Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the Crown Estate charges private businesses (a) lease fees and (b) royalty fees on profits.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Crown Estate as a landowner charges occupiers/tenants, which can be private businesses, rent in accordance with their lease agreements.
In some cases, the rent structure under The Crown Estate’s leases can include a turnover rent element whereby the amount of rent charged is either a percentage of the occupier/tenant’s turnover made at the leased property or the higher of fixed rent and a percentage of the occupier/tenant’s turnover at the leased property. These rent structures are commonly used in the retail market. Royalty fees are used in certain specific situations within a lease structure.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 5 September 2024 to Question 3769 on Crown Estate: Wales, what assessment she has made of the ability of the commissioners with special responsibilities for Wales as provided for within the Crown Estate Bill to perform their functions without disaggregated net revenue profit data for Wales.
Answered by Darren Jones - Chief Secretary to the Treasury
The Crown Estate Bill, as amended in the House of Lords, requires the appointment of a Commissioner responsible for giving advice about Wales (alongside separate equivalent appointments for England and Northern Ireland). The Bill confirms that ‘giving advice about’ means the relevant Commissioner would give advice to the Commissioners about conditions in Wales, in so far as it relates to their functions in relation to Wales. It is the Treasury’s view that the ability to give that advice does not depend on having disaggregated net revenue profit data. The Crown Estate operates across England, Wales and Northern Ireland, but its operations are not divided into business units by nation. It is not possible to disaggregate by nation without applying a high degree of subjective judgment in relation to costs. As was noted in the Answer of 5 September 2024 to Question 3769, The Crown Estate does already publish a Wales Review to supplement the annual report, which highlights The Crown Estate’s work in Wales.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 24 January 2025 to Question 25389 on Crown Estate: Wales, if she will list all ministerial level meetings with the Welsh Government where the devolution of the Crown Estate in Wales has been discussed.
Answered by Darren Jones - Chief Secretary to the Treasury
The UK Government has regular discussions with the Welsh Government at official and ministerial level on a range of issues. This has included a request from the Welsh Government that the UK Government considers devolution of the management of The Crown Estate in Wales.
In the last three months, there has been one ministerial meeting within the Treasury with the Welsh Government which included The Crown Estate and Wales. This was held on the 25 November 2024 between the Financial Secretary to the Treasury and Cabinet Secretary for Finance and Welsh Language. The meeting covered growth, resetting our relationship with the EU, Great British Energy and The Crown Estate.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 January 2025 to Question 22766 on Crown Estates: Wales and with reference to the Answer by the First Minister of Wales to the Question from Rhun ap Iorwerth MS of 21 January 2025, for what reason the First Minister said that there had been discussions on devolving the Crown Estate to Wales.
Answered by Darren Jones - Chief Secretary to the Treasury
The UK Government has regular discussions with the Welsh Government at official and ministerial level on a range of issues. This has included a request from the Welsh Government that the UK Government considers devolution of the management of The Crown Estate in Wales.
As set out in the answer of 13 January 2025 to Question 22766: Crown Estates: Wales, the UK Government and Welsh Government have not entered discussions to take forward the devolution of The Crown Estate in Wales. However, the matter has been discussed at Ministerial level.
Whilst we acknowledge the policy position of the Welsh Government put forward during discussions, as previously set out, the UK Government does not believe devolution of the Crown Estate is currently in the best interests of Wales as it could fragment the energy market, complicate existing processes, and potentially delay grid connectivity reform as well as the further development of offshore energy. Together this gives rise to concerns it would delay progress towards net zero and undermine investment in Welsh waters.
We will continue to engage constructively with the Welsh Government on a wide range of topics relevant to the operation of the devolution settlement, including how to ensure that The Crown Estate works in the interests of Wales.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Welsh Government on devolving management of the Crown Estate to Wales.
Answered by Darren Jones - Chief Secretary to the Treasury
The UK Government has had no discussions with the Welsh Government on devolving the Crown Estate.
The Crown Estate has played a significant role in attracting international investment into Wales to support the UK’s net zero target and will continue to do so through future leasing rounds for offshore wind developments, including floating wind projects in the Celtic Sea. They work closely with the Welsh Government and Natural Resources Wales in support of shared priorities, ensuring that these resources are sustainably managed for the long term.
Introducing a new entity would fragment the market, complicate existing processes, and likely delay further development offshore, undermining investment in Welsh waters.
Asked by: Llinos Medi (Plaid Cymru - Ynys Môn)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of zero rating for VAT buildings retrofitted to (a) Passivhaus and (b) AECB standards.
Answered by James Murray - Exchequer Secretary (HM Treasury)
This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries. This will be vital to making the UK more energy resilient and meeting our 2050 Net Zero commitment.
Installations of qualifying energy-saving materials in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
VAT is a broad-based tax on consumption and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax forecast to raise £171 billion in 2024/25. Taxation is a vital source of revenue that helps to fund vital public services.
One of the key considerations when assessing a new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates. In some cases, reliefs do not represent good value for money, as savings will not always be passed on to consumers.
The Government has no current plans to formally review the VAT treatment of building works. However, all taxes are kept under review as part of the tax policymaking process. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.