Crown Estate Bill [Lords]

Caroline Nokes Excerpts

2nd reading
Tuesday 7th January 2025 Commons Chamber

[Matt Rodda (Reading Central) (Lab)]

Thank you, Madam Deputy Speaker, for giving me the opportunity to speak in today’s debate. I wish to speak in favour of the Bill and to make a few brief points, both general ones about wider policy and some in relation to my constituency. I wish to cover the issue of the Crown Estate in central London. I shall then move on to the estate’s property around the coastline, and, finally, I shall come on to some of what I hope will be significant wider benefits of the just transition to a green economy.

First, on modernising buildings in central London, it is often forgotten that our built environment is one of the poorest in terms of energy efficiency across the developed world, including in Europe, and that we do need significant investment. We can obviously see that in the building in which we work. Many buildings in central London date from Victorian and Edwardian times, or the 1960s, when building standards were much lower than they are now. Indeed, there is enormous potential precisely because those building standards were lower—I am talking about issues such as solid walls, cavity walls that are not insulated, and existing single glazing or poor quality older double glazing that could be replaced with newer materials. That shows very precisely the potential benefits in carrying out this work.

It is important to remember, however, that this is in the nature of a one-off capital investment in the short term, which will lead to enormous benefits in the medium to longer term. Therefore, this type of measure, which was outlined so ably by my hon. Friend on the Front Bench, is exactly what is needed by many large landowners to allow them to have access to the capital that they need to carry out works that will improve building efficiency and therefore lead to energy saving. I welcome that, and it is important to remember the context of the built environment in London and across the country.

Secondly, let me move to the issues of the coastline. It is worth noting that the UK is a leader in offshore wind. We need to recognise the benefits of the past few years, particularly the move to the majority of British energy being generated by low carbon sources, particularly offshore wind. However, there is a need for a new, significant additional step up, which requires the mapping of new areas of seabed, new interconnectors, and new grid connectivity at the coast, because the whole of the grid at the moment is designed around a post-war model of large, coal-fired generation inland, so there is significant need for further investment in coastal locations. As my hon. Friend the Member for Exeter (Steve Race) mentioned earlier, some of that is not particularly well mapped, and part of the work that we are seeing allowed today is the ability of the Crown Estates to map much of its property on the coast or on the seabed more accurately, therefore allowing investment as well as supporting and regulating investment as well. I ask the Chief Secretary whether he could outline further detail of aspects of that, in particular the scope for the Bill to allow for and support more investment in interconnectors to other neighbouring countries, as well as more grid connectivity at the coast itself, which can be a bottleneck for renewable energy coming onshore.

Thirdly, I would like to discuss some of the wider benefits of the Bill and ask some further questions. One of the big challenges with the move towards renewable energy is delays in grid connectivity. I have seen that in my own area when I visited a large solar farm next to the M4 motorway, just outside Reading in the seat occupied by my hon. Friend the Member for Earley and Woodley (Yuan Yang). The connection of this large solar array to the grid was delayed by a year because of a lack of capacity among energy companies and wider infrastructure challenges. I hope the Chief Secretary can provide some further detail on how the Bill will allow further acceleration of grid connectivity. I also hope it will add to the wider green energy economy and that the benefits accruing from it could be felt by some smaller onshore schemes.

I certainly ask the Chief Secretary if he could investigate the possibility for it supporting some smaller schemes. For example, in my area there is an innovative scheme to put a low-head hydro generation scheme on the Thames at Caversham. That generates power for several hundred homes. However, there were significant challenges in installing the scheme. Again, grid connectivity, access to capital and other practical issues delayed the project. Up and down the Thames, and other major rivers, there are many examples of sites that could be used for this straightforward, rapidly deployable form of renewable energy. I would appreciate the Minister writing to me if he is unable to comment directly today.

On a related matter, I hope that the Bill will in some way support the wider roll-out of solar on roofs and potentially on canopies over car parks. Both have enormous potential as deployable forms of solar that would have a limited impact on land use, and they may have real benefits through the ease with which they can be accessed. I look forward to getting further detail on those points. I warmly welcome the Bill and thank the Chief Secretary for his words.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Mr Charters]

I was half-expecting my hon. Friend to mention Walleys quarry, although I cannot conceive of how he would link it to the Crown Estate Bill. He will agree that the additional revenue raised by the Bill will benefit his constituents as much as mine.

Over the past decade, the Crown Estate has returned £4.1 billion in net revenue profit to the Treasury. Just imagine how much more it could achieve with the freedom that this Bill provides—not just for the country, but for constituencies such as York Outer. This is what smart, forward-thinking legislation looks like: supporting businesses, securing energy and driving growth. I urge Members on both sides of the House, and particularly Conservative Members, wherever they are, to back this Bill and help us deliver a brighter, greener and more prosperous future.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

[James Wild]

With the leave of the House, it is a pleasure to respond briefly on behalf of His Majesty’s loyal Opposition. [Interruption.] I do not know whether there is a party going on to which I have not been invited, but I am personally very happy to be here to take part in the debate.

This has been a good debate, with more than 10 Members contributing, and not only from coastal areas such as my Norfolk constituency; we have also heard from the hon. Member for Lichfield (Dave Robertson), which underlines the importance of the Crown Estate to all our constituencies.

The hon. Members for Truro and Falmouth (Jayne Kirkham) and for Camborne and Redruth (Perran Moon) spoke about the potential benefits of investment in their constituencies and their part of the world, including the funding of college courses, which are important, as well as investment in energy production.

The hon. Member for Mid and South Pembrokeshire (Henry Tufnell) may want to get some tips from the hon. Member for Great Grimsby and Cleethorpes (Melanie Onn) about how to get on with the Crown Estate, how to get it to do what he actually wants it to do, and how to secure the benefits for his constituency. Perhaps he can have a reset with the Crown Estate.

A number of Members spoke about community benefits, which are very important to securing public support for new infrastructure, be that energy or other issues. Labour Members spoke quite a bit about cutting energy bills. I distinctly remember the pledge they all made during the election campaign to cut energy bills by £300, but energy bills are going up and there is no date for when they will come down. Voters and constituents will remember the pledge and, at the moment, all they can see is their costs going up. The concern is that the pace at which the Energy Secretary wants to drive forward will actually drive up costs for all of our constituents.

I began my remarks by emphasising that the Crown Estate is neither the property of the Government nor part of the sovereign’s private estate. That is key. Its core purpose is to maintain and enhance the value of the estate and the income derived from it. That is why greater transparency is needed about the partnership with GB Energy. The Minister will have heard and, I am sure, noted down all the questions from my opening speech, so I will not repeat them all, but I will repeat this: will he commit to publishing the partnership agreement before we head into the Committee stage?

I am afraid that some of the contributions we have heard have only fuelled my suspicions of the Government’s intention to use the Crown Estate as a vehicle for its energy policy and as a provisional part of the GB Energy body, whatever that may turn out to be. That raises issues about how investments will be determined and the returns that are generated for the taxpayer, as well as the risk surrounding investments, whether crowding in, as hon. Members have referred to, actually happens, whether investment in ports will drive a return, and why commercial providers are not seeking to make similar investments. That conflict and risk was one of the concerns of my right hon. Friend the Member for The Wrekin (Mark Pritchard), who is sadly not in his place. I hope that the Treasury Committee will engage with that point when it examines the nominated new chairman of the Crown Estate commissioners.

That is also why it is important that Parliament has oversight of borrowing limits, rather than that just being in an MOU that can be changed at the Treasury’s whim. That is an important protection that we have in place, and I know that the Minister will also respond to that point in his remarks. Will he also get back to the specific point I raised about disposals and the seabed, and the commitment that Lord Livermore made on Report in the other place about protections and whether an amendment is needed and will be forthcoming?

To conclude, there is wide support for the Bill from across the House, but the short-term interests of the Government should not come at the long-term expense of the Crown Estate and the nation. I look forward to continuing the scrutiny of the Bill in Committee.

[Madam Deputy Speaker]

I call the shadow Minister to wind up.

Crown Estate Bill [Lords]

Caroline Nokes Excerpts

Report stage
Monday 24th February 2025 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Caroline Nokes)]

With this it will be convenient to discuss the following:

New clause 2—Marine Spatial Planning: coordination—

“In relation to any decisions made about marine spatial priorities, the Crown Estate must—

(a) ensure that the decisions are coordinated with the priorities of the Marine Maritime Organisation, and

(b) consult any communities or industries impacted by the plans, including fishing communities.”

Marine plans guide marine use and regulation for sustainable development, balancing the environment, economy, and society. This new clause ensures the Crown Estate collaborates with DEFRA's Marine Spatial Prioritisation through the MMO, using its expertise to inform decisions, preventing conflicts of interest from its new borrowing and investment powers.

New clause 3—Sustainable development: community benefits—

“(1) Before making any investment decision, the Commissioners must assess—

(a) plans for community benefits for local communities, and

(b) plans for community benefits for coastal communities of offshore activities.

(2) In section 3(1) of the Crown Estate Act 1961, at end insert—

‘(1A) The Commissioners must transfer at least 5 per cent of all net profit generated from the Crown Estate’s activities to local communities impacted by those activities.’”

This new clause would require the Commissioners to ensure their activities benefit local communities, including coastal communities, and that 5% of any profits would be transferred to local communities.

New clause 4—Devolution of Crown Estate powers to Wales—

“(1) The Crown Estate Act 1961 is amended as follows.

(2) After section 7 (powers of Minister of Works in Regent’s Park) insert—

‘7A Commissioners’ functions in Wales

(1) The Treasury must set out a scheme to transfer all the existing Welsh functions of the Crown Estate Commissioners (“the Commissioners”) to the Welsh Ministers or a person nominated by Welsh Ministers.

(2) The existing Welsh functions under subsection (1) are the Commissioners’ functions relating to the part of the Crown Estate that, immediately before the transfer date, consists of—

(a) property, rights or interests in land in Wales, and

(b) rights in relation to the Welsh zone.

(3) The Secretary of State must by regulations set a date to implement the scheme under subsection (1) to the transfer of functions to the Welsh Ministers or a person nominated by Welsh Ministers.

(4) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of either House of Parliament.’”

This new clause would require the Treasury to devolve Welsh functions of the Crown Estate Commissioners to Welsh Ministers or a person nominated by Welsh Ministers.

New clause 5—Limit on the disposal of assets—

“After section 3 of the Crown Estate Act 1961, insert—

‘3A Limit on the disposal of assets

(1) The Commissioners must inform the Treasury if the disposal of assets of the Crown Estate will be of a value totalling 10% or more of the Crown Estate’s total assets in a single year.

(2) The Treasury must approve of any disposal of assets above the threshold in subsection (1) and the Chancellor of the Exchequer must lay a report before Parliament within 28 days of being notified by the Commissioners.’”

This new clause requires the Crown Estate Commissioners to notify and seek HM Treasury approval for the disposal of assets totalling 10% or more of the Crown Estate’s total assets.

New clause 6—Partnership agreement: the Crown Estate and Great British Energy—

“The Chancellor of the Exchequer must lay before Parliament any partnership agreement between the Crown Estate and Great British Energy.”

This new clause requires the Chancellor of the Exchequer to lay before Parliament any partnership agreement between the Crown Estate and Great British Energy.

Amendment 1, clause 1, page 1, line 26, at end insert—

“(3) The Treasury must by regulations limit borrowing to a net debt to asset value ratio of no more than 25 per cent.

(4) A statutory instrument containing regulations under subsection (3) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

This amendment would limit the amount the Commissioners may borrow by regulations.

Amendment 4, page 1, line 26, at end insert—

“(3) The Chancellor of the Exchequer must limit borrowing by the Crown Estate under this section by regulations made by statutory instrument, and these regulations may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(4) The first set of regulations made under subsection (3) must limit borrowing to a net debt to asset value ratio of no more than 25 per cent.”

This amendment would limit the amount the Commissioners may borrow by regulations subject to the affirmative procedure for statutory instruments.

Amendment 2, clause 3, page 2, line 17, at end insert—

“(3B) Any framework document published by the Chancellor of the Exchequer, the Crown Estate and the Commissioners must define ‘sustainable development’ for the purposes of this Act.

(3C) The definition under subsection (3B) must include reference to a climate and nature duty.

(3D) A ‘climate and nature duty’ means a duty to achieve any targets set out under Part 1 of the Climate Change Act 2008 or under sections 1 to 3 of the Environment Act 2021.”

This amendment would ensure that this act’s Framework Agreement must define “sustainable development”, and that the definition must include reference to a climate and nature duty.

Amendment 3, page 2, line 17, at end insert—

“(3B) In pursuit of the objective under subsection 3A, the Commissioners must assess the adequacy of protections against coastal erosion in areas affected by their offshore activities.”

This amendment would require the Commissioners to assess the protections against coastal erosion in areas where landfall is made for offshore projects.

Amendment 5, page 2, line 17, at end insert—

“(3B) In keeping the impact of their activities under review, the Commissioners must have regard to―

(a) the United Kingdom’s Net Zero targets;

(b) regional economic growth; and

(c) ensuring resilience in respect of energy security.”

This new sub-section would require the Crown Estate Commissioners, in reviewing the impact of their activities on the achievement of sustainable development, to have specific regard to the United Kingdom’s Net Zero targets, regional economic growth, and resilience in respect of energy security.

[Llinos Medi]

New clause 1 transfers the management of the Crown Estate in Wales to the Welsh Government within two years of the commencement of the Act. The principle behind it is simple: the people of Wales should control and benefit from their own natural resources. For much of Welsh history, that has not been the case, with resources often exploited for the benefit of others. From copper in Amlwch in Ynys Môn, slate in Gwynedd, steel in Port Talbot and Newport, to the coal across the south-east valleys, the rivers of wealth that flowed from those industries were sucked out of our communities—and those communities have since been ravaged by poverty.

Wales is blessed with natural wealth and brilliant people, yet we are also a nation afflicted with deprivation, following years of extraction. Shocking new figures show that child poverty in Wales is set to reach 34.4% by the end of the decade. That is the legacy of our past, in which wealth generated was not used to benefit the Welsh economy or communities. Today, in 2025, that extractive pattern is being repeated with Wales’s green wealth.

Wales has immense renewable energy potential in our windy seas and long coastlines—we can see that demonstrated in the Morlais project on Ynys Môn—but the seabed, along with thousands of acres of land, is controlled by the Crown Estate. Renewable energy projects using these resources are expanding rapidly and delivering profits. We see that in the value of the Crown Estate, which sky-rocketed from £96 million five years ago to £853 million in 2023. However, all profits generated by the Crown Estate in Wales are transferred to the Treasury. This green wealth, just like the wealth from coal and other minerals in the past, is being sucked out of our nation. Millions of pounds generated on the Welsh Crown Estate is taken out of Wales each year, away from our communities who have borne the brunt of decades of economic decline.

In 2017, Scotland gained control over the Scottish Crown Estate and ensured that all profit was kept in Scotland. Devolution has generated millions for the Scottish public purse, with funds going directly to deprived communities such as those in the highlands. Why do the Scottish people get the benefit from their own water, wind and sea resources, but the people of Wales cannot? It is simply not credible for the Government to continue to say that devolution is too complicated, too costly and too time-consuming. These are all issues that can be addressed with proper planning and resourcing. Scotland’s Crown Estate was devolved in 2017. It is ludicrous to say that the Welsh Crown Estate cannot be devolved in a similar way. In Scotland, interim measures were put in place to ensure a smooth transition from the point of devolution until the implementation of a long-term framework for managing assets. New clause 1 takes a similar pragmatic approach by introducing a transition period. It worked in Scotland; it can work for Wales, too.

Throughout this whole debate, the Government have still not addressed the principle of control, so I would like the Minister to answer directly: do his Government believe that the people of Wales should have democratic control over their own natural resources? The people of Wales certainly believe so. Polling shows that majority support among the Welsh public for the devolution of the Crown Estate is higher than ever. It is also supported by the Welsh Labour Government. A majority of councils in Wales have passed motions in support of devolution; Wrexham council did so just last week, with the support of its Labour group. More councils will follow suit, and we may very likely have all councils in Wales declaring support for devolution in the near future. There is a mandate from right across Welsh society for devolution. Members of Parliament would do well to remember that they are here to serve and represent the people, and that the people of Wales have clearly made their views known on this matter.

In closing, I return to the principle that I outlined at the beginning of my speech. Do Members of this House believe that the people of Wales should, after centuries of exploitation, finally be given the right to control and benefit from their own natural resources? If they believe in that principle, I urge them to join me in the voting Lobby.