Proposals to give the Crown Estate more investment and borrowing powers have been supported in the Commons, after MPs were told the change will return more money to taxpayers and aid the transition to net zero.

Treasury minister Darren Jones said the Government will bring the outdated Crown Estate Act 1961 into the modern age, as he opened the Bill’s second reading.

However, during the debate Plaid Cymru MP Llinos Medi criticised the “huge extraction of wealth” from Welsh communities and called for Wales to be given devolved control over the Crown Estate.

In the age of coal Wales saw a huge extraction of wealth from our communities. In 2025, Wales is now experiencing a similar process of the extraction of our green wealth

The Crown Estate is an independent company which belongs to the monarch for the duration of their reign. The value of its land and assets are worth an estimated £15.5 billion, £853 million of which are in Wales.

The revenue from its property portfolio flows directly to the Treasury, but 25% of the annual profits go to pay for the monarch’s official duties. The estate also owns the UK seabed out to 12 nautical miles and has jurisdiction over new offshore wind farms.

On Tuesday, Mr Jones said changes to the Bill were necessary to “deliver returns for the public purse”.

He said: “The purpose of this Bill is to bring legislation governing the Crown Estate into the 21st century.

“The Crown Estate is a commercial business, independent from Government, that operates for profit and competes in the marketplace for investment. Yet it is restricted in its ability to do so by legislation that has not been amended since 1961.

“With less ability to compete and to invest, it is less able to deliver returns for the public purse than it might otherwise be able to do.

“Existing limitations on the Crown Estate’s powers have meant it has had to generate capital for investment by selling its assets. This is neither desirable or sustainable.

“Under current legislation, the Crown Estate is constrained in its ability to support sustainable projects and to preserve our heritage for generations to come.”

He added: “As a result of the changes in the Bill, the Crown Estate will be able to accelerate investment in redeveloping and decarbonising its Regent Street and historic London portfolio, as well as investing in projects to support science and innovation.”

Shadow Treasury minister James Wild expressed the Conservatives’ support for the Bill, but argued that future Crown Estate sell-offs need checks and balances, “given the assets are held for the benefit of the nation”.

Plaid Cymru’s Ms Medi said it was unjustifiable for Welsh councils to be charged almost £300,000 in lease fees by the Crown Estate.

She told the Commons: “In the age of coal Wales saw a huge extraction of wealth from our communities. In 2025, Wales is now experiencing a similar process of the extraction of our green wealth.”

The Ynys Mon MP also said: “Profits generated from Wales’ natural resources are not retained for the Welsh public purse, instead they leave Wales and are sent to the Treasury and the sovereign grant.

“This is in contrast with Scotland where the Crown Estate is devolved and profit from Scottish natural resources is transferred to the Scottish government. In 2024, this was estimated to be a record £108.3 million.

“How can the Government justify Welsh profits being sent to the Treasury and the monarch, whereas in Scotland they are held back and put back into the Scottish purse?

“The situation is worse than that with Welsh councils having to pay a lease fee simply to use the land which is owned by the Crown Estate, and in 2023 this was nearly £300,000. With huge pressures on councils’ budgets, how can that be justified?”

Intervening, Labour MP Claire Hughes (Bangor Aberconwy) said: “Devolving the Crown Estate would needlessly jeopardise the role it is playing right now to deliver good, clean energy and jobs which are needed right across Wales, including in the constituency of (Ms Medi).”

Ms Medi said there is “a way of working that through”, adding that Wales could benefit from Scotland’s experience.

She also welcomed the Government’s confirmation that one of the people appointed to be Crown Estate Commissioners will advise on conditions in Wales, but argued it “still does not address the fact that membership of the Crown Estate board is largely outside of democratic control, as it’s the monarch who appoints the commissioners”.

The Crown Estate Bill was supported by MPs at second reading. It will undergo further scrutiny in the Commons at a later date.