Amendment proposed: 2, page 2, line 17, at end insert—

“(3B) Any framework document published by the Chancellor of the Exchequer, the Crown Estate and the Commissioners must define ‘sustainable development’ for the purposes of this Act.

(3C) The definition under subsection (3B) must include reference to a climate and nature duty.

(3D) A ‘climate and nature duty’ means a duty to achieve any targets set out under Part 1 of the Climate Change Act 2008 or under sections 1 to 3 of the Environment Act 2021.”—(Pippa Heylings.)

This amendment would ensure that this act’s Framework Agreement must define “sustainable development”, and that the definition must include reference to a climate and nature duty.

Question put, That the amendment be made.

The House divided: Ayes 61, Noes 316.

Question accordingly negatived.

Third Reading

King’s consent signified.

I beg to move, That the Bill be now read the Third time.

The Crown Estate is an independent commercial business with a varied portfolio of assets across London, and with marine, rural and urban holdings. It operates for profit and competes in the marketplace for investment opportunities. However, it is governed by legislation that has not changed since 1961. That is why the Bill is focused on modernising the Crown Estate by removing limitations that, if unchanged, would hamper its ability to compete and invest as a commercial business.

The central aim of the Bill has been to ensure that the Crown Estate has a sustainable future for decades to come. Through these targeted and measured changes to its founding legislation, particularly in respect of its investment and borrowing powers, the Government are building on the Crown Estate’s strong track record of success in creating long-term prosperity for the nation. The changes will ensure that the Crown Estate has flexibility to support sustainable projects and preserve our heritage for generations to come. Crucially, the measures will unlock more long-term investment, helping to drive growth across the UK.

The Bill has been strengthened and improved in its passage through both Houses. It has been amended to require the Crown Estate’s board to include commissioners with special responsibility for giving advice about England, Wales and Northern Ireland. That will ensure that the Crown Estate continues to work in the best interests of the UK. There have also been changes to strengthen its transparency and accountability, for example through the requirement for the Crown Estate to report on its activities under the partnership with Great British Energy, and the requirement to keep its activities under review with regards to the achievement of sustainable development.

I thank all hon. Members and all noble Lords in the other place for their thorough consideration and scrutiny of the Bill, and for the many and varied amendments that have been tabled and debated. I also thank everyone who has played a role in getting the Bill to this stage, including my colleagues in the Treasury, Members from across the House who took the time to provide scrutiny, all the parliamentary staff who worked on the Bill, and the officials in my Department who have put in a significant amount of time and effort. I am grateful for the broad support for the Bill from across all Benches. It will ensure that the Crown Estate can operate successfully for many more decades to come. I commend the Bill to the House.

I call the shadow Minister.

I thank hon. Members from across the House, and my noble Friends, who have worked hard to scrutinise this important legislation. I also thank the Exchequer Secretary for the constructive approach he has taken throughout these proceedings, as did the Financial Secretary, particularly on seabed protections, as well as the Public Bill Office, and everyone who has helped to scrutinise the Bill.

There is support across the House for the aims of the Bill, which will deliver the modernisation that the Crown Estate needs, and should generate greater returns for the Exchequer. We are disappointed, however, that the Government have resisted our proposals for greater transparency and appropriate parliamentary oversight, including on borrowing. Similarly, the Crown Estate is about to embark on a novel partnership with GB Energy, and the lack of clarity around that partnership—notwithstanding the limited transparency through the annual report—is a concern. It raises concerns about the political pressure that may be brought to bear on the partnership to persuade it to fund the Energy Secretary’s costly plans. Notwithstanding those concerns, we support the legislation. However, we will be watching carefully to ensure that the primary purpose of the Crown Estate—to maintain and enhance its assets for the benefit of the nation, as well as the income derived from it—is protected.

Question put and agreed to.

Bill accordingly read the Third time and passed.