UK Government grants Crown Estate new investment powers to drive growth

The UK government has introduced a new bill to update the Crown Estate Act of 1961 which will grant the Crown Estate new investment powers. Officials claim this will stimulate economic growth and increase returns for taxpayers. According to the government, these new powers enable the Crown Estate to invest up to £1.5 billion over the next 15 years in sectors such as clean energy, infrastructure, and digital technologies.

Financial Secretary to the Treasury, Lord Livermore, stated that the government aims to drive economic growth more rapidly, with investment being a crucial component of their strategy. He asserted that the new powers will allow the Crown Estate to invest in growth-generating projects, purportedly delivering greater returns for the public purse and benefiting public services across the UK. Livermore also suggested that these changes will preserve and protect national assets managed by the Crown Estate, aiming to create lasting prosperity for future generations.

The Act introduces flexibilities, including borrowing capabilities, which the government believes will reduce the need to sell national assets to raise investment funds. Officials assert that this will provide greater flexibility in its investment strategies, potentially opening opportunities in areas deemed nationally important, such as offshore energy development, supply chain infrastructure, and digital technologies supporting nature recovery.

Additionally, the Act increases the maximum number of commissioners on the Crown Estate Board from eight to twelve. The government indicates that this change aims to ensure that the Board considers the impact of their activities on sustainable development across the UK.

The government also highlights a partnership between the Crown Estate and Great British Energy, announced last year, which they claim could attract up to £60 billion in private investment to support the UK’s pursuit of energy independence and lower consumer bills.

These measures are part of the government’s broader Plan for Change, which officials say includes initiatives to boost skills, expedite construction projects, and invest in future industries to stimulate economic growth.

The Crown Estate is a vast portfolio of land and assets in the UK that is owned by the monarch but managed independently. It is not private property of the King but is instead held in trust for the nation, with its profits going to the UK Treasury.

The estate includes commercial properties, rural land, offshore wind farms, and large areas of the seabed around the UK. It is responsible for managing these assets to generate revenue, particularly through leases for businesses, agriculture, and renewable energy projects like offshore wind. Every year, 100 percent of the Estate’s net profits go to the Treasury, which then allocates a portion called the Sovereign Grant to fund the official duties of the royal family.