The Crown Estate has appointed Welsh entrepreneur Michael Plaut as a new commissioner to its board, strengthening its representation of Welsh interests.
Board Expansion Under New Legislation
The Crown Estate, which manages assets including the seabed, agricultural holdings, and commercial property, has increased its number of commissioners from eight to 12 following the Crown Estate Act 2025. This change reflects modern corporate governance practices. The legislation also grants the estate, owned by the monarch, the ability to borrow against its asset base.
Mr Plaut began his career as an investment banker in London before returning to Wales to lead family business Northmace. He currently serves as a non-executive director and member for Wales on the BBC board, and chairs the Royal Welsh College of Music & Drama. As a board member and former CBI Wales chair, he will provide advice on conditions, priorities, and opportunities in Wales, including 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, commented: "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 into 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."
The recruitment of Mr Plaut for a four-year term followed the code of practice published by the Commissioner for Public Appointments. Commissioners are appointed by the King following recommendations from the Chancellor and the Prime Minister. They receive an annual remuneration of £30,000, with an additional £5,000 fee for extra responsibilities.
Calls for Devolution of the Crown Estate to Wales
The new Plaid Cymru Welsh Government is advocating for devolution of the Crown Estate to Wales, similar to the arrangement in Scotland. Since devolution in 2017, Crown Estate Scotland has contributed aggregate profits to the Scottish Government's budget, posting a record net profit of £130m in the 2024/25 financial year, which was allocated to the consolidation fund.
However, the UK Treasury is increasing deductions from the Scottish Government's block grant to account for rising profits from Crown Estate Scotland. This deduction amounts to £15m in the current financial year and will reach £40m by 2028-29, after which it will remain flat and unindexed. Any devolution of Crown Estate assets in Wales, which requires UK Government approval, would likely include a similar netting-off mechanism.
Currently, no separate figures exist for revenue and profits generated by the Crown Estate in Wales, as they are consolidated into the overall accounts. However, some financial data is expected to be released later this year. 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 subsea cables and interconnectors for electricity supply and data traffic. The estate manages around 65% of the foreshore and tidal riverbed, and on land, it holds approximately 50,000 acres of common land, primarily rough pasture for grazing.
The Crown Estate, covering Wales, England, and Northern Ireland, manages a diverse £16bn portfolio. Last year's legislation gave the estate the ability, subject to Treasury approval, to borrow against its asset base. The Scottish Government currently has no plans to seek borrowing powers for Crown Estate Scotland, which had net assets of £809m in its last financial year. In contrast, the Crown Estate had net assets of £15bn at the end of the 2024/25 financial year. The amount the Crown Estate can borrow against assets, intended to support investments like de-risking clean energy infrastructure, has yet to be determined. The legislation does not specify an amount or fixed percentage of the asset base. The estate is working with the Treasury to finalise a detailed framework governing borrowing, including controls, approval processes, and financial parameters.
If the Crown Estate were devolved to Wales, it would be prudent for the Welsh Government to negotiate borrowing powers against assets. However, on a per capita basis, borrowing against Welsh Crown Estate assets might yield less benefit for Wales compared to the current England and Wales arrangement, given that the Crown Estate's lucrative London property assets—including Regent Street and St James'—are valued at £7.1bn alone. This assumes that borrowing proceeds are distributed equitably to Wales, unlike historical underfunding in non-devolved rail enhancement investment. As it stands, the Welsh Government would be powerless to prevent an unfair allocation from Crown Estate borrowings against assets.
