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Crown Estate Bill [Lords] 2025-01-07

07 January 2025

Lead MP

Darren Jones

Debate Type

General Debate

Tags

TaxationClimate
Other Contributors: 34

At a Glance

Darren Jones raised concerns about crown estate bill [lords] 2025-01-07 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
Commends the hon. Friend for his ten-minute rule Bill and explains that the Crown Estate Bill aims to modernize legislation governing the Crown Estate, allowing it more freedom to compete in the marketplace and invest sustainably. The Bill broadens investment opportunities, enables borrowing with Treasury consent, and includes governance reforms to ensure sustainable development goals are met.

Government Response

TaxationClimate
Government Response
Responds to queries about extending provisions to Scotland's Crown Estate, conflict of interest regarding GB Energy investment, prioritization over fishing industry interests, and Clause 3. Emphasises that borrowing powers will require Treasury consent and ensure value for money. The Crown Estate Bill aims to clarify and broaden the commissioners’ powers, allowing for borrowing with Treasury consent, modernising governance by increasing board members from eight to twelve, removing limitations on investment powers, requiring impact assessments on sustainable development, and enabling the Crown Estate to engage in capital-intensive projects for energy transition. The bill aims to unlock more long-term investment, creating high-quality jobs and driving growth across the UK. Purpose of the Bill is to bring Crown Estate legislation into the 21st century by enhancing its powers and governance, enabling it to further invest in the energy transition and deliver returns to the public purse. Borrowing powers will be from the Treasury or with Treasury consent, consistent with fiscal rules. Commissioner pre-appointment scrutiny follows established processes. Chief executive pay is at the lower end of private sector peer groups, performance-based. Partnership agreement details are commercially sensitive but will be published in annual reports. Amendment on seabed sale may be needed and will be considered.

Shadow Response

None
Shadow Response
Supports the Bill’s aims but raises concerns about lack of parliamentary oversight on borrowing levels and governance. Questions the effectiveness of relying solely on a memorandum of understanding for borrowing limits, proposing instead to have a cap in legislation that could be swiftly amended through a statutory instrument. The Crown Estate is neither the property of the Government nor part of the sovereign’s private estate. Its core purpose is to maintain and enhance the value of the estate and the income derived from it. Greater transparency about the partnership with GB Energy is needed, including publishing the partnership agreement before Committee stage. Concerns exist regarding conflicts and risks around investment decisions and returns for taxpayers. Expressed concern about environmental impacts of offshore wind development, questioning the potential fragmentation of renewable energy markets if further devolution occurs.
Assessment & feedback
Summary accuracy

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