As a new Crown Estate Act moves ever closer to becoming a reality, the final Parliamentary debates and readings of the Bill threw up discussions focussing on marine planning, devolution and community benefits.

Final amendments to the Bill – which aims to modernise the management and investment powers of the Crown Estate and give broader borrowing abilities – were debated on 24 February.

Proposed amendments to the Bill included a requirement for marine spatial planning coordination, ensuring that decisions on offshore wind projects align with broader marine priorities and involve fishing communities in the consultation process. 

• New Clause 1, Management of the Crown Estate in Wales:
  • “Within two years of the day on which this Act is commenced, the Treasury must have completed a transfer of the responsibility of the management of the Crown Estate in Wales to the Welsh Government.

• New Clause 2, Marine Spatial Planning: coordination, stated that the Crown Estate must:
  • “In relation to any decisions made about marine spatial priorities, the Crown Estate must—
  • ensure that the decisions are coordinated with the priorities of the Marine Maritime Organisation, and
  • consult any communities or industries impacted by the plans, including fishing communities.”
• A new Clause 3 sought to mandate community benefits for coastal areas affected by offshore wind expansion, requiring at least 5% of profits from Crown Estate offshore projects to be reinvested in local communities.

Devolution 

Llinos Medi, Plaid Cymru MP for Ynys Môn, said in the debate:  “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.”

In response, the Government stated the belief that that there is greater benefit for the people of Wales and the wider United Kingdom in retaining the Crown Estate’s current form.

The government’s representative, The Exchequer Secretary to the Treasury, James Murray, said that “to devolve the Crown Estate at this time would risk jeopardising the pipeline of offshore wind development in the Celtic sea, which is planned for into the 2030s. The Crown Estate’s offshore wind leasing round 5 is spread across the English and Welsh administrative boundaries in the Celtic sea.

To be clear, the cumulative impact of the changes that the hon. Member for Ynys Môn is suggesting in her new clause would likely be to significantly delay the pathway to net zero.” 

Marine Spatial Planning: coordination 

The Liberal Democrat spokesperson, Pippa Heylings, said “New clause 2 focuses on marine spatial planning co-ordination and would ensure that the Crown Estate duly collaborated with the Marine Management Organisation, which has the mandate to make decisions about marine spatial planning, and that fishing communities were fully consulted. That aligns with work going on for years as Liberal Democrats have called for comprehensive land and sea use frameworks to resolve conflicts, determine priorities and improve co-ordination.

With growing pressures from offshore wind, marine conservation, fishing and tourism, decision making must be joined up. Marine plans balance economic, environmental and social interests.”

The Exchequer Secretary to the Treasury, James Murray, responded by saying, “New clause 2 would require the Crown Estate to ensure that any decisions about marine spatial priorities are co-ordinated with the priorities of the Marine Management Organisation, and to consult any communities or industries impacted by the plans, including fishing communities. I confirm that the Crown Estate and the Marine Management Organisation already have well established ways of working together to ensure effective collaboration for marine spatial planning and prioritisation.

The Crown Estate’s collaboration with the Marine Management Organisation and other relevant statutory bodies is governed by the Marine and Coastal Access Act 2009. The Act establishes the framework for marine planning and licensing in the UK, and it requires the Crown Estate to have regard to marine policy documents, such as marine plans, in its decision making.

Furthermore, in 2020 the Crown Estate and the Marine Management Organisation jointly agreed a statement of intent, which is reviewed periodically to provide a focus on priorities and opportunities for alignment. That statement of intent complements a memorandum of understanding agreed in February 2011, which sets out a framework to encourage co-operation between parties in relation to the sustainable development of the seabed and rights managed by the Crown Estate.”

Community Benefits 

The MP for South  Cambridgeshire, said of the proposed new clause on community benefit: “I strongly support new clause 3, which would ensure that the Bill brought local communities along with it. That is essential. We tabled the new clause to guarantee that coastal and rural communities would see real benefits from Crown Estate activities. It would require a proper assessment of community benefits before investment decisions are made, and mandate that at least 5% of net profits be reinvested in affected areas.

Coastal communities need to see both jobs and a fair financial return from large-scale developments around them and off their shores. The Crown Estate generates billions from offshore wind, marine industries and land developments, yet local people often see little direct benefit. The new clause would redress that imbalance, ensuring that such communities impacted by change actively benefit from it. It is about fairness and economic regeneration. If the Government are serious about levelling up, they should back the new clause, which would ensure that the Crown Estate’s success was shared by all, not just a privileged few.”

James Murray said in response: “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.”

Next steps

The amendments brought before Parliament either failed at the voting hurdle or were not put forward to a vote. The Crown Estate Bill is set for Royal Assent in March 2025.