The Times: UK Crown Estate accused of greed in rush for offshore wind profits

16 October 2025

Labour MPs say the body, which has been threatened with a legal challenge by Greenpeace, favours foreign firms when leasing sections of the sea bed.

Labour MPs have accused the Crown Estate of greed and prioritising foreign workers in its leasing of swathes of the sea bed for offshore wind farm development.

The estate is facing the threat of legal action from Greenpeace, which accuses it of pushing up the cost of wind power by exploiting its monopoly over the sea bed around England and Wales.

Several Labour MPs have criticised the estate’s approach, arguing that it should require companies building infrastructure to invest in the local supply chain.

The estate’s profits are allocated to the Treasury, but a portion is taken by the sovereign grant, which funds the official work of the King and other working members of the royal family. The sharp rise in the fees paid by offshore wind developers has given a substantial boost to the grant, to £132 million from £86.2 million the previous year. The grant is set at 12 per cent of the estate’s profits, a level that is expected to be reduced when it is reviewed next year.

Companies pay an “option fee” to the estate in advance and a regular operating fee. Several countries offer a discount on the advance fee, as long as the difference is invested in ensuring the supply chain is local. MPs want a similar scheme introduced here.

Henry Tufnell, the Labour MP for Mid and South Pembrokeshire, accused the estate of “greed — one of the seven deadly sins”. He said: “What is incredibly frustrating is the Crown Estate acts like and is given powers to act like a quasi-government organisation. However, when you look at their approach, they are simply another commercial organisation which seeks to maximise revenue and hand 12 per cent to the monarch. 

“Their strategy is at odds with the chancellor’s approach, where we buy, make and sell more in the UK. The Crown Estate is given huge power but doesn’t add the value that the additional government powers demand or warrant.”

Tufnell’s call was supported by fellow Labour MPs including Steve Witherden, MP for Montgomeryshire & Glyndwr, and Noah Law, MP for St Austell & Newquay.

Law said floating offshore wind “represents an industrial opportunity for Cornwall of a scale not seen in generations”. He added: “But we must learn the lessons of the North Sea experience and ensure that we build those supply chains domestically — not just in the harbours of Port Talbot and Falmouth, but right up the spine of Cornwall, into its industrial heartland in my constituency and beyond.”

The Crown Estate said British companies are also involved in the development and operation of windfarms, and that winning offshore wind bidders have committed to building up skills and careers locally.

It said it was “reductive” to suggest that it focused on short-term gains over the long-term success of the offshore wind sector. A spokesman said: “The Crown Estate is tasked by the British parliament to create value over the long term for the benefit of the country and we’re delivering by investing early, de-risking development and creating real pathways to jobs and economic growth.”