The Crown Estate has published financial figures for 2025/26
The Crown Estate generated a windfall £200m in profits from its assets in Wales in the last year.
The vast majority of the income was from option fees paid by companies taking part in the planned giant 1.5GW Mona offshore windfarm development in the Irish Sea, some 30km off the coast of north Wales. Mona is being developed by a joint venture involving oil giant BP.
The Crown Estate’s profits have been published as part of a more open approach by the corporation. The Royal Family receives 12% of the income from its assets in England, Wales and Northern Ireland and the remainder goes to the UK government.
There are calls for the profits from the Crown Estate’s assets in Wales to go directly to the Welsh Government as happens in Scotland. Wales’ new Plaid Cymru government and the previous Labour administration of Eluned Morgan have called for it to be devolved.
This year’s accounts show that in 2025/6, the Welsh assets generated a profit of £210m slightly down on the figure last year of £253.4m in 2024/25, which was also boosted by windfarm revenue.
The vast majority of this year’s operating profit, some £200m, came from option fees relating to the Mona wind farm.
The project forms part the Crown Estate’s offshore wind leasing round four and is 87% within Welsh waters off the north Wales coast
These option fees were time limited and have now ceased after Mona entered its pre-generation phase earlier this year. Excluding option fees, the Crown Estate said its operating profit in Wales would have been just £9.8m.
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.
For the financial year 2025/26, the Crown Estate’s assets in Wales were valued at £290m – a 22% year-on-year increase following the awarding of development contracts for three huge floating offshore wind farms in the Celtic Sea under leasing round five.
However, the auction process for round five set option fees at just £.1.6m which the Crown Estate said was a reflection of the more “challenging conditions in the global market in recent years, and the less mature technology involved in floating offshore wind, which carries a different risk and cost profile.”
Only one is solely in Welsh waters off the coast of Pembrokeshire, with another straddling both and English and Welsh (equally) and a third just in English maritime waters. The three schemes are projected to create 5,000 jobs with an total economic impact of £1.5bn. They are not scheduled to become operational until the mid 2030s.
Since 2024, the Crown Estate has also invested £18m in projects to support the UK’s offshore wind supply chain, including £5m to support delivery of the three offshore floating windfarms in the Celtic Sea. Seven projects in Wales have benefitted from this investment, which is part of a wider commitment to invest up to £400m in a UK offshore wind supply chain.
Dan Labbad, chief executive of the Crown Estate, said: “This has been an important year of progress for The Crown Estate in Wales, as we continue to grow our ambitions for offshore wind and the marine economy across the nation.
“Over the past few years, we have made significant strides to strengthen our operations through local partnerships, investment and engagement. Securing agreements for three floating offshore wind projects in the Celtic Sea reflects these efforts, with the potential to create over 5,000 jobs and contribute £1.4 billion to the wider economy.
“At a time when conditions in the global market are unusually challenging and tenders in other countries have failed to attract interest, this is an outstanding result that shows what we can achieve when we work together.
“Like us, the new Welsh Government has a clear vision that the Celtic Sea opportunity must deliver long-term value for Wales and Welsh communities, and we look forward to building a strong partnership with Plaid Cymru ministers to realise these benefits, together.”
The UK Government has steadfastly declined calls for a devolving of the Crown Estate in Wales.
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.
Moreover, the Crown Estate has appointed Welsh entrepreneur Michael Plaut as a new commissioner to its board. It 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, the ability borrow against its asset base.
Mr Plaut started his career as an investment banker in London before returning to Wales to head up family-owned 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 in 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.”
Borrowing powers
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 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.



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