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Crown Estate Bill [Lords] 2025-02-24

24 February 2025

Lead MP

Llinos Medi

Debate Type

General Debate

Tags

Wales
Other Contributors: 28

At a Glance

Llinos Medi raised concerns about crown estate bill [lords] 2025-02-24 in the House of Commons. A government minister responded. Other MPs also contributed.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Opened the debate
The new clause transfers management of the Crown Estate in Wales to the Welsh Government within two years. This ensures that profits generated from natural resources stay within Wales, addressing historical exploitation and current economic challenges such as child poverty. The value of the Crown Estate has increased significantly over five years, but all profits are transferred to the Treasury rather than benefiting local communities. Scotland's devolution of its Crown Estate in 2017 is cited as a successful precedent for similar implementation in Wales.

Government Response

Wales
Government Response
The Minister acknowledges the concerns raised by MPs and outlines that the Government has made changes to the Bill, including ensuring appropriate protections for seabed disposal. He explains that devolving Crown Estate powers to Wales would disrupt existing investments and delay UK-wide grid connectivity reform. The Minister also highlights potential economic benefits from offshore wind developments and emphasises the importance of maintaining a unified energy market. Mr. Murray outlines that the Government believes the existing structure is best for advancing energy capacity, increasing Crown Estate net profits, and supporting public services in Wales. He also emphasises the collaboration between the Crown Estate and Marine Management Organisation. The minister reassures the House that strong safeguards are already in place to ensure the Crown Estate maintains and enhances its estate, and opposes new clause 5 arguing it undermines flexibility for commercial operations. Also argues against transparency of partnership agreements citing commercial sensitivity. The central aim of the Bill has been to ensure that the Crown Estate has a sustainable future for decades to come. Through these targeted and measured changes to its founding legislation, particularly in respect of its investment and borrowing powers, the Government are building on the Crown Estate’s strong track record of success in creating long-term prosperity for the nation. The measures will unlock more long-term investment, helping to drive growth across the UK.

Shadow Response

None
Shadow Response
The Bill was developed to provide the Crown Estate with broader borrowing powers, aiming to increase revenue and enhance asset value. The Welsh functions of the Crown Estate are not suitable for devolution at present due to licensing complexities in the Celtic Sea that could undermine returns for taxpayers. There is support across the House for the aims of the Bill, which will deliver the modernisation that the Crown Estate needs, and should generate greater returns for the Exchequer. However, we are disappointed that the Government have resisted our proposals for greater transparency and appropriate parliamentary oversight, including on borrowing.
Assessment & feedback
Summary accuracy

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