Crown Estate (Wales) Bill [HL] Debate

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Department: HM Treasury
Friday 7th February 2025

(1 day, 18 hours ago)

Lords Chamber
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Baroness Humphreys Portrait Baroness Humphreys (LD)
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My Lords, I thank the noble Lord, Lord Wigley, for securing this Private Member’s Bill, and also for the vast amount of work which has gone into its production and the clarity with which he has explained the intent of the Bill.

The Bill comprehensively covers all the steps necessary to transfer responsibility for the Crown Estate to the Welsh Government. It gives details of a transfer scheme, together with details of post-transfer management, the transfer of rights and liabilities, and the safeguards and conditions the Treasury considers “necessary or expedient”. Crucially, the Bill would amend the Civil List Act 1952 to ensure that all revenue generated from the Welsh Crown Estate assets would be paid into the Welsh Consolidated Fund.

I make no apology for speaking in favour of the Bill, despite a disappointing response to amendments during the progress of the Crown Estate Bill through this House. When I spoke to my Amendment 26, calling for the devolution of the Crown Estate’s powers to Wales, in Committee on the Crown Estate Bill, I explained that I deliberately did not include a timeframe for the transfer of powers to the Welsh Government. I felt then that this will be potentially a long battle—but it is one we are happy to engage with and to continue.

I quoted from the report of the National Infrastructure Commission for Wales, which asserts:

“By 2030, The Crown Estate’s functions in Wales should be completely devolved to a new body that has as its principal aim the reinvestment of all funds in Wales for the long-term benefits of the people of Wales”.


I said that “by 2030” is a timeframe I am more comfortable with. However, the danger is that, by then, most of the wealth might have been extracted from the Welsh Crown Estate.

Why are some of us so keen on the devolution of these powers? In Wales, the Crown Estate is expected to generate at least £1 billion from offshore wind energy leases in our waters in the coming years. Keeping this money in Wales could add an estimated £50 million per year to the Welsh Government’s budget—money that could directly benefit our public services and communities. Devolving the powers of the Crown Estate to the Welsh Government and the Welsh Parliament would bring us into line with Scotland, recognising Wales’s place as an equal nation, and would bring substantial benefits to Wales. The current system sees profits flow to the UK Government, with Wales missing out on vital funds, especially given successive UK Governments’ historic underfunding of Wales, particularly in infrastructure.

I was pleased to see that, yesterday, in the other place, my party announced during the Commons debate on the Crown Estate Bill that it would work with Plaid Cymru to push for the devolution of the Crown Estate. The Lib Dems submitted their own amendment but committed to supporting Plaid’s amendment if it were selected to proceed to the next parliamentary stage.

As the noble Lord, Lord Wigley, referred to, the devolution of the Crown Estate has widespread support in Wales from the Liberal Democrats and Plaid Cymru and a majority of local authorities. As the noble Baroness, Lady Smith of Llanfaes, said, my own council in Conwy County recently voted in favour of a Plaid Cymru motion, and in November Carmarthenshire councillors voted unanimously in favour of the devolution of these powers. I suspect that even the Welsh Labour Government have been a supporter—but we do not know; there has been very little consultation with them, so their voice is very rarely heard. Opinion polling in Wales continues to show that a clear majority of Welsh people want to see the estate devolved.

Noble Lords across the House have made strong cases for the objects of this Bill. I will now turn my attention to the Government’s position and to one of the reasons the Minister gave in dismissing our amendments during the debates on the Crown Estate Bill in this House last year—perhaps he will give it again today. His main reason was that it would

“delay UK-wide grid connectivity reform”.—[Official Report, 5/11/24; col. 1442.]

We can safely say that we know all about delays to grid connectivity in Wales; it has been the focus of the attention of the Welsh Affairs Committee in the other place for a number of years. Its 2021-22 report concluded that

“developers of renewable energy were encountering problems with grid capacity and connecting to the electricity grid in Wales”.

The committee also said:

“We recognise the strengths of an electricity grid that serves the whole of Great Britain but consider that there are distinct challenges and opportunities relating to grid infrastructure in Wales that require specific focus from the UK Government”.


The report contains many references to the UK Government’s responsibility in this area. The then Conservative Government, in their 2023 response to the report, admitted that a “step change” was needed to boost capacity in Wales. Can the Minister say what assessment he has made of the steps, if any, taken by the previous Government to initiate this step change? What further steps have his Government taken since taking office?

I am sure that your Lordships understand that the reference to delaying UK-wide grid connectivity reform as a reason for not devolving the Crown Estate to Wales is rather ironic and particularly galling for those who have been calling for UK investment in this area of infrastructure in Wales for many years. We on these Benches are in full support of the Bill of the noble Lord, Lord Wigley, and we wish it every success.