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Opinion

The Crown Estate: A constitutional crisis looms

By Stephen Price
King Charles III delivers a speech beside Queen Camilla during the State Opening of Parliament .Photo Leon Neal/PA Wire

Steve Wilson

A campaign has been growing in Wales to devolve the Crown Estate ever since Scotland took control over the assets of their Crown Estate back in 2017.

As the push towards energy from renewables has grown, so has the value of the Crown Estate in Wales. Extraordinarily so.

Take a look at the rolling hills of Cymru. The growing number of wind farms has a striking visual impact and powerfully outlines the growth in this industry.

However, more and more people want to know why this new industrial revolution is just like the old one, where the people of Wales have no ownership or derive little benefit.

The Welsh electorate have often been accused of lacking engagement in politics, however, the issue of extraction of profits from our natural resources is an ever present and emotive one amongst the Welsh community, and so it should be.

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Campaign

In February 2024, a ‘Devolve the Crown Estate in Wales’ campaign was launched by a partnership of campaigners.

Siarter Cartrefi, Cymdeithas Yr Iaith,Yes Cymru, Melin Trafod and others worked collaboratively to run the online launch event supported by Liz Saville Roberts Plaid Cymru MP and the former Labour MP Beth Winter.

Michael Sheen. Image: National Theatre / YouTube

Michael Sheen and Jerome Flynn supported with video messages. Over two hundred signed up and a working group was created.

This group agreed that this should be a single-issue campaign: to devolve the Crown Estate and direct the proceeds to a ‘Sovereign Wealth Fund for Community Benefit’.

One of the initiatives was to lobby our local authorities to support NOMs to devolve the Crown Estate. This would make the public mandate on the issue visible, incontrovertible.

A map posted by Yes Cymru graphically shows the growing support from local authorities. Seven authorities have already voted in support of devolution of the Crown Estate.

Five others will be voting on it in the new year. The campaign is growing. Welsh voices are coalescing around this issue.

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Democracy

Whilst Devolving the Crown Estate campaign may have started as a single-issue it is clear that another matter is fundamentally bound in with this cause, and that is democracy.

The matter of the devolution of the Crown Estate has been described by detractors as something for which ‘there is little appetite in Wales’. Wrong.

The Welsh Government has a clear position in favour of this. Thousands have signed petitions; a “YouGov poll” in 2023 showed a majority of people were in support of this. Labour, the Greens, Liberal Democrats and Plaid Cymru all support this.

It turns out that there is quite an appetite for ownership. For ownership of the crown estate, and, as it turns out, for ownership of energy too. So why the gas-lighting?

Westminster has taken a firm position on this issue. Their response to the Welsh Government is to deny the devolution of the Crown Estate.

They have their rationale, which crucially, does not acknowledge the mandate in Wales.

Carmen Smith - Baroness Smith of Llanfaes

In July this year Baroness Carmen Smith asked Lord Livermore: "What discussions they have had with the Welsh Government about Devolving The Crown Estate?"

Lord Livermore replied: "The UK has had no discussions with the Welsh Government on Devolving the Crown Estate".

Interestingly at a public event in north Pembrokeshire in November, Mark Drakeford was asked about Lord Livermore’s response, Drakeford was clear that Lord Livermore was mistaken on this point and that there had been discussions. Confusing.

Lord Livermore also said: “Devolving the Crown Estate to Wales would most likely require the creation of a new entity to take on the role of the Crown Estate in Wales. This by definition would not benefit from the Crown Estate’s current substantial capability, capital and systems abilities.

"This would indeed further fragment the UK energy market by adding an additional entity and, as a consequence, it would risk damaging international investor confidence in UK renewables and disrupting the National Energy System Operator’s grid connectivity reform, which is taking a whole-systems approach to the planning of generation and network infrastructure."

Imperial hangover

Scotland has managed their Crown Estate assets very well indeed, what makes us in Wales less able to do the same?

This may all seem like procedural detail - navigation of a clumsy out of date system with all its ‘eccentric but benign idiosyncrasies’ - don't believe it.

The crown estate issue exposes the British State’s default when it comes to Wales. Its prerogative to keep a grip on Wales and its resources, to baulk at the slow but growing agency with which the Welsh are building their own self confidence and a desire for ownership and benefit from our natural resources.

When it comes to Wales, the so-called mother of all parliaments has no intention of addressing its imperial hangover, its grip on Cymru.

Energy, the devolution of the Crown Estate, is not just about logistics; the ownership of our natural resources is a moral imperative.

King Charles III reads the King's Speech in the House of Lords Chamber during the State Opening of Parliament in the House of Lords at the Palace of Westminster in London. Image: Henry Nicholls/PA Wire

Whilst a third of children in Wales are growing up in poverty, with cash-strapped local authorities buckling under economic strain, money from our Crown Estate is extracted from Wales to Westminster and the Royal Family: yes, the King has his fingers firmly in the extractive pie too. Westminster must be persuaded that this is not ok.

The gist of the Westminster position is that they alone can manage the income from Welsh natural resources.

Nationhood

Lord Hain told the House of Lords: “Welsh Labour’s case is that devolving the Crown Estate is vital so that profits from leasing land for energy projects can be retained in Wales as they are in Scotland.’

Directing the profits from renewables to support Welsh communities is the most ethical and efficient way to manage and invest that money.

It is also the most democratic thing to do.

However, many fear it may well end up devolved, but only once its riches have been plundered.

The mandate in Wales is very clear, yet Westminster says no.

The democratic vacuum this creates is profound and for all to see.

The Welsh government needs to decide whether our nationhood is notional or real and, if real, they must take an urgent stand on this.

This deficit must be addressed and the strongest legal action taken to assert and implement our national mandate as soon as possible.

The disquiet and heat around this issue is morphing very steadily into a constitutional one.

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20 comments

John

Does anyone have an updated figure on how much money the crown estate generates from assets based in Wales? The last figure I saw was £8.7m in 2021, which is quite small in the grand scheme of public funding. I’m sure that number has gone up since then, but the bulk of the Crown estate revenue comes from assets in London or the east coast of England. If the number hasn’t gone up significantly, then Wales actually would lose funding if this was devolved?!

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Ernie The Smallholder

That is not the case as Wales has not even began leasing its offshore resources for wind and tidal projects. This is going to be big for Wales and it is going to turn us into a rich country, just like Norway. The UK does not want to let this happen because it will lead to Wales having self confidence and be just like Norway: Rich and Independent !

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John

I want to hope that you’re right! but this won’t be close to Norwegian levels of wealth. Last year they got £50 billion. Gwynt y mor generates around £4-5mn per year for the crown estate. But if you look at round four and around five offshore, Welsh sites are absent. Factories and infrastructure are all on the East Coast. Mona wind farm (decades away) is outside crown estate land

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Rob Pountney

Yes, I found that figure too, but, in 2020 Welsh crown estate assets were valued at 49 million, by 2022 it was over 600 million (slightly more than Scotland), the crown estate as a whole made a profit of 442 million in 22/23, which by 23/24 became over 1,100 million... As far as I know this has mostly to do with offshore wind (according to the link posted I am correct in this), just found a report on the FOI request on the crown estate in 2022, the figures are not the same as those quoted above (presumably also from a UK government source), what IS very interesting is the the UK government is 'unable' to give a breakdown of profits made in Wales, I'm also unable to find definitive figures for Scotland, however, Scotland Has made 750 million on offshore licensing (10,000 per km2 for 10 years, rental will be paid on top of this based on production levels, apparently this was much cheaper than in England, and this has caused a bit of a ruckus)... Scotland seems to have done handsomely out of its control of crown estate land, I did look at the most recent UK government funding round for Scotland and Wales, there was absolutely no evidence that funds were being held back to compensate for crown estate income, quite the reverse in fact, the Scottish budget increase was 3.5 times bigger than that in Wales (rather than the double Barnett would indicate), where you would expect it to be less than double... My conclusion is that we are unable to make any accurate estimations of income, and, that this is no accident, Occam's razor therefore indicates to us that the sums must be substantial, because if they were miserly and largely irrelevant you can bet your bottom dollar that they'd be plastered all over the media on a daily basis... https://nation.cymru/news/foi-request-reveals-staggering-breakdown-of-crown-estate-assets-in-wales/

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John

All good points. But any comparison to Scotland and England is really not suitable. The scale of the wind farms, and shear number is vastly greater than what is going through licensing in Wales. Unfortunately, the east coast of the UK is now where most offshore wind farms will be located, for a number of geographic and logistical reasons. That’s not ruling out wales completely, but the offshore wind farms currently being planned here are mostly outside Crown estate territory (will they even get payments for that?) and/or reliant upon floating turbines becoming commercially viable in deeper seas. I don’t think we know how the CE assets were valued. But worth adding that the crown estate expects to devalue these assets significantly in the coming years. My guess is this high current valuation is because of the energy companies having to pay higher upfront ‘option fees’ to develop the project prior to agreeing a lease which is a much lower fee. There was a lot of competition for projects in Scotland, only 1 in 5 bids were successful. By contrast the two major projects in Wales have a single company involved i’m not deliberately trying to sell us down in wales, but the current debate by politicians is oversimplified, and many aren’t asking the right questions

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Valley Girl

No but there is a FOI request from Dafydd Wigley for amount paid by Dŵr Cymru but they refused to give it!!!

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John Ellis

'Scotland has managed their Crown Estate assets very well indeed, what makes us in Wales less able to do the same?' Surely that's the overriding and pivotal point?

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Ernie The Smallholder

The people of Wales feel strong about devolving the crown estate assets in Wales. It is a sense of pride and self confidence. No one wants to be exploited by a foreign power. It this devolution of these assets don't take place soon it will lead to resentment, and a breakdown in trust between our two countries. The relationship between the Ukraine and Russia are not going too well, are they ? My advice to the UK government is to devolve these assets with its wealth to Wales now or lose all when the people's of Scotland and Wales have no alternative other than to declare full independence.

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Ernie The Smallholder

Wales will succeed if it carries forward collecting all our taxes from our people rather than letting the UK receiving our money. This must include all commerce and businesses trading in Wales becoming registered within Wales for taxation, etc. This is why we must have our own constitution, economy, taxation system, laws and justice system. That means all companies and businesses operating in Wales must be registered with the Welsh government under Welsh law. Foreign owned companies (including UK) must operate through a Welsh registered subsidiary company and pay taxes for trade within Wales. All independent countries already have this in place.

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Y Cymro

We are continually told that all the constituent nations of the UK are equal. If Labour don't devolve the Crown Estate to Wales seeing its management was devolved to Scotland in 2017 meaning hundreds of millions going to the Scottish treasury to be spent of education infrastructure etc... will finally prove that Wales and the Welsh are regarded as a lesser people & nation. We have already been slighted by both Conservative & Labour with HS2 consequential denied. And all the bull**** that the Welsh government received £1.7 billion extra is a lie seeing both Scotland & NI received similar, oh but they also have HS2 consequential, so it's another Labour lie. Also add our devolution deficit now means this is another kick in the teeth by those self-service champagne socialists in London who feather their own and England's nest to our detriment. PM Keir Starmer & WS Jo Stevens must understand if the Senedd & Welsh Government request the devolution not only of the Crown Estate but Policing and Criminal & Youth Justice are doing it because they have a mandate. So enough patronising Wales saying how there no appetite crap! We had 14 years of Tory idiocracy telling us we can't have the devolution of this & that. Enough is enough! UK Labour fails to understand that Welsh Labour was elected on a manifesto promising further devolution. Less they forget..We are your boss not you ours. Just devolve what we want. End of!

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Llew Gruffudd.

The call for the devolution of the Crown Estate to Wales, is more to do with democracy and equity, than any significant financial gain to the Welsh people. The Crown Estate in Scotland is run, as it would in Wales, by Crown Estates Scotland, not the Scottish government. They are an independent body with their own remit from Westminster. It is the case that the profits from Crown Estates are handed over to the Scottish government, £101 million in 2023/24, but then there is a deduction from Scotland's block grant because of the devolution of these responsibilities. The major part of the profit from offshore leases. A financial benefit, but not an economy changer. The big money is in public ownership of the energy and Westminster is not going to allow that. As for the call for parity with Scotland, be careful what you wish for. Scotland, for all it's ' benefits ' have 240000 children in poverty, a failing health and care service, similar to Wales, city crime at higher than UK average and increasing and public services running out of money, just as in Wales. The grass is certainly not greener there and we would be better not being deflected by thinking it is, but concentrate on Wales as a sovereign state, doing things our way

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Llew Gruffudd.

They are ' basket cases ' your words not mine, precisely because the resources, wealth, that would make them better off, is being used by our masters in Westminster for their own purposes. If they allowed more Independence, then Wales and Scotland would keep it for themselves. They would become more wealthy and UKr less. Renewable energy is one example. Wales and Scotland have the resources to be self-sufficient. England not so. Renewable energy therefore remains under the control of Westminster.

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S Duggan

Look, is Scotland benefiting from it's arrangement, or not?

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Llew Gruffudd.

I will give the answer for all runes a good shake for a simple answer. My point is that given Scottish water is publicly owned, a decision by the Scottish government, and bills are lower. Given that Scotland gets a share of HS2 money by virtue of being in control of their rail network, a similar arrangement that was turned down b.y the Welsh government Then the fact that they have similar social, financial and public service problems to Wales. I can't see that the devolution of Crown Estates have made much difference. It's the constitutional system that has to change, not trying to carve little benefits off

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Jonathan Edwards

Wise words, LlG. The beauty of the Crown Estate campaign is that, for the first time in decades, Welsh nationalism has a project which all Welsh voters can get behind, including those who don't vote woke and might vote Reform if offered nothing better. What puzzles me is why, after 100 years of Plaid Cymru, Wales has so few policy campaigns like this running now. Wales could tackle (if not actually solve) most of our problems if we controlled our own tax revenue, but we don't. So Wales is stuck with the Block Grant system, with no sign of any change. Wales clearly needs politicians who are hard-headed practical types who have ideas on setting up a Wales Government which controls its own revenue. Clue 1 - it (and they) will be nothing like the present lot. Clue 2 - at least to start with, it will look much more like a US State. Like any of the 50 States, but we could look at the 'Welsh' State = Pennsylvania, home of coal, steel and Joseph Parry, Bryn Mawr, Narberth PA etc. But we are miles - miles - behind gwaetha'r modd.

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J Jones

Jack, you've been outed here before regarding these porkie-pies, trying to deny that Charlie Saxe-Coburg Gotha extorts money from this country via the Crown Estate. Nation.Cymru by definition is about talking facts regarding this country. The English Tories did set up their own paper for Welch/Outsiders to protect their interests in this country. I don't know if the Western Fail is still printing today but I believe they do take your sort of spin at Wallies.Online.

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S Duggan

It appears the only silver lining is that organisations are coming together. If Cymru is ever to achieve more power and ultimately independence, 'everyone' - every individual and every organisation -needs to work together. One strong voice. The Dragon is awakening, we need to pool resources and become united in making it roar again.

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Valley Girl

As usual Welsh Labour afraid to upset Weatminster. We need AM’s with balls.

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Valley Girl

Interestingly St David’s Pemba won’t get any renewal energy project approved if the US rador scheme outside Solfach goes ahead as MOD will object due to interference.

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Jonathan Dean

Lord Livermore is clearly unfamiliar with the concept of shared service centres. There is no reason why one organisation cannot have two differing decision makes for differing physical scope

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