Crown Estate Bill [Lords] Report Stage: Amendment 2

What happened: On 24 February 2025, the House of Commons voted on Amendment 2 to the Crown Estate Bill [Lords] at Report Stage. The amendment sought to require the Crown Estate to share revenues more directly with local communities affected by its developments, particularly those related to offshore wind and other energy projects. The amendment was defeated by 316 votes to 61.

Why it matters: The amendment would have redirected a portion of Crown Estate revenues away from the central Treasury and towards communities hosting or adjacent to Crown Estate developments, including coastal communities affected by offshore wind leasing. Under the existing model, Crown Estate profits flow to the Treasury and are redistributed through general public spending, including via the Barnett formula for devolved nations. Supporters of the amendment argued that communities bearing the direct impact of large-scale energy infrastructure should receive a more tangible and local financial benefit. The government's position is that the current centralised model maximises the commercial returns that are ultimately reinvested across all public services, and that introducing local revenue-sharing obligations would complicate the Crown Estate's investment activities.

The politics: The vote divided sharply along party lines. All 310 Labour and Labour and Co-operative MPs who voted did so against the amendment. The 61 votes in favour came predominantly from the Liberal Democrats (50 ayes), with the remainder split between Plaid Cymru (4), the Green Party (4), one Ulster Unionist, and one Independent. The debate sat within a broader set of arguments about whether the Crown Estate Bill adequately benefits devolved nations and local communities, with Welsh MPs pressing strongly for devolution of Crown Estate powers to Wales, and Northern Irish and fishing community representatives seeking protections for coastal industries. The government resisted all such redistribution and devolution proposals throughout the Bill's passage.