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Report and Accounts Year Ended 31St March 2019 Report and Accounts Year ended 31st March 2019 Preserving the past, investing for the future LLancaster Castle’s John O’Gaunt gate. annual report to 31st March 2019 Annual Report Report and accounts of the Duchy of Lancaster for the year ended 31 March 2019 Presented to Parliament pursuant to Section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838. annual report to 31st March 2019 Introduction Introduction History The Duchy of Lancaster is a private In 1265, King Henry III gifted to his estate in England and Wales second son Edmund (younger owned by Her Majesty The Queen brother of the future Edward I) as Duke of Lancaster. It has been the baronial lands of Simon de the personal estate of the reigning Montfort. A year later, he added Monarch since 1399 and is held the estate of Robert Ferrers, Earl separately from all other Crown of Derby and then the ‘honor, possessions. county, town and castle of Lancaster’, giving Edmund the new This ancient inheritance began title of Earl of Lancaster. over 750 years ago. Historically, Her Majesty The Queen, Duke of its growth was achieved via In 1267, Edmund also received Lancaster. legacy, alliance and forfeiture. In from his father the manor of more modern times, growth and Newcastle-under-Lyme in diversification have been delivered Staffordshire, together with lands through active asset management. and estates in both Yorkshire and Lancashire. This substantial Today, the estate covers 18,481 inheritance was further enhanced hectares of rural land divided into by Edmund’s mother, Eleanor of five Surveys: Cheshire, Lancashire, Provence, who bestowed on him Staffordshire, Southern and the manor of the Savoy in 1284. Yorkshire. It also includes Foreshore ownerships, a Minerals Survey and Edmund’s inheritance passed to a significant Urban Survey which his son Thomas, Earl of Lancaster is made up of a number of office, who was executed in 1322 by King retail and industrial properties Edward II for rebellion. Thomas’s across the country. lands and titles were forfeited but eventually passed to his brother Henry and on his death to Henry’s The Whitewell Estate, Lancashire Survey. Preserving the past, investing for the future 3 annual report to 31st March 2019 Introduction continued son, the celebrated diplomat and After the War of the Roses, soldier Henry Grosmont, on whom however, the bloodline of the Edward III conferred the title of historic Lancastrian kings was Duke of Lancaster ‘in recognition broken and Edward IV of York of (his) astonishing deeds of became King in 1461, taking prowess and feats of arms’ in 1351. possession of Henry VI’s forfeited estates. By Act of Parliament, Edward III also raised Lancaster to Edward IV ‘incorporated’ the a County Palatine for the duration Duchy, declaring that the of Henry’s life. Palatinate powers Lancaster inheritance should were devolved royal powers descend through the Monarchy for use in regions where central as a private estate to be held “for The Duchy began when Henry III government was difficult. These ever to us and our heirs, Kings of gifted lands to his son. devolved powers gave the Duke England, separate from all other of Lancaster administrative control Royal possessions.” of the law courts and the right to appoint the sheriff, judges, justices Some 300 years later, under the of the peace and other senior Crown Lands Act 1702, it was officials serving the County. provided that the Sovereign should only receive income and When Henry Grosmont died in not capital from the Duchy. This 1361, the inheritance became remains the case today. part of his daughter Blanche’s dowry. She had married one of The Duchy Today Edward III’s sons, John of Gaunt, More than 750 years on, the in 1359. John was thus made 2nd Duchy of Lancaster has in large Duke of Lancaster in 1362 and he part retained its historic land and persuaded his father Edward III to property holdings. However, as grant the Palatinate powers to him a modern landed estate, it also and his heirs permanently. includes a diverse portfolio of When John died in 1399, King office, retail and industrial property, Richard II confiscated the as well as development land. Lancaster inheritance and The Duchy is administered by banished John’s son, Henry the Chancellor of the Duchy Bolingbroke, from England for life. of Lancaster on behalf of the Within the year, Henry Bolingbroke Sovereign. The Chancellor in turn returned from exile, raised an army delegates functions such as the and forced Richard to abdicate. management of the property He ascended the throne as Henry portfolio, financial investments IV in October 1399. and the discharge of the Duchy’s One of Henry’s first acts as King administrative duties to the Duchy was to stipulate the conditions on Council. Members of Council are which the Lancaster inheritance appointed by the Sovereign on the should be held. He specified that advice of the Chancellor. The day- it should be held separately from to-day management of the Duchy other Crown possessions, remaining is undertaken by the executive always with the House of Lancaster. team who report to the Council. 4 Preserving the past, investing for the future annual report to 31st March 2019 The net revenue of the estate is standards. We are encouraging paid to the Keeper of the Privy our agricultural tenants to improve Purse for Her Majesty The Queen as the quality and productivity of the Duke of Lancaster. The Duchy is not land they farm while continuing to subject to corporation tax because protect and preserve the Duchy’s the Duchy is not a separate legal historic buildings and holdings. entity for tax purposes. However, Her Majesty The Queen voluntarily The Duchy’s business strategy is pays tax on all income received to continue to deliver sustainable from the Duchy. revenue growth while working with its tenant communities and Guiding Principles respecting at all times its unique John of Gaunt, 2nd Duke of The Duchy of Lancaster is a historic heritage and values. It is a strategy Lancaster. organisation with a keen eye on which is continually reviewed and the future. Our role is to ensure an updated in response to market appropriate balance between changes to ensure that the an ongoing commitment to our business remains appropriately tenants and the communities in focused and balanced. which we operate and the long- There are many national term sustainability of our land and heritage properties within the property assets. This means acting Duchy including ten castles, responsibly, investing prudently from Lancaster in the North to and delivering effectively on clear Ogmore in the South. While most commercial objectives. of these are leased or entrusted As a major owner of agricultural to guardians responsible for land and areas of outstanding managing visitor access, the natural beauty across England Duchy maintains a watching brief and Wales, the Duchy has a over the upkeep and restoration of responsibility to protect and these historic monuments. preserve this natural capital The rural and urban estates also for future generations. Our include a number of residential partnership with our agricultural development sites. These tenants extends beyond the developments are subject to the contractual and includes the Duchy’s own Design Standard to provision of professional support ensure that, wherever possible, the and guidance. Land use is highest standards of construction monitored and investment in new and specification are achieved. technologies and energy sources actively encouraged. Working with tenants and partners across England and Wales, the Particular areas of focus this Duchy Council is happy to support year have included developing diversification and innovation as a a greater understanding of the means of safeguarding the stability biodiversity across our rural estates, and long-term sustainability of the sharing best practice around estate as a whole. responsible soil management and improving farm presentation Preserving the past, investing for the future 5 annual report to 31st March 2019 The Surveys Rural includes the smaller Marbury Minerals The historic Rural Surveys were estate which lies on the realigned in 2015 to more Cheshire/Shropshire border. The Duchy has an extensive mineral closely reflect their geographic Centred on the historic properties portfolio which extends from South boundaries and the profile of of Crewe Hall and Crewe Hall Wales to North Yorkshire. It consists of their local communities: Cheshire, Farm, the Crewe estate extends limestone and sandstone quarries which Lancashire, Staffordshire and supply material to the UK construction to 1,402 hectares, stretching Yorkshire. The Duchy’s Lincolnshire sector; and a mine supplying gypsum to from the edge of the town to the assets are combined with those in the cement industry. M6 at Junction 16. There are 11 Derbyshire, Northamptonshire and main farms on the estate which South Wales to form the Southern are involved in dairy, arable Survey. and livestock production as well In 2017, we started to bring the as equestrian businesses and management of all the Surveys in woodlands. At Crewe Hall Farm house. This process has now been the Duchy has created a highly successfully completed and all our sought-after business address, Rural Surveys are now overseen with nine companies in flexible by a multi-disciplinary team of office suites of varying sizes rural surveyors, estate managers, surrounded by views of the open building surveyors and rural countryside. accountants based in our London The estate also includes a and Lancaster offices. residential lettings portfolio of 75 rural cottages and • Cheshire farmhouses, as well as a roadside The Cheshire Survey is largely Service Area and a number of made up of the Crewe estate potential future development to the south of the county and opportunities.
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