen's blessing, the Sussexes will continue to maintain their private patronages and associations. While they can no longer formally represent The Queen, the Sussexes have made clear that everything they do will continue to uphold the values of Her Majesty," the statement reads.

"The Sussexes will not use their HRH titles as they are no longer working members of the Royal Family. The Duke and Duchess of Sussex have shared their wish to repay Sovereign Grant expenditure for the refurbishment of Frogmore Cottage, which will remain their UK family home," it continues.

However the Palace declined to comment on the details of security arrangements for Harry and Meghan. "There are well established independent processes to determine the need for publicly funded security. This new model will take effect in the Spring of 2020," the statement hinted.

Prince Harry and Meghan Markle
Britain's Prince Harry and Meghan Markle are to step back as 'senior' royals. Photo: POOL / DANIEL LEAL-OLIVAS

Speaking to Hello, a palace source said: "The Queen has made it clear that Frogmore will continue to be the Sussexes' home. They will repay the public expenditure on it and will pay for its upkeep. They will be paying a commercial rent on it."

However, the insider added that details of whether the couple will use the Sussex Royal name is still being worked out. Harry and Meghan will now be styled as Harry, the Duke of Sussex and Meghan, the Duchess of Sussex, respectively. Harry will have to give up his military patronages.

Prince Harry and Meghan shocked the world when they announced they are stepping back as senior royals and intend to work to become financially independent.