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Letters expose schism between UK and Welsh governments over Crown Estate

By Mark Mansfield
Prime Minister Sir Keir Starmer with Wales' First Minister Eluned Morgan (left) and Welsh Secretary Jo Stevens (right) on a visit to RAF Valley on Ynys Môn. Photo Paul Currie/PA Wire

Martin Shipton

YesCymru has highlighted the stark contrast between the UK Government and Welsh Government positions on transferring control of the Crown Estate to Wales, following two letters received just a week apart.

Last week, Welsh Secretary Jo Stevens wrote to the pro-independence group on behalf of Prime Minister Keir Starmer, confirming Westminster’s refusal to transfer the Crown Estate to Wales. In her letter, Ms Stevens argued that such a move would “risk market fragmentation,” cause “complications” over shared sea boundaries, and could result in Wales losing access to investment generated from England. She stated plainly: “This government… does not support the devolution of the Crown Estate in Wales.”

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'Galvanising'

In sharp contrast, a letter received this week from First Minister Eluned Morgan warmly welcomed YesCymru’s campaign, praising its success in “galvanising widespread support” and confirming the Welsh Government’s commitment to securing control of the Crown Estate. She wrote: “It is important that the Welsh Government have the powers to pursue net zero in a way that retains wealth in Wales, and management of Crown Estate assets would greatly contribute to this goal.”

YesCymru Chair Phyl Griffiths said: “These letters reveal exactly where decisions about Wales are really being made – and it’s not in Wales. The Welsh Government understands that control over our natural resources is key to our economic future, but Westminster’s answer is simply ‘no’. This is why our campaign will only intensify until the Crown Estate is transferred to Wales.”

YesCymru has led the national campaign for transferring the Crown Estate to Wales, securing the backing of all 22 Welsh councils and gaining widespread public support.

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'Farce'

YesCymru Director Rob Hughes added: “It’s a farce that YesCymru has to act as a go-between to get clarity on the Crown Estate. Why are the Welsh and UK Governments not talking directly to each other about Wales’ resources? This back-and-forth through us only highlights how little say Wales has in decisions that should be made here at home. Until we have independence, we will remain at the mercy of a system where Westminster holds the power and Wales gets the leftovers.

“This clear clash between Cardiff’s ambitions and Westminster’s control highlights the reality that, under the current system, Wales cannot decide its own future – and underlines why full independence is the only way to ensure decisions about Wales are made in Wales.”

YesCymru went on to produce a table that provides direct comparisons between the responses of Jo Stevens, for the UK Government, and Eluned Morgan, for the Welsh Government, showing Westminster Government’s opposition and the Senedd Government’s support for devolving the Crown Estate to Wales.

Position on Devolution

UK Government – Jo Stevens

Against – “This government… does not support the devolution of the Crown Estate in Wales.”

Welsh Government - Eluned Morgan

For - “Our Programme for Government includes a commitment to pursue the devolution of the Crown Estate… and we continue to make that case.”

Reasoning

UK Government – Jo Stevens

Argues devolution would cause “market fragmentation, complicate existing processes, and delay further development offshore.” Warns Wales would “lose access to Crown Estate investment that comes from its revenues in England” and might see block grant reductions.

Welsh Government - Eluned Morgan

States devolution would “greatly contribute” to achieving net zero and “retain wealth in Wales.” Cites the Independent Commission’s recommendation for devolution and reform.

Tone towards campaign

UK Government – Jo Stevens

Neutral-bordering-negative. Acknowledges letter but offers no endorsement: “I hope this information proves useful to you.”

Welsh Government - Eluned Morgan

Warm and supportive: “We welcome the campaign and its actions to date in galvanising widespread support for devolution across Wales… we do value your contribution to this important issue.”

Framing of current Crown Estate

UK Government – Jo Stevens

Positive view of status quo: “The Crown Estate… will continue to deliver for Wales, particularly in creating well paid green jobs… reducing domestic energy costs.”

Welsh Government - Eluned Morgan

Implies current system is inadequate: stresses that powers over the Crown Estate are “important… to pursue net zero in a way that retains wealth in Wales.”

Future approach

UK Government – Jo Stevens

Work within existing settlement: “…taking maximum advantage… using all available levers within the existing devolution settlement.”

Welsh Government - Eluned Morgan

Work towards devolution: “…while working towards our goal of devolving the Crown Estate to Wales.”

Reference to cooperation

UK Government – Jo Stevens

Suggests the new “Crown Estate Commissioner with special responsibility for Wales” is the main way to reflect Welsh interests.

Welsh Government - Eluned Morgan

Mentions collaboration with the UK Government but in the context of achieving devolution.

Full text of Jo Stevens’ letter to YesCymru:

Dear YesCymru Directors, RE: The Transfer of the Crown Estate to Wales Thank you for your letter of 19 June to the Prime Minister regarding the Crown Estate in Wales.

The Crown Estate has played a significant role in attracting international investment into Wales to support the UK's net zero target and will continue to do so.

In June, The Crown Estate announced a partnership with Equinor and Gwynt Glas to develop two new floating offshore wind projects in the Celtic Sea. It is estimated that this new industry will support over 5,000 new jobs and deliver a £1.4bn boost to the UK economy.

This is hugely significant to Wales and will help to deliver transformational change to areas such as Port Talbot. I am therefore pleased that the Crown Estate is contributing to clean and renewable energy generation in Wales in a number of ways.

This includes investment for Welsh projects to help build the supply chain for the offshore wind sector, as part of £400m of Crown Estate funding to support new infrastructure for offshore wind projects across the UK. Wales will also benefit from the Crown Estate's first commercial leasing round for Floating Offshore Wind, as well as investment in tidal energy development and support for the HyNet carbon capture cluster.

The Crown Estate works closely with the Welsh Government and Natural Resources Wales in support of shared priorities, ensuring that these resources are sustainably managed for the long term. This Government's focus is on taking maximum advantage of the opportunities floating offshore wind presents for Wales, using all available levers within the existing devolution settlement.

The Crown Estate's work will continue to deliver for Wales, particularly in creating wellpaid green jobs, advancing research and development across various sectors while reducing domestic energy costs. This is why I have worked across government to create a Crown Estate Commissioner with special responsibility for Wales for the first

Full text of Eluned Morgan’s letter to Yes Cymru:

Dear Rob, Thank you for your offer to sign your pledge board expressing support for the devolution of the Crown Estate and return of its revenues to Wales.

We welcome the campaign and its actions to date in galvanising widespread support for devolution across Wales.

Our programme for Government includes a commitment to pursue the devolution of the Crown Estate and we continue to make that case. It is important that the Welsh Government have the powers to pursue net zero in a way that retains wealth in Wales, and management of Crown Estate assets would greatly contribute to this goal.

The Independent Commission on the Constitutional Future of Wales has recommended devolution of the Crown Estate to Wales, and that an expert group should be established to ascertain how the devolution settlement between the UK Government and the Welsh Government could be reformed, particularly with regards to energy generation.

Members of the Cabinet as well as myself, and Welsh Government officials have held discussions with their UK Government counterparts on the constitutional reform agenda, including on the devolution of the Crown Estate and the role of a Welsh Commissioner which will be appointed as part of the Crown Estate Act. We look forward to collaborating with the UK Government to ensure we maximise the opportunities and benefits for the people of Wales, while working towards our goal of devolving the Crown Estate to Wales.

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26 comments

Amir

What is the benefit to Wales of having Labour in charge here and over there. Jo Stevens clearly has no regard for the benefit of Wales and I no longer feel her position is tenable. I have no confidence in her ability to fight for what is best for Wales.

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Gareth Cemlyn Jones

So the colonial/imperialist notion of 'we know what's best for you' prevails. The colonial governor has made her views clear! Is there some remote possibility that there may be a strategic handout on the Crown Estates when things go pear shaped for Labour ahead of the 2026 elections?

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David Richards

When it comes down to it the Welsh labour govt is uk labour's poodle and it will do as its told by its labour masters in London.

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Pete

Just shows how little the UK Labour government thinks of the Welsh Labour government. They're embarrassed by them and it's not a surprise. This is an opportunity for PC to come up with a robust business plan as to why it should be devolved, what they would do with the money, big plans, big ideas, global investment etc. I know they're worried that Welsh Labour would simply pinch their ideas (and let's face it, they don't have any of their own) but Rhun needs to be far more specific. It's a huge opportunity and, if we are ever to even consider independence, exactly the sort economy-bolstering stuff we'll need. We can't just go on our hands and knees to Brussels, begging to rejoin the EU.

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Y Cymro

UK Labour and Welsh Office Minister Jo Stevens can make as many lame excuses as they like. But the fact is that they are not only ignoring the will of the democratically elected Welsh Government but the Welsh people when they flatly deny Wales the devolution of its Crown Estate , a right afforded to the Scottish Government in 2017. For Wales gaining powers from those centrists in Whitehall is like tearing out chunks of flesh. Painful. But they will be devolved if we keep up the pressure. It's not if but when. First we need to elect a Plaid Cymru Welsh Government next May to send a powerful message to UK Labour that no longer will our nation's natural resources be exploited by others, or those Wales Labour/Conservative MPs being complicit in our exploitation as a people and nation.

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Unknown

Yes, there is a hopeful reading of this. They have never done anything out of the goodness of their hearts, and yet, we still got things.

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Amir

What hope and what things have been just given to us? If we don't ask, we don't get anything. That won't be a problem normally. We are not beggars. But when they start building on our land and in our waters with zero benefit to us, then I have a problem with that. Unfortunately, Jo Stevens, has no desire to fight for us.

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In reply to Amir

Unknown

That’s not what I said.

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Nia James

So when it comes to governing Cymru, and getting the best for our people, Jo Stevens is simply reiterating the 'London knows best' line, and if you challenge that then you'll upset some people in Westminster.

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Gwyn Hopkins

In her letter to YesCymru confirming the UK Labour Government’s refusal to devolve the Crown Estate to Wales, Jo Stevens offers the pathetic excuse that it would “risk market fragmentation,” cause “complications” over shared sea boundaries, and could result in Wales losing access to investment generated from England. The Labour opposition didn’t declare these objections when the Tory Government devolved the Crown Estate to Scotland in 2019. Her Government’s position stinks of double standards favouring Scotland but detrimental and discriminatory towards Wales.

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Valley girl

We are well within our right to complain to United Nations. Can the Senedd do this?

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smae

uh... no, not really. Wales is not a member of the United Nations directly, it is not an observer of any kind member observer or non member observer. Palestine has more rights to complain to the UN than we do. The UN cannot even arbitrate on this matter. It might be possible to refer this to the Supreme Court but I'm not sure on what basis. These powers are 'reserved' as is Westminster's rights and they can't be forced to devolve them, as far as I can tell the UK government has done nothing wrong constitutionally. So the only thing left open to us really is to vote against Labour in the next general election and instead vote for the party that best represents your views instead.

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Ernie The Smallholder

Remember the Westminster UK system also brought us the Conservatives and Nigel and his fascist Retards UK. They will do everything in their power to remove the democratic wishes of the people of Wales. The Senedd has no choice now, but to declare Wales an independent country (a republic) and relay that to the United Nations general assembly and all concerned. We must stay together with the people of the Ukraine who have also found themselves in a similar position.

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In reply to Ernie The Smallholder

Rob

The UN is not going to recognise Wales as a sovereign state without London's agreement, the same way it won't recognise Catalonia or Basque without Madrid's agreement, or recognise any territory of Ukraine as part of Russia without Kyiv's agreement. For it to do so would violate its own charter regarding the sovereignty of its member states setting a dangerous precedent that no other state particularly Spain or those with separatist movements.would want to see. If you want impose international pressure on London then the way to go about it would be sanctions, trade restrictions or withdrawal from foreign investment by key players such as the US and EU. The UK no longer has the global influence it once had.

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Bryce

This makes the UK sound like a rogue state.

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In reply to Bryce

Peter Cuthbert

In many ways it is! It certainy has a government that ignores the views of its party mebers (See the latest report from Compass) and apes the policies of the much derided market fundamentalist Tory government that preceeded it. The huge elelction result thay got was a clear indication that the Tories approach was not wanted in the UK but, sadly, because of first past the post, the right wing labout party management think that the vote was for them.

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In reply to Peter Cuthbert

Bryce

You're right that it highlights constitutional weakness but under our current system London Labour, who were clearly elected on a massive mandate to deliver growth, have five years to do whatever they want in the name of growth without further recourse to public opinion. This precedent was set by Johnson who used his massive mandate to deliver whatever kind of Brexit he fancied without bothering to ask if people wanted it. Growth means Growth just as Brexit meant Brexit. Because that's the UK's so-called democracy in action. And no-one seems to want to change it.

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Howie

I find it all a contrived argument to try and placate respective audiences. Take the seabed argument if only we could believe either, because on current practice and projects supported and proposed very little of the cash benefits are coming directly to Wales, the Irish Govt, Danish, French and the Chinese communist party govts are the ones receiving the most out of it.

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Peter J

That seems to be the bit lost in the argument. The crown estate income from leasing the sea bed is not a significant income source when compared to money made by RWE, equinor, orsted etc. The largest and only offshore wind farm in Wales currently generates around 9m per year for the crown estat. Hardly a significant sum. And Wales does benefit from income generated by the crown estate holdings in England, which are far more lucrative. Securing the jobs in Port Talbot are far more important than devolving the crown estate.

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Undecided

Yes, absolutely. Jobs far more important than posturing over a lost cause.

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In reply to Undecided

Amir

What industry do you propose will provide these jobs?

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Amir

If it is such a lost cause then why not just give Wales the crown estates? How do propose securing jobs on Port Talbot? With what industry that will magically appear there?

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And

Don't think anyone doubts that it should be devolved. It's the how is the problem. It's all about leverage. It's all about the strength of this movement. We shouldn't need to directly ask for these things - these things should be given to us by the state to slow down our progress. Fact is we don't have progress. We don't have leverage. We don't have a vision for what the Indy movement needs to be. We patronised Mark Drakeford for sending strongly worded letters to Westminster yet we cheer Phyl Griffiths doing it. Fact is. You've either got the edge to push this forward or you don't. Why people who clearly don't have that edge stick around for years on end is beyond me.

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Bryce

The UK government is the unelected Etonian cabal in Whitehall still operating as though they're running a glorious empire. The elected representatives we send soon become their wide-eyed messengers too intimidated by the grandeur of the Palace of Westminster to remember the people they're supposed to be representing. Why else would they nod through tens of billions to fix up that opulent anachronism when they could be funding a cheaper modern replacement and using the cash saved to reduce child poverty in their constituencies.

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Rob

Don't back down from this. We are the poorest country in Western Europe, and alongside that we have the weakest level of political autonomy among the nations of Europe. Holding these two distinctions is not a coincidence. Wales is held back because we are being treated like a second class nation. Would the UK government ever dare prevent Scotland or Northern Ireland from exercising such autonomy? We should demand no more no less, it is highly irrational not to be treated as an equal partner. Labour is the problem, not devolution. Remember, Thatcher once refused to establish a Welsh language channel but eventually she caved in.

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John Ellis

'UK Government – Jo Stevens Against – “This government… does not support the devolution of the Crown Estate in Wales.” Welsh Government – Eluned Morgan For – “Our Programme for Government includes a commitment to pursue the devolution of the Crown Estate… and we continue to make that case.”' Welsh Labour faces elections in less than eight months, and at a time when the Labour government at Westminster is increasingly unpopular and as things stand look likely to become less popular still. Time, therefore, for Labour in Wales to initiate some calculated distancing between the Welsh party and the UK party. If the Senedd elections weren't so imminent, I'd be willing to bet that Welsh Labour would be less disposed to plough its own policy furrow with the current degree of definition!

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UK Labour and Welsh Office Minister Jo Stevens can make as many lame excuses as they like. But the fact is that they are not only ignoring the will of the democratically elected Welsh Government but the Welsh people when they flatly deny Wa...

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