Crown Estate profits given to Treasury drop by more than half as revenue falls
The Crown Estate also revealed that revenue account profit tumbled to £487 million from £1.1 billion a year earlier
Profits at The Crown Estate have slumped over the past year due to a smaller boost from offshore wind, with the amount of money being handed to the Treasury being cut by more than half as a result.
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The latest annual figures from The Crown Estate, which oversees the royal family’s land and property holdings, revealed that operating profits fell to £1.2 billion in the year to March, compared with £1.4 billion last year.
It said the drop was primarily linked to offshore wind, as a previous boost from fees linked to an offshore wind option faded away, with projects now entering construction.
Earnings had spiked to record levels in the previous two years thanks to option fees – payments made by companies to reserve a patch of the seabed to eventually build their wind turbines on.
The business owns huge swathes of land across the country, as well as the seabed and much of the coastline around England, Wales and Northern Ireland.
The Crown Estate also revealed that revenue account profit tumbled to £487 million from £1.1 billion a year earlier.
This reduced profit figure also reflects the amount the organisation returned to the Treasury over the year to support public spending.
Meanwhile, the value of The Crown Estate’s assets ticked significantly higher amid a rebound in property values over the past year.
Its net asset value grew to £16.7 billion for the year, compared with £15 billion a year earlier.
The group also reported that its marine operation saw operating profits climb higher to £175 million, excluding the impact of wind farm option fees.
It said it was boosted by favourable wind conditions, new offshore capacity and expansion across different activities in the sector.
Elsewhere, profits from its real estate and development operation increased to £258 million, from £242 million, driven by the strength of the West End.
The update comes after The Crown Estate confirmed plans to accelerate investment last year after the Government granted it new powers which provided more flexibility on how it can invest money.
It is planning investment of up to £5 billion over the next decade across renewable energy, housing and science & innovation as a result.
Dan Labbad, chief executive of The Crown Estate, said: “These results demonstrate both the strength of our underlying business and the importance of taking a long-term approach to managing national assets.
“Over recent years, we have delivered strong growth for the country and invested in areas of national importance including renewable energy, housing and science & innovation.”