James Wild

The work on reforming the Crown Estate was developed by the previous Government. I am pleased to be debating the Bill today, and I thank my noble Friends for the scrutiny they have already provided. We support the objective to increase the Crown Estate’s ability to compete and invest, so that it maintains and enhances the value of the estate and the income derived from it. Assets managed by the Crown Estate are not the property of the Government, nor are they part of the sovereign’s private estate. Since George III, the assets have been held in right of the Crown, which encompasses the interests of the sovereign and the Government. That is why appropriate scrutiny of the Crown Estate and its £15.5 billion in total assets is important. It has a rural portfolio of 185,000 acres, manages roughly 7,400 miles of coastline, has one of the largest property portfolios in the west end and returns all its profits to the Treasury. Last year, there was a record profit of £1.1 billion, up more than £600 million largely due to fees from round 4, and it has generated £4.1 billion for the nation’s finances over the past decade. There is, however, the potential to do more. In the business case prepared under the last Government, the Crown Estate estimated that changes in the Bill would enable it to generate £100 million a year in additional revenues by 2030. It is right, therefore, that we help to modernise the Crown Estate as it aims to create lasting prosperity for the nation. Although we support the Bill’s aims, further scrutiny is obviously needed in some areas, including a limit on the level of borrowing, governance, the relationship with Great British Energy and safeguards in relation to the disposal of assets. I will come to each in turn. As we have heard, the kernel of the Bill is clause 1, which confers on the Crown Estate a broader power to borrow, subject to Treasury consent. While I note the need for Treasury approval, a lack of parliamentary oversight on borrowing levels is a concern. When pushed by Baroness Vere of Norbiton and other noble Lords, the Government stated that a limit on borrowing “is better placed outside of legislation”—[Official Report, House of Lords, 5 November 2024; Vol. 840, c. 1400.] and instead should be placed in the memorandum of understanding between the Crown Estate and the Treasury. The MOU sets out that the Crown Estate can borrow up to 25% of the worth of its total assets, but an MOU is easily altered. Public borrowing levels should be transparent. If Parliament is being asked to remove restrictions on borrowing, why should there not be a cap in legislation with the ability to swiftly amend it through a statutory instrument, if necessary, to protect against unconstrained borrowing and the concerns that my right hon. Friend the Member for The Wrekin raised?