The Crown Estate has been granted enhanced borrowing and investment powers following the passage of the Crown Estate Act 2025, aiming to future-proof the organization and support initiatives such as offshore wind leasing.
The new legislation is designed to facilitate more frequent leasing rounds, aligning with the objectives outlined in the recent Future of Offshore Wind report, which targets an additional 20-30GW of seabed leasing rights to be brought to market by 2030.
By gaining the certainty to borrow under the new Act, the Crown Estate will be able to unlock its cash reserves for increased investments, including accelerating offshore wind development, advancing science and innovation, and promoting regenerative agriculture. The organization anticipates beginning to draw on these new borrowing powers toward the end of the decade.
The Crown Estate also gains greater flexibility in its investment approach, which includes potential investments in digital technologies to support nature recovery. Furthermore, the Crown Estate has earmarked £400 million over the short to medium term for investment in supply chain infrastructure, manufacturing, and research and testing facilities. This includes £15 million to be allocated this year through the Supply Chain Accelerator Fund, which aims to de-risk early-stage UK supply chain projects related to the offshore wind sector.
Dan Labbad, Chief Executive of The Crown Estate, stated: “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.”
Financial Secretary to the Treasury, Lord Livermore, commented: “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.”
The Crown Estate Act 2025 also introduces a change in governance, increasing the maximum number of commissioners on The Crown Estate Board from eight to twelve, aligning it with modern corporate governance practices. Three of the new commissioners will focus on advising on conditions in Wales, Northern Ireland, and England, further strengthening the Board’s capacity to act in the long-term national interest.
