The Crown Estate appoints Welsh entrepreneur to its board

Michael Plaut has been appointed a commissioner

The Crown Estate has appointed Welsh entrepreneur Michael Plaut as a new commissioner to its board.

The Crown Estate, whose assets include the seabed, agricultural holdings and commercial property, has increased its number of commissioners from eight to 12 following the Crown Estate Act 2025 to reflect modern corporate governance.

The legislation also gives the body, which is owned by the monarch, the ability to borrow against its asset base.

Mr Plaut started his career as an investment banker in London before returning to Wales to head up family business Northmace. He is also currently a non-executive director and member for Wales on the BBC board, as well as chairing the Royal Welsh College of Music & Drama.

As a board member the former CBI Wales chair, will also be responsible for providing advice about the conditions, priorities and opportunities in Wales, including on existing and emerging policies relevant to the Crown Estate’s activities.

Ric Lewis, chair of the Crown Estate, said: “It’s fantastic to be welcoming Michael to the Crown Estate board. Michael’s depth of experience across business, public service and cultural institutions, combined with his deep connection to and understanding of Wales, will be a valuable addition to the board as we take forward our strategy in the years ahead.

“Following the Crown Estate Act 2025, this appointment strengthens the board’s collective insight and ensures we continue to take full account of Welsh interests and conditions as we invest for long‑term value for the nation.”

Mr Plaut, who lives in Cardiff, said: “It’s a real privilege to join the Crown Estate board, and I’m excited by the opportunity ahead. I am particularly looking forward to bringing a strong understanding and insight of Wales into Board discussions, helping to make sure that Welsh interests, conditions and opportunities continue to be fully reflected as we take decisions for the long term.”

The recruitment of Mr Plaut, for a four-year term, was made in accordance with the code of practice published by the Commissioner for Public Appointments. Commissioners are appointed by the King following the recommendation of the Chancellor and the Prime Minister. Commissioners have an annual remuneration of £30,000 a year with a separate £5,000 fee for additional responsibilities.

Devolving the Crown Estate to Wales

The new Plaid Cymru Welsh Government is calling for the Crown Estate to be devolved to Wales, as is the case in Scotland.

Since it was devolved to Scotland in 2017, aggregate profits generated by Crown Estate Scotland has provided a boost to the Scottish Government’s budget. In its last financial 2024/25 financial year Crown Estate Scotland posted its highest ever net profit of £130m which was distributed to the Scottish Government’s consolidation fund.

However, the UK Treasury is ramping up what it nets off the Scottish Government’s block grant to account for increasing profits it receives from Crown Estate Scotland. This amounts to £15m in the current financial year, but will reach £40m by 2028-29, after which it will remain flat and unindexed.

Any devolving of Crown Estate assets in Wales, which would require UK Government approval, would likely come with the same netting off mechanism.

There are currently no figures for revenue and profits generated from the Crown Estate in Wales. They are consolidated into the overall accounts for the Crown Estate. However, some financial data is expected to be released later this year.

Crown Estate assets in Wales include renewable energy licences and development rights for offshore wind and tidal projects. It also leases seabed space for oil and gas pipelines, marine aggregates (used in construction) and the subsea cables and interconnectors that help manage electricity supply and carry intercontinental data traffic. It manages around 65% of the foreshore and tidal riverbed. On land it has around 50,000 acres of common land that is primarily rough pasture, used for grazing.

The Crown Estate (covering Wales, England and Northern Ireland) manages a diverse £16bn portfolio.

Last year’s legislation gave the Crown Estate the ability, subject to Treasury approval, to borrow against its asset base. The Scottish Government currently has no plans to seek powers for Crown Estate Scotland to borrow against assets. In its last financial year it had net assets of £809m. Crown Estate has net assets of £15bn at the end of its 2024/25 financial year.

How much the Crown Estate will be able to borrow against assets, which would be used to support investment like helping to de-risk and fast track clean energy infrastructure, has yet to be determined. The legislation doesn’t specify an amount or fixed statutory percentage of the asset base. It is currently working with the Treasury to finalise a detailed framework that will govern how it would borrow in practice, including the relevant controls, approval process and financial parameters.

If the Crown Estate was devolved to Wales it would be prudent for the Welsh Government to also try and negotiate the ability to borrow against assets.

However, on a per capita basis, would the proceeds from borrowing against the Welsh Crown Estate assets be more beneficial for Wales? The Crown Estate’s lucrative property assets in the centre of London, which include Regent Street & St James’, have been valued at £7.1bn alone.

While not a reason to seek a devolving of the Crown Estate to Wales, on a per capita basis it could receive less for investment purposes from the proceeds of any borrowing against Welsh assets, than under the current England and Wales arrangement.

That of course assumes that the distribution of any borrowing against assets by the Crown Estate is at least equitable to Wales – unlike the current under funding, going back decades, on non devolved rail enhancement investment.

As it stands the Welsh Government would be powerless to prevent an unfair allocation to Wales from Crown Estate borrowings against assets.