The Crown Estate Bill
- This Bill will modernise The Crown Estate by removing
outdated restrictions on its activities, widening its investment
powers and giving it the powers to borrow in order to invest at a
faster pace.
- These measures - which conform to our fiscal rules - will
unlock significant investment in public infrastructure for the
benefit of the nation. That includes vital marine investment
needed to accelerate and quadruple offshore wind capacity by 2030
as part of the Government's clean power mission.
- Together these reforms will ensure the successful future of
The Crown Estate business, help meet our Clean Energy Superpower
mission and deliver long-term financial returns to the UK
taxpayer.
What does the Bill do?
- The Crown Estate plays a critical role in maintaining and
improving public infrastructure of England, Wales and Northern
Ireland and generates a financial return for the Government worth
over £3 billion in the last decade. This money helps fund vital
public services.
- One of The Crown Estate's most important roles is as the
owner and steward of the seabed of England and Wales. In this
role, The Crown Estate develops, prepares and leases out plots of
seabed to offshore wind and other developers (for example, those
looking to build carbon capture infrastructure). The pace at
which it does this determines how quickly we can meet our Clean
Energy Superpower mission.
- The Crown Estate Bill will modernise The Crown Estate so that
it can manage our public assets more effectively, by:
-
granting The Crown Estate the power to
borrow. Currently The Crown Estate cannot use its
large cash reserves to invest because it needs these to hold
these against the prospect of future financial losses.
Enabling it to borrow from the Exchequer will free up these
reserves to be invested in new projects. This is particularly
critical for accelerating the pace of our offshore wind
deployment.
-
widening The Crown Estate's existing investment
powers, to enable investment in activities which
complement its strategy and support wider government policy
objectives, such as digital technologies to support offshore
energy development and port infrastructure.
-
changing the source of funding for expenses and
salaries of the Commissioners from votes to the
return made by The Crown Estate. This will provide
legislative simplification, saving parliamentary time by
removing the need for these to be done through the
Parliamentary Supply Estimates Process.
-
increasing the maximum number of
Commissioners on The Crown Estate Board from 8 to 12
- bringing The Crown Estate in line with modern corporate
governance best practice.
Territorial extent and application
- The Bill will extend and apply to England and Wales and
Northern Ireland.
Key facts
- The Crown Estate is a multi-billion-pound business which
returns its profits to the Government to help fund public
services. It is an independent business, tasked with managing a
portfolio of land and property owned by the Sovereign.
- The Crown Estate operates on a wholly commercial basis and
has a statutory duty to maintain and enhance the value of its
portfolio. Since 1760, the profits of The Crown Estate have been
surrendered to the Exchequer by the Monarch. In return, The King
receives a fixed payment in the form of the Sovereign Grant. Over
the last decade, The Crown Estate has contributed over £3 billion
to the Exchequer.
- The Crown Estate's portfolio is diverse covering a range of
rural, marine, London and regional holdings. As owner of the
seabed, it plays a critical role in the delivery of offshore
energy.
- Granting the Crown Estate borrowing powers will allow it to
bring forward 20-30 gigawatt of new offshore wind seabed leases
by 2030, boosting offshore wind capacity off England and Wales's
6,500 miles of coastline.
- The modernisation of The Crown Estate's property portfolio,
as well as urban regeneration, will help to further the
Government's housebuilding priority.
