Crown Estate Bill [Lords]

Llinos Medi Excerpts

2nd reading
Tuesday 7th January 2025 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

The Crown Estate owns 65% of Wales’s foreshore and riverbeds, and more than 50,000 acres of land. Recent rising demand for renewable energy projects has resulted in the value of the land sky-rocketing. In 2007, the asset value of the Crown Estate in Wales was £21.1 million, and in 2023 this reached £853 million. Correspondingly, profits generated from these assets have also increased. Net revenue profit across the Crown Estate rose from £345 million in 2020 to £1.1 billion in 2024. Profits generated from Wales’s natural resources are, however, not retained for the Welsh public purse; instead they leave Wales and are sent to the Treasury and the sovereign grant. In contrast, in Scotland the Crown Estate is devolved and profits from Scottish natural resources are transferred to the Scottish Government. In 2024 the sum was estimated to be a record £108.3 million. How can the Government justify Welsh profits being sent to the Treasury and the monarch when in Scotland they are held back and put back into the Scottish purse? The situation is worse than that, with Welsh councils having to pay lease fees simply to use the land which is owned by the Crown Estate. In 2023 the sum was nearly £300,000. With huge pressures on council budgets, how can that be justified?

In the age of coal, Wales saw a huge extraction of wealth from our communities. In 2025, Wales is now experiencing a similar process of extraction of our green wealth.

[Catherine Fookes (Monmouthshire) (Lab)]

The reality is that Plaid Cymru Members are divided on this issue and are confused as well. Their colleagues in the other place supported provisions in this Bill to create a new commissioner with special responsibility for Wales, yet now the hon. Member is saying only devolution will do. Why does she think Plaid Cymru colleagues in the other place are wrong?

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[Llinos Medi]

I will come on to answer that question and perhaps show a pragmatic way of working forward.

As I said, in 2025 Wales is now experiencing a similar process of extraction of our green wealth and we cannot let this happen. As in Scotland, it is for the people of Wales to have control and derive the benefit from all profits generated from our own resources. However, the Bill makes no mention of devolving the Crown Estate to Wales despite the fact that the new investment and borrowing powers under the Bill may allow the Crown Estate to generate £100 million more a year in profits for the Treasury. None of this will be retained by the Welsh Government.

In the other place, Lord Hain’s amendment, supported by Plaid Cymru, has ensured that there will be Welsh representation on the Crown Estate board. While we welcome that as a step forward it still does not address the fact that membership of the Crown Estate board is largely outside of democratic control as it is the monarch who appoints the commissioners who make investment and borrowing decisions, not Parliament or the Senedd.

[Claire Hughes (Bangor Aberconwy) (Lab)]

Devolving the Crown Estate would needlessly jeopardise the role it is playing now to deliver good clean energy and jobs, which are needed across Wales, including in the hon. Member’s constituency, which neighbours mine. These jobs are much needed across north Wales, as she well knows. The hon. Member is a great champion for her constituency, but does she really want a delay in delivering the jobs in clean energy projects that are needed so much across Wales?

[Llinos Medi]

I will come on to that, too, because as an energy champion for my constituents for many years I am fully aware that we do not want any delay but there is a way of working that through slowly while also benefiting from Scotland’s experience.

Plaid Cymru has been leading the calls for devolution of the Crown Estate for many years, and in July 2023 the Senedd passed a Plaid Cymru motion calling for the devolution of the management of the Crown Estate to the Welsh Government. Only through the devolution of the Crown Estate can the people of Wales have democratic control over their natural resources.

Plaid Cymru will be bringing forward an amendment to devolve the Crown Estate to Wales. Although we will be looking to engage constructively with the Government, including on how to support the Welsh Government, the Crown Estate and energy developers to prepare for devolution, they cannot simply ignore the direction of travel. There is an overwhelming consensus in Wales for devolution. It is supported by the Welsh Labour Government and the independent commission on the constitutional future of Wales as well as 58% of the people of Wales. It is time for the Government to listen and devolve the Crown Estate to Wales.

Crown Estate Bill [ Lords ] (First sitting)

Llinos Medi Excerpts

Committee stage
Thursday 6th February 2025 Public Bill Committees

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The Crown Estate, until now, has made decisions on the leasing of the seabed based mainly on price and cost and nothing else. This Bill will change that by asking commissioners to “keep under review the impact of their activities on…sustainable development”.

Amendment 1 simply clarifies “sustainable development” and slightly expands on what that means for, for example, net zero targets and economic growth. I ask the Minister to consider that and to assure us that that is what the Bill is intended to do, and that it will be the progress and direction of the Crown Estate.

[Llinos Medi (Ynys Môn) (PC)]

It is a pleasure to serve under your chairship. Ms Furniss. I rise to speak to amendment 6, tabled in my name. The amendment would amend clause 3, which relates to the regard of sustainable development that the Crown Estate commissioners must have when undertaking their activities. It would require the commissioners to set sustainable development objectives for their activities and require them to have regard for UK-wide legislation, such as the Climate Change Act 2008 and the Environment Act 2021. I note that is also the intention of amendment 8.

In addition, amendment 6 would require regard for devolved legislation in England, Wales and Northern Ireland. For Wales, that would include the Well-being of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016. Shockingly, child poverty in Wales is set to reach its highest rate in 30 years by the end of this decade, with more than 34% of children living in low-income families. That is 5% up on the current rate, and means that around 32,000 more children in Wales could be pushed into poverty.

The activities of the Welsh Crown Estate could be geared towards helping to address rising child poverty by having regard to the seven wellbeing goals of the Well-being of Future Generations (Wales) Act, such as to develop a more equal, prosperous and resilient Wales. More broadly, this amendment draws inspiration from measures within the Scottish Crown Estate Act 2019, which legislates to ensure that management of the Scottish Crown Estate’s assets is done so that it is likely to contribute to economic development, regeneration and social and environmental wellbeing.

The Crown Estate manages a huge amount of land and natural assets. It is only right that it works with existing devolved legislation across all nations to meet sustainable and wellbeing goals, and to do so by fulfilling clear objectives. I urge the Government to incorporate this aim into the Bill.

[Pippa Heylings]

I will speak to amendment 8, which is similar to amendment 6. It would strengthen clause 3 by ensuring that sustainable development is properly defined within the Crown Estate’s framework document and that this definition explicitly includes a climate and nature duty.

The Crown Estate plays a pivotal role in the management of our land, seas and natural resources. It is well known for its ambition around nature recovery. It is a key player in our offshore wind expansion, biodiversity conservation and sustainable land management, but in areas in which there are multiple competing uses and values, including fishing, marine protected areas, and even highly protected marine areas. Therefore we need reassurances, as were obtained in the other House, that clause 3 does not just require commissioners to keep under review their impact on sustainable development without clearly defining what that means in practice.

I must acknowledge where this amendment started in life, which is with Baroness Hayman’s work in the other House. After much debate, it was agreed that sustainable development must be kept under review by the commissioners, but with a reference to the framework document in which a definition would be provided. Baroness Hayman said:

“What matters is the impact we have and how much we have shifted the dial in terms of what the Crown Estate achieves in support of the Government’s climate and nature objectives.” —[Official Report, House of Lords, 5 November 2024; Vol. 840, c. 1448.]

This amendment seeks to provide clarity and accountability for what was agreed verbally in the other House—that the definition would not be on the face of the Bill, but would be in the updated framework agreement. We need that to ensure there is a consistent benchmark against which decisions can be assessed, in line with the public duty to our climate and nature targets. As the definition within the framework agreement would specifically refer to, those are the climate targets under the Climate Change Act 2008 and the nature restoration goals under the Environment Act 2021.

This would mean that the Crown Estate cannot simply pay lip service to sustainability; it must actively contribute to decarbonisation, biodiversity protection and the UK’s broader environmental goals. Climate change and nature loss are economic risks, as well as environmental ones. Embedding clear, enforceable sustainability duties in the Crown Estate’s framework, according to our existing legislation, will ensure that its investments and operations support long-term resilience and prosperity. This amendment strengthens the existing clause. It does not seek to define it on the face of the Bill, but assures us, as happened in the other House, that the definition is within the framework agreement.

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[The Chair]

Will Llinos Medi wish to press amendment 6 to a Division?

[Llinos Medi]

indicated dissent.

[The Chair]

Amendment 8 has just now been debated with amendment 1. Pippa Heylings indicated that she might press amendment 8 to a Division. Will she wish to move it?

Crown Estate Bill [ Lords ] (Second sitting)

Llinos Medi Excerpts

Committee stage
Thursday 6th February 2025 Public Bill Committees

Brought up, and read the First time.

[Llinos Medi (Ynys Môn) (PC)]

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

[The Chair]

With this it will be convenient to discuss new clause 12—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.

[Llinos Medi]

The new clause places a duty on the Treasury to transfer management of the Crown Estate in Wales to the Welsh Government within two years of the commencement of the Bill. This would correct the glaring imbalance in the constitutional settlement of the UK whereby Wales is unable to direct and benefit from its own natural resources in the way that Scotland can. There is an overwhelming majority in favour of devolving the Welsh Crown Estate; it has been called for by the independent commission on the constitutional future of Wales, the national infrastructure commission for Wales and the Labour Welsh Government. I note, sadly, that the Welsh Government have failed to submit any written evidence in favour of devolution to this Committee.

Half of all Welsh councils have passed motions calling for the devolution of the Crown Estate, with more preparing motions for the coming weeks and months. Devolution is also supported by 58% of the population of Wales, according to the latest polling—a clear majority. The Government have argued consistently that devolution of the Crown Estate would “fragment the market”. I note that that is the same position as the previous Conservative Government, which is why the former Labour Secretary of State for Wales, Lord Hain, was right when he said, during the Lords Bill Committee, that this position

“reflects old, centralised, conservative, anti-devolution Whitehall thinking.”—[Official Report, House of Lords, 14 October 2024; Vol. 840, c. 18.]

Scotland is also a proof of concept that a devolved Crown Estate does not impede investment or fragment the market. If there can be a smooth and orderly transition of the management of the Crown Estate to Scotland, why not the same for Wales?

On Second Reading in the Commons, the Government argued that devolution would complicate existing processes and potentially delay grid connectivity reform, as well as the further development of offshore energy. Let me take those points in turn. First, with proper planning and a guarantee by the UK, working with the Welsh Government, to protect reserved interests, including the national grid, it would reduce the risk of impediments to ongoing reforms. That is why new clause 5 includes provision to ensure that the Treasury acts to secure reserved matters, such as the national grid, as part of the transfer of the management of the Welsh Crown Estate to the Welsh Government.

Secondly, on the potential further delays to offshore development in Wales, a devolved Welsh Crown Estate creates the opportunity for it to be strategically integrated into the planning of sub-sectors, including offshore wind in Wales. Looking again at Scotland, devolution has allowed for greater alignment between marine energy planning and licensing for renewable energy projects, such as offshore wind. With a devolved Crown Estate, the Scottish Government have taken a sectoral marine planning approach for offshore wind. They have made a specific plan for offshore wind development that provides the strategic frameworks for seabed leasing for commercial-scale offshore wind by Crown Estate Scotland. While England, Wales and Northern Ireland will have various forms of marine plans that the Crown Estate must have regard to, they cover a wide variety of policy areas and are not sector-specific.

The Welsh Government have a number of other areas that overlap with the responsibility of the Crown Estate in conducting early development of offshore wind. Those include their devolved responsibility over Welsh ports and responsibility for education in Wales, including skills and apprenticeships. These are crucial for the development of robust local supply chains for offshore wind projects. Wales could integrate a devolved Welsh Crown Estate into Welsh devolved plans and responsibilities, leading to a more strategic and joined-up approach to offshore development. In this way, devolving the Crown Estate is about not just profits from renewable licensing, but driving economic development in Wales. That would surely be a more attractive proposition to developers. The Government cannot continue to hide behind the excuse that devolution creates uncertainty. Yes, devolution will mean change.

[Noah Law (St Austell and Newquay) (Lab)]

Does the hon. Member recognise that the potential devolution of the Crown Estate in Wales could cause no end of issues for the fair distribution of supply chain and economic benefits in communities, alongside their Celtic neighbour in Cornwall, for example?

[Llinos Medi]

That is why we have asked for a two-year approach, so that we can work together. It has happened in Scotland and it is possible. I think it is only fair that we ask the new UK Government, who want to devolve local authorities and regions in England, for devolution of the Crown Estate in Wales as well. It was another Labour Secretary of State, Ron Davies, who said:

“Devolution is a process. It is not an event and neither is it a journey with a fixed end point. The devolution process is enabling us to make our own decisions and set our own priorities, that is the important point.”

I urge this Labour Government to heed those words and support my amendment to devolve the Crown Estate to Wales.

[Pippa Heylings (South Cambridgeshire) (LD)]

I will speak to new clause 5 and to new clause 12 which calls for the devolution of the Crown Estate to Wales. While Scotland has controlled its Crown Estate since 2017, Wales has been left without these powers, despite the fact that vast Crown Estate assets lie within its borders. It is time to correct that unbalance and bring Wales into line with Scotland. Devolving control of the Crown Estate would not only recognise Wales’s status as an equal nation, but deliver substantial economic benefits to communities across Wales. Under the current system, profits from the Crown Estate flow directly to the UK Government.

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[James Murray]

I thank the hon. Member for Ynys Môn for tabling new clause 5, which would require that within two years of the day on which the Act commences, the Treasury must have completed a transfer of the responsibility of the management of the Crown Estate in Wales to the Welsh Government. It would allow the Treasury, by regulations, to make provision about the transfer relating to reserved matters as necessary, and would require it to make provision to ensure that the employment of any person in Crown employment is not adversely affected by the transfer of responsibility.

I also thank the hon. Member for South Cambridgeshire for tabling new clause 12, which would require the Treasury to set out a scheme to transfer all existing Welsh functions of the Crown Estate commissioners to Welsh Ministers or a person nominated by Welsh Ministers. The Welsh functions would consist of the property, rights or interests in land in Wales and rights in relation to the Welsh zone.

The Government believe there is greater benefit for the people of Wales and the wider United Kingdom in retaining the Crown Estate’s current form. Both new clauses would most likely require the creation of a new entity to take on the management of the Crown Estate in Wales which, by definition, would not benefit from the Crown Estate’s current substantial capability, capital and systems abilities. It would further fragment the UK energy market by adding an additional entity and, as a consequence, 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. Its reform aims to create a more efficient system and reduce the waiting times for generation projects to connect to the grid.

[Llinos Medi]

For clarification, does that plan not include Scotland, which has already been devolved?

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[James Murray]

My hon. Friend is absolutely right that a collective approach to projects such as those in the Celtic sea, which cross English and Welsh administrative boundaries, can increase a return for the UK Consolidated Fund, which benefits people in Cornwall, Wales and other parts of the UK. It ensures that we get the best return on our investment through Crown Estate activities. Our concern about the proposition in the new clauses is that it would undermine such revenue generation for all our public services, as well as disrupting the emerging market in offshore floating wind at a critical time, when what investors need is stability, certainty and confidence to invest in a growing sector, not organisational change that might undermine the investment they seek to make.

To pick up further the point made by my hon. Friend the Member for Camborne and Redruth, were Wales to benefit only from the income generated in Wales, it would likely receive zero or negligible benefits for several decades to come, because Welsh assets are relatively new and it will take them time to mature—in the order of 10 to 15 years. The Crown Estate has shown itself to be a trusted and successful organisation, with a proven track record in effective management and profit generation, which are valuable outcomes that we need to be careful not to undermine.

As I set out earlier, the Government supported the inclusion of clause 6, which will require the appointment of a commissioner responsible for giving advice about Wales. I will not repeat what I have already set out, but it is important to underline that that will help to ensure that the board of commissioners for the Crown Estate continue to work in the best interests of Wales, alongside their existing duties as commissioners. That will certainly strengthen the Crown Estate’s ability and mission to deliver benefits for the whole UK.

I am aware that hon. Members may not agree with the points I have made, but I hope that I have set out clearly why the Government believe the existing structure remains the best approach. I hope hon. Members feel able not to press their new clauses.

[Llinos Medi]

I thank the Minister for those comments; I will come back on a few of them.

This debate is about fairness. We are asking for fairness and equity for Wales, and parity with Scotland. It is important to give a bit of history. Our natural resources in Wales have been extracted from our communities yet, as I mentioned earlier, by the end of this decade 34% of children in Wales will live in poverty. If the money we are discussing was spent back in Welsh communities, it would have a dramatic effect.

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Brought up, and read the First time.

[Llinos Medi]

I beg to move, that the Clause be read a Second time.

The new clause would require the Crown Estate commissioners to transfer all profits generated by the Crown Estate in Wales to the Welsh Government on an annual basis. Although figures for the profits generated in recent years by the Welsh Crown Estate are not available, the figures from across the whole Crown Estate show that overall profits have increased dramatically. Since 2021, there has been a 408% increase in Crown Estate profits and therefore the profits from Wales have likely seen a similar level of increase.

Even if one accepted the Government’s argument that devolution of the management of the Crown Estate would involve too much risk, that does not justify profits generated on assets in Wales not remaining in Wales. Therefore, will the Government outline whether they support the principle that all profits generated through Welsh natural resources should be kept in Wales, as is the case with Scotland?

Some argue that Wales would not benefit financially from the devolved Crown Estate given the impact on the devolved Welsh budget. However, the Scottish model already demonstrates how profits from the Welsh Crown Estate could interact with the devolved Welsh budget. In Scotland, all profits from the Scottish Crown Estate are paid into the Scottish Consolidated Fund and redistributed for public spending. These profits interact with the Scottish block grant adjustment mechanism, which was agreed with the Treasury under the 2016 Scottish fiscal agreement.

The mechanism removes a portion of the block grant as the profits from the Scottish Crown Estate increase, to avoid Scotland gaining twice over. That is due to the Scottish budget benefiting from a Barnett share of the expenditure in England, supported by Crown Estate revenues arising from England, Wales and Northern Ireland. Crown Estate Scotland has estimated that net revenue profits in 2023-24 will be £113.5 million. The current reduction to the Scottish block grant under the adjustment mechanism will be £10 million, which should result in an estimated usable revenue from the Crown Estate Scotland for the Scottish Government of £103.5 million.

If Wales followed a similar approach to Scotland, it would likely gain additional revenues from the Crown Estate and would have only a small proportion removed from its block grant in return. That would occur through a Welsh block grant adjustment mechanism to be negotiated between the Welsh Government and the Treasury. Will the Government look at opening discussions with the Welsh Government on retaining profits in Wales and establishing a fair block grant adjustment mechanism to account for rising profits over time? It would be up to the Welsh Government to decide what to do with the money from the Crown Estate.

Plaid Cymru has proposed targeting investment into deprived communities in rural Wales and our deindustrialised valleys, and using the money to develop a Welsh sovereign wealth fund. However, that is not within the scope of the new clause. I hope the Government will listen and agree to the new clause, thereby endorsing the principle that profits generated in Wales should remain in Wales.

[The Chair]

Do you wish to say anything, Mr Wild?

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[James Murray]

I thank the hon. Member for Ynys Môn for tabling new clause 6, which would require that the commissioners must transfer all net revenue profit generated from the Crown Estate’s activities in Wales to the Welsh Government on an annual basis. As The Crown Estate’s operations are not divided into business units for each nation, calculating the exact net profit figure attributable to Wales is not straightforward, because most of the associated costs cannot easily be disentangled from the Crown Estate’s overall costs and would, in places, require subjective judgment.

Furthermore, as I set out earlier, given that the Crown Estate takes a long-term approach to investments, it is anticipated that its investments in Wales could take up to 10 to 15 years to see an appropriate return. Therefore, if net profits were transferred to the Welsh Government now, they are likely to be zero or negligible. I hope that explanation was helpful and that the hon. Member feels able to withdraw the new clause.

[Llinos Medi]

I am unsure how the Minister can say that we would not receive any profits when the Government cannot work out what profits Wales generates. It feels a bit difficult to understand that argument.

I am fighting the corner for fairness for Wales. We have lost all our natural resources and that has been feeding the UK machine. Unfortunately, we are seeing poverty on the rise and deindustrialisation in communities. The new clause would see the profits that are generated given back to those communities, to be spent in those communities and on their future.

Question put, That the clause be read a Second time.

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Brought up, and read the First time.

[Llinos Medi]

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

[The Chair]

With this it will be convenient to discuss the following:

New clause 8—Publication of lease fees—

“In section 2 of the Crown Estate Act 1961 (reports and accounts), after subsection (4) insert—

‘(4A) In their accounts the Commissioners must publish details of all individual lease agreements with public bodies in—

(a) Wales,

(b) England, and

(c) Northern Ireland.

(4B) The information provided under subsection (4A) must include the value and name of the agreement.’”.

This new clause requires the Crown Estate to publish, in its annual accounts, a list of all lease agreements it has with public bodies in Wales, England and Northern Ireland including each lease’s name and valuation.

New clause 9—Publication of separate reports for England, Wales and Northern Ireland—

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

‘(1A) In addition to the report under subsection (1), the Commissioners shall produce a report on the performance of their functions each year in each of England, Wales and Northern Ireland.

(1B) The Commissioners shall lay—

(a) a copy of the report in relation to England before both Houses of Parliament,

(b) a copy of the report in relation to Wales before Senedd Cymru, and

(c) a copy of the report in relation to Northern Ireland before the Northern Ireland Assembly.’”.

The new clause would require that the Crown Estate Commissioners report separately for each country and for the devolved legislatures to have the report laid before them.

[Llinos Medi]

I note that since 2021 the net revenue profit and asset value data for Wales has not been published by the Crown Estate. The Crown Estate says that the reason for this is that:

“While in the past, we have produced illustrative figures for Wales, we have since shifted our focus to a more holistic approach to assessing value and increasing our investment, and we realise that such figures are not a fair reflection of value. The previous Wales numbers we published have not included a cost allocation.”

In an answer from September 2024 to my written question asking about the merits of producing regular disaggregated assets and revenue data for Wales, the Government said:

“To achieve efficiency in its operations, the Crown Estate runs many of its functions at a whole enterprise level. As a result, separate financial statements for Wales would not reflect the fact that expenditure is incurred for the benefit of the whole portfolio, and it is not possible to disaggregate net revenue profit attributable to Wales.”

I also note that the Government accepted an amendment to the Bill in the House of Lords to include national commissioners for England, Wales and Northern Ireland on the board of the Crown Estate. The amendment also grants Welsh Ministers and the Executive Office in Northern Ireland the right to be consulted about the Welsh and Northern Irish appointments. Therefore, can the Government outline how these national commissioners will be able to advise on the affairs of each respective nation if there is no process by which the Crown Estate can measure and delineate the profits and costs incurred separately in England, Wales and Northern Ireland?

New clause 7 would address this gap by requiring annual reporting of both asset value and revenue across all nations under the Crown Estate, and by doing so, it would require the Crown Estate to develop a way to measure asset value and revenue in a consistent manner. I hope the Government will accept this amendment to strengthen the ability of national commissioners to fulfil their intended role to advise and act in the interests of the nations they represent on the Crown Estate board.

I turn to new clause 8. Under the current arrangements, many public bodies, such as local authorities, pay lease fees to the Crown Estate simply to lease the land in their own area. However, details of these are not routinely published. In response to my written question in October 2024, the Government noted that,

“Publishing details of those fees would risk prejudicing the commercial interests of both The Crown Estate and the local authorities involved.”

However, local authorities are able and willing to provide this information through freedom of information requests. These FOIs have revealed that in 2023 local authorities in Wales paid fees amounting to well over £300,000 a year. At a time when council budgets are under enormous pressure, how can these fees be justified? This is public money that vital council services such as housing, education and social care are being deprived of.

We should be having a debate on the merits of these fees. This has to start with total transparency and a full account of what is being charged and where. That is why I have tabled new clause 8, which requires the Crown Estate to publish in its annual accounts a list of all lease agreements it has with public bodies in Wales, England and Northern Ireland, including each lease’s name and valuation. I ask the Government to support my new clause for the sake of transparency and to agree that, where public money is being spent, the public should be able to see where this money is going.

New clause 9 is similar to new clause 8. It would require that the Crown Estate commissioners report separately for England, Wales and Northern Ireland, and that the devolved legislatures have these reports laid before them. The Crown Estate already produces highlights reports for Wales and Northern Ireland. This amendment would place this type of reporting on a statutory footing by ensuring that these reports are made available to both the Senedd and the Northern Ireland Assembly, and would allow for greater transparency and engagement between the Crown Estate and the devolved legislatures. Diolch.

[James Murray]

New clause 7, tabled by the hon. Member for Ynys Môn, would require the Crown Estate to disaggregate reporting in its accounts to show capital and revenue figures for the activities of the Crown Estate in England, Wales and Northern Ireland. At present, the Crown Estate’s operations are not divided into business units by nation. It would therefore not be straightforward to disaggregate reporting in that way. It would be a complex task, requiring a series of highly subjective judgments to be taken. Although it is possible to identify gross revenues from each nation, reporting them without any representation of the costs associated would be entirely misleading. However, the Crown Estate does publish broader information relating to its activities in England, Wales and Northern Ireland as part of its annual report and accounts. The Government’s view is that it remains appropriate for the Crown Estate to continue its reporting on a whole-business basis. I hope that that explanation is helpful and encourages the hon. Member to withdraw her new clause.

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As the Crown Estate’s operations are not divided into business units by nation, attempting to disaggregate performance in each nation is a complex task. The division of the Crown Estate’s performance by nation would inevitably require a high degree of subjective judgment that would likely be misleading. It is therefore the Government’s view that it remains appropriate that the Crown Estate continues to report on a whole-business basis, supplementing its annual report with a Wales review that highlights its activities in Wales. On that basis, I hope the hon. Member feels able to withdraw the new clause.

[Llinos Medi]

This is a leadership discussion—it is about the leadership we are asking the Government to show in giving Wales the fairness it deserves. We are asking for clarity around public money. I am a bit concerned that there should be a commercially sensitive discussion around public money, which is meant to be transparent. We can get it through freedom of information requests, so it should be easy to collate that information so that the people of Wales and across the United Kingdom can see how their local authorities are spending their money on the Crown Estate and where that is spent afterwards.

In addition, I am unclear about the role of the commissioners. The information that we are asking for in these new clauses would strengthen the role of the commissioners and give them the ability to fulfil their role for the benefit of those regions whose concerns they are there to voice. I will press this matter to a vote.

Question put, That the clause be read a Second time.

Crown Estate Bill [Lords]

Llinos Medi 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.

[Henry Tufnell (Mid and South Pembrokeshire) (Lab)]

We live in uncertain times, and as a nation we face many challenges ahead. For one, there is Russia’s invasion of Ukraine. The impact on our domestic energy prices has shown the extent of our reliance on the international oil and gas markets. Since 2022, gas prices for households across the country have spiked, and the cost of living continues to bite. Putin’s boot is on our throat.

Another challenge is the result of rapid deindustrialisation across the UK since the 1980s, and too much economic focus on London and south-east England. We have seen massive job losses at Port Talbot; we face an uncertain future at Grangemouth; and we still bear the scars of the loss of the mining industry. Regional inequality is stark, and in my constituency of Mid and South Pembrokeshire, the rate of child poverty is steadily increasing.

And of course there is our climate crisis: wildfires in California, torrential rain in Spain, and extreme heatwaves and longer droughts. Even walking through the village of Angle in Pembrokeshire with members of the local community council, it is all too easy to see the increase in frequency of flooding, not to mention its damaging impact on residents and local farmers.

Prior to the general election of 4 July, my right hon. Friend the Chancellor set out her economic vision of securonomics: we would make, sell and buy more in Britain, and so deliver energy security and create good, well-paid jobs while tackling the climate crisis. My Labour colleagues and I stood for election on that manifesto, and it is time to deliver. At a time when the challenges are so great and the need for leadership is so acute, it is vital that the Crown Estate has greater scope to rise to those challenges and do its part for the revitalisation of our great nation.

The provision in clause 3 that commissioners at the Crown Estate

“must keep under review the impact of their activities on the achievement of sustainable development in the United Kingdom”

is therefore to be welcomed. That amendment was hard fought for by the noble Lords in the other place, and I commend them for it. However, it is our duty in this House to provide clarity about the meaning and scope of “sustainable development”, and about the mechanism for enforcing that provision. Maintaining transparency and accountability is critical for an organisation as big and influential as the Crown Estate. Allowing the estate to define “sustainable development” and report annually is a move straight out of the environmental, social and governance playbook. Given the financial firepower that this House is granting the Crown Estate, allowing it to effectively self-regulate on an issue of national importance is a dereliction of our democratic duty.

Under amendment 5, the commissioners must have regard to net zero, regional economic growth and energy security. It would not impede the independence of the Crown Estate, but would provide unambiguous purpose and direction on an otherwise undefined and unexplained term. It should therefore be welcomed.

--- Later in debate ---

[James Murray]

I think the right hon. Member has misunderstood the point I was making. If we were to have a devolved entity, it would be starting from scratch midway through a multimillion-pound commercial tendering process, just at a time when the Crown Estate is undertaking critical investment in the UK’s path towards net zero—something I am sure she is keen to support.

The commercial viability of all three 1.5 GW floating offshore wind project development areas in the Celtic sea, which straddle the English and Welsh administrative boundaries, benefited from the Crown Estate’s significant investment of time, expertise and capital, which enabled their entry into the market. UK floating offshore wind, an emerging offshore technology that the Crown Estate is supporting, would be particularly vulnerable to market disruption.

It is important to underline that income generated by the whole Crown Estate benefits the people of Wales. As I have noted, the Crown Estate pays its entire net profits into the UK Consolidated Fund each year. That means that much of the revenue already supports public services in Wales, either by supporting UK Government spending in reserved areas or through the funding provided under the Barnett formula and the Welsh Government’s block grant funding.

[Llinos Medi]

As I mentioned in Committee, the Barnett formula is not a fair formula for Wales. In the Scottish model, £10 million was taken out of the block grant, but those communities received £103 million back. I think that is a fair exchange. Does the Minister not agree?

[James Murray]

The hon. Member has highlighted that the changes made in Scotland led to a reduction in the block grant to Scotland.

The focus of the new clauses is the proposal to devolve Crown Estate capabilities to Wales. As I am setting out, that would not make commercial sense when it comes to advancing greater energy capacity, or when it comes to increasing the Crown Estate’s net profit, which is of course reinvested in public services right across Wales and other parts of the UK.

I draw Members’ attention to the fact that in the other place, the Government supported the inclusion of clause 6, which requires the appointment of commissioners responsible for giving advice about England, Wales and Northern Ireland. That will ensure that the Crown Estate’s board of commissioners continues to work in the best interests of Wales.

--- Later in debate ---

[James Murray]

I thank the hon. Member for her intervention. As I said, the Crown Estate and the Marine Management Organisation agreed the statement of intent in 2020, and it is reviewed periodically to focus on priorities and opportunities for alignment. That may provide an opportunity for review in due course to ensure that it meets current aims.

In addition to the Crown Estate’s relationship with the Marine Management Organisation, there are various regulatory requirements on developers who lease areas of the seabed from the Crown Estate to engage with the Marine Management Organisation themselves. Those include requirements through marine licensing. Developers must obtain marine licences from the Marine Management Organisation for activities that could impact on the marine environment. That process involves consultation with statutory bodies and adherence to marine plan policies.

As part of a marine licence application, developers must conduct environmental impact assessments for projects that could significantly alter the environment. That includes consultation with the Marine Management Organisation and other relevant authorities. Developers are furthermore encouraged to engage with local communities, statutory bodies and other stakeholders throughout the planning and development process to address concerns and ensure compliance with marine plans. I welcome the indication from the hon. Member for South Cambridgeshire that she feels able to withdraw the new clause, and I hope I have gone some way to addressing the points that she made.

New clause 3, which was also tabled by the hon. Member, would require the commissioners to assess plans for benefits to local communities and coastal communities in respect of offshore activities before making any investment decisions. It would also require the commissioners to transfer at least 5% of the Crown Estate’s net profit to local communities impacted by its activities. As I set out in Committee, local communities benefit economically from onshore and offshore developments—for example, through job creation and increased business for local suppliers. Local communities will also benefit in the long term as the country transitions away from volatile fossil fuel markets towards clean, domestically produced power, enhancing Britain’s energy independence and security.

As I highlighted in Committee, the Crown Estate has specifically designed the leasing process for its offshore wind leasing round 5 in the Celtic sea to require developers to make commitments to deliver social and environmental value. Tender bidders must think about how their developments can encourage healthier, more resilient and more prosperous communities, creating lasting benefits that extend beyond the lifetime of wind farm leases. Those commitments will be monitored, reported on and enforced throughout the lifetime of the relevant round 5 developments.

As I have laid out before, the Crown Estate is committed to proactively working with local communities and partners to enable employment and skills opportunities. As I mentioned in Committee, it has invested £50 million through the supply chain accelerator to stimulate green jobs and develop a green skills pipeline. It is supporting development in the skills we need for the future, through measures that range from a GCSE in engineering skills for offshore wind, seed-funded by the Crown Estate and developed with Cornwall college, to a post-16 destination renewables course with Pembrokeshire college. It is also partnering with the employment charity Workwhile to create green construction apprenticeships.

The Crown Estate already works closely with communities, charities, businesses and the Government to ensure that its skills initiatives are sensitive to market demands and emerging technologies. While I respect the concerns reflected in new clause 3, the Government consider it important that the Crown Estate retains flexibility in how its skills initiatives are funded and delivered. That enables it to contribute to skills training in the best possible way, while—importantly—not conflicting with its statutory duty to maintain and enhance the value of the estate. On that basis, I hope that the hon. Member for South Cambridgeshire feels able to withdraw the new clause.

New clause 5 seeks to limit the ability of the Crown Estate to dispose of assets without Treasury approval, by requiring it to seek consent for disposals of assets totalling 10% or more of its total assets in a single year. It would also require the Chancellor to lay a report before Parliament within 28 days of being notified of disposals above that threshold. As the Government have set out both in Committee and in the other place, in our view imposing a limit on disposals would undermine the flexibility needed to enable the Crown Estate to operate commercially and meet its core duties under the Act. It is important to emphasise that the Bill is not intended materially to alter the independence of the Crown Estate. Requiring the Treasury to approve the Crown Estate’s ordinary business transactions, which may well be caught by the new clause, would encroach on the independence of the Crown Estate. That is inconsistent with the Government’s vision for the Crown Estate.

The hon. Member for North West Norfolk (James Wild) has concerns that the Crown Estate could choose to sell off critical or significant assets—indeed, he raised that point in Committee. I reassure the House that strong safeguards are already in place to ensure that the Crown Estate maintains and enhances the estate. The first is a legislative safeguard, namely the statutory duty on the Crown Estate to maintain and enhance the value of the estate, and the returns obtained from it, while having due regard to the requirements of good management. Those are set out in the Crown Estate Act 1961 and will remain unchanged by the Bill. The second is a requirement set out in the framework document that governs the relationship between the Treasury and the Crown Estate. That document is clear that the Crown Estate should inform the Treasury of any matters concerning spending, income or finance that are novel, contentious or repercussive. The Government’s view is that that captures any proposed sales of nationally significant assets—a point the shadow Minister raised. I recognise that he may not agree, but I hope he understands the Government’s position on the matter and, as a result, feels able to withdraw his new clause.

The shadow Minister also tabled new clause 6, which would require the Chancellor to lay before Parliament any partnership agreement between the Crown Estate and Great British Energy. As I made clear in Committee, partnership agreements are highly commercially sensitive. It is therefore right that any agreement is not made public or laid before Parliament, as to do so would likely prejudice the commercial interests of the Crown Estate or Great British Energy. I hope the hon. Member feels that he does not need to push the new clause to a vote.

I will consider amendments 1 and 4 together to try to make progress as speedily as I can, Madam Deputy Speaker. They would impose a legislative limit on the amount of borrowing that could be undertaken by the Crown Estate, and both would require the Government to introduce affirmative regulations, setting out a borrowing limit of no more than a 25% net debt-to-asset value ratio. I thank hon. Members for their contributions on this matter. The Government recognise that borrowing controls are an important consideration for the Bill. As such, the Government made available the Crown Estate’s business case, as well as the underpinning memorandum of understanding, which sets out the guardrails that will protect against uncontrolled or excessive borrowing. The key principle is whether a specific limit should be set in legislation. As I have set out previously, it remains the Government’s view that limits on borrowing are best set outside of legislation in a memorandum of understanding.

I have listened to the point made by the hon. Member for North West Norfolk that a limit outside legislation can be easily changed, but I reassure the House that the Bill has been carefully drafted to include strong controls, specifically the requirement for Treasury consent. Alongside that, the existing requirement for the Crown Estate to maintain and enhance the value of the estate, while having due regard for the requirements of good management, is maintained. Taken together, those elements provide clear guardrails around the ability of the Crown Estate to borrow.

Amendment 2, tabled by the hon. Member for South Cambridgeshire, would require any framework document published by the Chancellor of the Exchequer, the Crown Estate or the commissioners to define “sustainable development”. That definition would be required to include a reference to a “climate and nature duty”, which would mean

“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.”

As I set out in Committee, the Government understand the intention behind amendment 2, but a key purpose of the 1961 Act was to repeal various detailed statutory provisions that had built up over the previous 150 years, which were hampering the effective management of the estate. By focusing the commissioners’ duties on enhancing the estate’s value and the returns generated, the commissioners have a clear objective on which they can be held to account. It is an important principle that giving an organisation too many objectives will make it far less effective than giving it clear and focused priorities, and, as I set out in Committee, the Crown Estate is a commercial business, independent from Government, that operates for profit. That mandate is unchanged by the Bill—[Interruption.]

I am getting vibes from the Whip, Madam Deputy Speaker, so I might not respond as fully as I had hoped to some of the remaining amendments. However, I will address amendment 5, which I know matters to several Labour Members who have spoken to it. Amendment 5, tabled by my hon. Friend the Member for Mid and South Pembrokeshire (Henry Tufnell), would require the commissioners, when keeping the impact of their activities under review with respect to clause 3, to have regard to the UK’s net zero targets, regional economic growth and resilience of energy security. I thank my hon. Friend for the discussions that he and I had on this topic both before Committee and last week. A version of the amendment was debated in Committee. I particularly thank my hon. Friends the Members for Truro and Falmouth (Jayne Kirkham), for St Austell and Newquay (Noah Law) and for Camborne and Redruth (Perran Moon) for engaging with me on this matter, and setting out so clearly what is important to them in the constituencies they represent.

Although I understand the sentiment behind my hon. Friend’s amendment, it is perhaps helpful to set out the context behind clause 3. The clause was supported by the Government in the other place, as it sought to clarify and enhance the accountability of the Crown Estate to deliver on environmental, social and economic outcomes. Clause 3 will require the commissioners to keep under review the impact of their activities on the achievement of sustainable development in the United Kingdom. I emphasise that the public framework document, which governs the relationship between the Crown Estate and the Treasury, will be updated in light of that clause, and will include a definition of “sustainable development”, as I have set out several times. The Crown Estate will continue to include information on its activities in its annual report, which is laid before Parliament. The Government’s intention throughout the passage of the Bill has been to ensure that it can stand the test of time without need for regular updates. That, in part, is why the term “sustainable development” was adopted.

I hope I have addressed some of the concerns raised by hon. Members, although I regret I was not able to address all the amendments with quite the level of detail I had hoped. As I made clear earlier, the Government have carefully considered all amendments throughout the passage of the Bill, and I hope that hon. Members will understand the approach we are taking. I thank my hon. Friends the Members for Reading Central (Matt Rodda), for Wolverhampton North East (Mrs Brackenridge), for Harlow (Chris Vince), and for Rushcliffe (James Naish) for powerfully setting out the benefits that the Crown Estate and measures in the Bill will provide to people in their constituencies and across the country. I hope all hon. Members will understand the approach we are taking, and support our targeted and measured changes to ensure that the Crown Estate is able to operate independently, commercially and in the national interest.

[Llinos Medi]

Diolch, Madam Dirprwy Lefarydd. The Government have tried to explain how devolution and the creation of a Welsh Crown Estate would undermine investor confidence, but that has not been the case for the devolved Scottish Crown Estate, which has raised £700 million from offshore wind investments since 2022. A devolved Crown Estate could lead to greater alignment and integration with the economy in Wales, as has been the case in Scotland. With a well-managed transition, there is no evidence that disruption would occur. Devolution would also offer opportunities to strengthen the role of the local supply chains to be used and to actually see the 5,300 jobs that the Government claim will be created for the people of Wales.

I remind hon. Members that it is projected that child poverty numbers will reach 34.4% in Wales in five years’ time, at the end of this decade, but the Joseph Rowntree Foundation says that the forecast in Scotland is 19.8%. I refer hon. Members to the words of a former Secretary of State for Wales, Lord Peter Hain. He recently said that opposing devolution of the Crown Estate

“reflects old, centralised, conservative, anti-devolution Whitehall thinking.”—[Official Report, House of Lords, 14 October 2024; Vol. 840, c. 18.]

Labour promised us that a Labour Government in Wales and a Labour Government in Westminster would benefit the people of Wales. This Labour Government do not show any ambition for the people of Wales, and I ask every Member who wants to see the best for Wales to join me in the Aye Lobby.

Question put, That the clause be read a Second time.