The Crown Estate has been granted borrowing and new investment powers to future proof the organisation, including supporting offshore wind leasing.
The passing of the Crown Estate Act 2025 will support the ambition set out in the recent Future of Offshore Wind report to run more frequent leasing rounds to facilitate an additional 20-30GW of seabed leasing rights brought to market by 2030.
Getting certainty to borrow through the new Act will free up its cash reserves to further invest, for example in accelerating the development of offshore wind; science and innovation; and regenerative agriculture, the Crown Estate said.
The Crown Estate expects to start modestly drawing down on these new borrowing powers towards the end of the decade.
The new powers also include greater flexibility in how and where it invests, such as in digital technologies to support nature recovery.
It has signposted an additional £400m over the short to medium term for investment in supply chain infrastructure, manufacturing, research and testing facilities.
This includes a further £15m to be made available this year through the Supply Chain Accelerator Fund to de-risk the early-stage development of UK supply chain projects servicing the offshore wind sector.
Dan Labbad, chief executive of The Crown Estate, said: “This legislation marks an historic moment in realising The Crown Estate’s full potential to create long-term value for the nation.
“By allowing us to borrow and invest more flexibly, we are future proofing a national institution to have an even greater impact for generations to come as well as increasing how much profit it can generate for public spending.
“We take this responsibility seriously and look forward to working with Government and others over the coming months and years to make this a reality.”
Financial secretary to the Treasury, Lord Livermore, said: “This government is going further and faster to drive economic growth, our number one mission.
“That includes boosting investment, which is the lifeblood of a growing economy and a key part of our growth strategy.
“These new powers will empower the Crown Estate to invest in new growth-generating projects and deliver a greater return for the public purse, benefiting public services right across the UK.
“Importantly, this change will also preserve and protect the precious national assets run by the Crown Estate, creating a lasting prosperity for future generations.”
In addition, the new Act increases the maximum number of commissioners on The Crown Estate Board from 8 to 12, bringing it in line with modern corporate governance best practice.
Three of the new Commissioners will have an additional responsibility to provide advice on conditions in Wales, Northern Ireland, or England, and further strengthen the Board’s ability to act in the long-term national interest.