New powers granted to modernise The Crown Estate for benefit of the UK
For the first time in The Crown Estate’s history, it has been granted borrowing and new investment powers to future proof the organisation and help it to create financial, social and environmental value for generations to come.
The Crown Estate manages a diverse £16 billion portfolio of land, property and the seabed for the long-term benefit of the nation. The legislation passed today, the Crown Estate Act 2025, will help the business to perform better against its core duties as set out in the original, founding 1961 Act: to grow the value of the business into the long-term and the profits it returns to HM Treasury for spending on public services. Over the last ten years, The Crown Estate has returned more than £4 billion to the nation’s finances.
The new powers will enable The Crown Estate to have a greater flexibility for investment which will create long-term impact on decarbonisation and energy security, nature recovery, creating inclusive communities and economic growth. In turn, helping to drive increased profits for public spending.
Dan Labbad, Chief Executive of The Crown Estate, said:
“This legislation marks an historic moment in realising The Crown Estate’s full potential to create long-term value for the nation.
“By allowing us to borrow and invest more flexibly, we are future proofing a national institution to have an even greater impact for generations to come as well as increasing how much profit it can generate for public spending.
“We take this responsibility seriously and look forward to working with Government and others over the coming months and years to make this a reality.”
Financial Secretary to the Treasury, Lord Livermore, said:
“This government is going further and faster to drive economic growth, our number one mission.
“That includes boosting investment, which is the lifeblood of a growing economy and a key part of our growth strategy.
“These new powers will empower the Crown Estate to invest in new growth-generating projects and deliver a greater return for the public purse, benefiting public services right across the UK.
“Importantly, this change will also preserve and protect the precious national assets run by the Crown Estate, creating a lasting prosperity for future generations.”
The new powers include:
The power to borrow. Until now The Crown Estate has had to sell assets to generate capital for reinvestment. Getting certainty to borrow through the new Act will free up its cash reserves to further invest, for example in accelerating the development of offshore wind; science and innovation; and regenerative agriculture. The Crown Estate expects to start modestly drawing down on these new borrowing powers towards the end of the decade.
Greater flexibility in how and where it invests such as in digital technologies to support nature recovery. It has also signposted an additional £400m over the short to medium term for investment in supply chain infrastructure, manufacturing, research and testing facilities. This includes a further £15 million to be made available this year through the Supply Chain Accelerator Fund to de-risk the early-stage development of UK supply chain projects servicing the offshore wind sector.
Four more Commissioners. The new Act increases the maximum number of commissioners on The Crown Estate Board from 8 to 12, bringing it in line with modern corporate governance best practice. Three of the new Commissioners will have an additional responsibility to provide advice on conditions in Wales, Northern Ireland, or England, and further strengthen the Board’s ability to act in the long-term national interest.