Labour MPs criticised for rejecting Crown Estate devolution

Labour MPs have come under criticism for voting against a proposal that would have transferred control of the Crown Estate in Wales to the Welsh Government. The move, which Plaid Cymru argued would have ensured that profits from Welsh land and seabed assets remained in the country, was rejected in the House of Commons on Monday.

The amendment to the Crown Estate Bill, tabled by Plaid Cymru’s energy spokesperson Llinos Medi MP, called for the UK Treasury to hand over management of the estate’s assets in Wales within two years. The proposal was defeated by 316 votes to 59.

Currently, profits from the Crown Estate in Wales, which was valued at £853 million in 2023, go directly to the UK Treasury. By contrast, the Scottish Crown Estate was devolved in 2017, allowing the Scottish Government to reinvest its revenues into local communities. In 2024, Scotland’s Crown Estate generated £113.2 million in profits.

During the debate, Ceredigion Preseli MP Ben Lake questioned the government’s stance that devolution of the Crown Estate would “fragment the market,” asking why this argument did not apply to Scotland. In response, a UK Government minister said, “We’re not historically analysing what happened in Scotland but looking at the proposals put forward to us [in relation to Wales].” The government argued that devolution would delay investment.

Following the vote, Llinos Medi MP said Welsh Labour MPs had chosen to “put party before country.”

“Today provided Welsh Labour MPs with a real opportunity to put country before party by voting in favour of my amendment to ensure that wealth generated in Wales is kept in our communities to benefit our people. It is deeply disappointing that they failed to stand up for the interests of the people of Wales,” she said.

She also criticised the UK Government’s claim that devolution was “too costly,” arguing that Wales “cannot afford to miss out any longer” on the revenues generated by its natural resources.

Flintshire County Council is among a growing number of local authorities in Wales to have expressed support for transferring control of the Crown Estate. The council passed a motion last month calling for devolution, joining others such as Wrexham Council. The motion, tabled by Labour councillor Simon Jones, was passed unopposed.

The Crown Estate’s assets in Wales include significant land and coastal holdings, such as the Dee Estuary, Talacre, and areas in Bagillt and Trelogan. It also profits from renewable energy projects, which account for 93% of its value in Wales.

A 2023 YouGov poll found that 75% of people in Wales supported devolution of the Crown Estate. Campaign groups such as YesCymru and Siarter Cartrefi have long argued that, as in Scotland, control over these assets should be transferred to the Welsh Government to directly benefit local communities.

Mark Tami, MP for Alyn and Deeside, was among the 316 MPs who voted against the amendment.

Speaking during the debate, Llinos Medi MP emphasised the historical context of resource extraction in Wales and argued that the country was again missing out on its own wealth.

“For much of Welsh history, resources have been exploited for the benefit of others,” she said. “From copper in Amlwch and Ynys Môn, slate in Gwynedd, steel in Port Talbot and Newport, to coal across the south-east valleys. The rivers of wealth which flowed from these industries were sucked out of our communities.”

She warned that history was repeating itself with renewable energy profits, adding: “This green wealth, just like from coal and other minerals in the past, is being sucked out of our nation.”