Abolish the Duchy of Lancaster!

In the last article I argued that Crown Estate holdings in Wales, such as the seabed around the Welsh coast, should be transferred to Welsh Government control. Not claiming cause and effect, that demand appeared in Plaid Cymru’s election manifesto and has since been raised by the Plaid-led government with Westminster. Labour should agree this as part of a wider package of devolving power and income to Wales.

I also said I would discuss the Duchy of Lancaster. The Duchy’s main purpose is to provide the monarch with an independent income, and it certainly is a nice earner for him (annual surplus of around £24-27 million).

One of the most striking features of the Duchy is its legal structure. It is inalienable, meaning the monarch cannot sell off its core assets for personal gain. Instead, it operates as a permanent trust that must be preserved for future monarchs. At the same time, it functions as a commercial estate, generating a substantial private income.

It is not a corporation and does not pay corporation tax, although the monarch has voluntarily paid income and capital gains tax since 1993. Even so, the detailed use of its income is not fully disclosed, which continues to raise questions about transparency.

The Duchy also has some unusual legal features. In most of England and Wales, ownerless property, known as bona vacantia, passes to the Crown via the Treasury. In Lancashire and certain associated areas, however, it goes instead to the Duchy of Lancaster. This can include assets from dissolved companies or estates where someone dies without a will or identifiable heirs.

Within the Duchy, decisions on land use, leasing and management are taken by the Duchy Council and professional estate managers rather than local government. However, this does not create a separate jurisdiction. Normal planning rules, environmental protections and wider UK law still apply. The Duchy is not a “state within a state”, but it does exercise a degree of autonomy over a large and valuable portfolio of land and property.

Parliament’s role reflects this hybrid status. MPs can ask questions, scrutinise issues and review published accounts. However, Parliament cannot direct how the Duchy is managed, treat its revenues as public funds, or exercise the same financial control as it does over government departments. This limited oversight is one reason the Duchy continues to attract debate.

In recent years that debate has grown. Campaign groups have called for the Duchy to be abolished, and its assets brought into public ownership, although this has not been taken up by major political parties. There has also been wider scrutiny following investigations into Duchy income, including rental arrangements with public bodies such as the NHS and the armed forces. These developments have prompted calls for greater transparency and accountability.

The Duchy of Lancaster, along with the Duchy of Cornwall, are feudal left overs and should be abolished. Lands, assets and rights should be brought into public ownership so that potentially they can be used for the common good.

In the next article, I will look more closely at the issue of ownerless property and how it is currently handled.