Welsh Labour Demands Crown Estate Devolution and Funding Reform to Unlock Offshore Wind Potential
Key Insights
Welsh Labour is demanding the devolution of the Crown Estate to Wales and a fundamental reform of the country's funding mechanism from Westminster.
The party asserts that local control over the Crown Estate's seabed assets is essential for Wales to fully benefit from future offshore wind farm developments.
First Minister Eluned Morgan emphasized that Wales must not allow its offshore wind resources to be exploited without equitable financial returns, citing historical grievances.
The UK government opposes devolution, arguing it would undermine the commercial viability and potential of floating offshore wind projects in Welsh waters.
Welsh Labour has intensified its demands for Westminster to devolve control of the Crown Estate to Wales and fundamentally reform the country's funding mechanism, asserting that such changes are crucial for maximizing the economic benefits from burgeoning offshore wind developments. At a recent party conference, delegates overwhelmingly supported motions advocating for the Welsh government to receive its full financial entitlement, enabling enhanced investment in vital public services like education and healthcare.
The core of the dispute centers on the Crown Estate, which encompasses £603 million worth of land and 65% of the seabed surrounding the Welsh coast. First Minister Eluned Morgan forcefully articulated Wales's claim during her 'Red Welsh Way' speech in May, emphasizing the imperative for Wales to directly benefit from offshore wind farms constructed on these waters. "We saw them take our coal, we saw them take our water. We will not let them take our wind, not this time, not on my watch," Morgan declared, underscoring a historical grievance regarding resource exploitation.
The UK government, however, has consistently rejected these calls, with Welsh Secretary Jo Stevens arguing that devolving the Crown Estate would lack commercial sense and potentially jeopardize the significant potential of floating offshore wind projects. This stance contrasts with Scotland, which receives direct financial benefits from Crown Estate projects, albeit with corresponding adjustments to its government funding.
Beyond the Crown Estate, Welsh Labour is also pushing for an overhaul of the Barnett formula, the population-based system currently used to allocate funding to the devolved nations. Critics contend that this formula systematically underfunds Wales, advocating instead for a needs-based assessment. Unison, a key trade union, tabled a motion at the conference calling for negotiations to establish a funding formula rooted in fairness and a comprehensive assessment of national requirements, alongside the organizational arrangements necessary for Crown Estate devolution.
Cardiff Council leader Huw Thomas, a prospective candidate for the 2026 Senedd election, highlighted the strategic importance of these reforms: "Labour is the party of devolution but that requires us now to reform how we are funded to ensure that Wales receives an equitable share and the powers that we need." The motion passed by a show of hands on Saturday, signaling a unified party stance on these critical fiscal and resource management issues, which are increasingly intertwined with Wales's clean energy ambitions.