Welsh councils say devolution of Crown Estate in Wales is the ‘right approach’

Stephen Price

The case for devolving control of the Crown Estate’s assets within Wales to the Welsh Government remains strong according to a cross-party group representing all of Wales’ 22 local authorities.

The interim report on the future of the Crown Estate in Wales from Welsh Local Government Association (WLGA) – a working group established by Welsh Government – calls for far greater transparency over the Crown Estate’s finances and a stronger partnership approach to ensure communities across Wales benefit from future investment, especially in offshore wind and supporting infrastructure.

The Crown Estate controls large swathes of the Welsh seabed and coastline, as well as around 50,000 acres of land, generating significant revenue that currently flows to the UK Treasury and the monarchy rather than being reinvested directly in Welsh communities.

Councils across Wales have consistently supported the devolution of the Crown Estate’s assets so that decisions about Wales’s natural resources are made in Wales and aligned with local economic priorities.

The WLGA said the report provides useful new evidence and a clear pathway for strengthening accountability while the case for devolution is developed further.

The WLGA said it would now consider the Welsh Government’s response to the report in full, but that the four recommendations, including improved financial reporting, stronger scrutiny arrangements and the development of a clear business case, represent a positive step forward in strengthening Wales’s voice in how the Crown Estate’s assets in Wales operate here.

The association added that it will continue to work with the Welsh Government, the UK Government and the Crown Estate to ensure that Wales secures the maximum possible benefit from future renewable energy developments and other investments linked to its natural resources.

Councillor Andrew Morgan OBE, WLGA Leader, said: “People in Wales deserve to see the full benefit of our natural resources. This report reinforces what councils have been saying for some time – there must be far greater transparency about how the Crown Estate operates in Wales and how the benefits are shared with our communities.

“Local authorities welcome the jobs, investment and opportunities linked to offshore wind and other developments felt in every part of Wales.

“While we warmly welcome the stronger focus on partnership and accountability, our long-standing position remains that the Crown Estate’s assets in Wales should be devolved so that decisions can be taken closer to the communities they affect.”

Bill

Plaid Cymru’s Crown Estate Wales Bill passed its third reading unopposed in the House of Lords on 20 January marking a symbolic victory for the long-running campaign to bring control of Welsh natural assets into Welsh hands.

The Bill was first introduced by Plaid Cymru peer Dafydd Wigley, who has argued that Wales should have the same powers as Scotland over its Crown Estate.

The legislation calls on the UK Government to devolve responsibility for the Crown Estate in Wales to the Welsh Government.

Despite the Bill’s smooth passage through the House of Lords, the UK Government reiterated its opposition to devolution. Responding to the debate, Lord Livermore, Financial Secretary to the Treasury, said ministers believe the current arrangements “provide the best outcomes for Wales and the wider United Kingdom”.

However, Plaid Cymru has signalled that the issue is far from settled. Llinos Medi, the MP for Ynys Môn, confirmed she will reintroduce the Bill as a Private Member’s Bill in the House of Commons.

Whether it progresses will depend on whether the UK Government agrees to allocate parliamentary time.

Ms Medi has also pledged to table an Early Day Motion to increase pressure on ministers to allow the Bill to be debated.

The move followed a failed attempt last year to amend the UK Government’s Crown Estate Bill.

In February 2025, Ms Medi proposed an amendment that would have given Wales parity with Scotland by devolving Crown Estate powers. The amendment was voted down, including by every Welsh Labour MP.

Since then, support for devolution has grown within Wales. All 22 local authorities have passed motions calling for the Crown Estate to be devolved, while a leaked Welsh Labour election strategy acknowledged that the party has “proudly made the case” for devolution, despite it not yet being delivered by the UK Government.

Speaking after the Lords vote, Dafydd Wigley said: “I am very pleased that this Bill, that I first introduced to the House of Lords in September 2024, has today passed its final stage. Plaid Cymru and I have consistently made the case that Welsh resources should be in Welsh hands, and I am glad to have secured support from across the House that this is the most logical way for Welsh communities to benefit from the wealth they generate.

“I now look forward to the Bill progressing to the House of Commons, where Llinos Medi will proudly present it. The UK Government should make time for the Bill’s consideration because it is what Wales deserves.”

Llinos Medi added: “The passing of this Bill in the House of Lords today ensures that the devolution of the Crown Estate to Wales is firmly back on the agenda here in Westminster. It remains deeply disappointing that not a single Welsh Labour MP supported my amendment to bring these powers into Welsh hands last year.

“This was a missed opportunity to stand up for their own constituents, who would directly benefit from ensuring that the wealth generated by Wales’s natural resources is retained and reinvested in our communities, rather than continuing to be siphoned off to London.

“For far too long, wealth has been extracted from our communities in Wales, and we have very little say over how it is managed or where the profits go. This Bill presents a real opportunity to begin redressing that historic imbalance.

“We only need to look at Scotland, which has had full control over its Crown Estate since 2016 and since then has reinvested millions of pounds each year back into local communities. Wales deserves the same parity of power.”