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Report and Accounts Year Ended 31St March 2018 Report and Accounts Year ended 31st March 2018 Preserving the past, investing for the future annual report to 31st March 2018 Annual Report Report and accounts of the Duchy of Lancaster for the year ended 31 March 2018 Presented to Parliament pursuant to Section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838. annual report to 31st March 2018 The Whitewell estate in Lancashire. annual report to 31st March 2018 Introduction The Duchy of Lancaster is a private History estate owned by Her Majesty The In 1265, King Henry III gifted to his Queen as Duke of Lancaster. It has son Edmund the baronial lands of been the personal estate of the Simon de Montfort. A year later, reigning Monarch since 1399 and is he added the estate of Robert held separately to all other Crown Ferrers, Earl of Derby and then the possessions. ‘honor, county, town and castle of Lancaster’, giving Edmund the new The ancient inheritance began title of Earl of Lancaster. over 750 years ago. Historically, its growth was achieved via legacy, In 1267, Edmund also received alliance and confiscation. In from his father the manor of Her Majesty The Queen, Duke of more modern times, growth and Newcastle-under-Lyme in Lancaster. diversification has been delivered Staffordshire, together with lands through active asset management. and estates in both Yorkshire and Lancashire. This substantial Today, the estate covers 18,485 inheritance was further added to 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 and a Minerals Survey, together Edmund’s inheritance passed to with a growing 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. His lands across the country. and titles eventually passed to his Young Pony Club riders meet Her Majesty at Eland Lodge Equestrian Centre, Needwood estate. Preserving the past, investing for the future 3 annual report to 31st March 2018 Introduction continued brother Henry and on his death to should be held. He specified that Henry’s son, Henry Grosmont, on it should be held separately from whom Edward III in 1351, conferred other Crown possessions, remaining the title of Duke of Lancaster ‘in always with the House of Lancaster. recognition of (his) astonishing deeds of prowess and feats of After the War of the Roses, arms’ of this celebrated diplomat however, the bloodline of the and soldier. historic Lancastrian kings was broken and Edward IV of York Edward III also raised Lancaster to became King in 1461, taking a County Palatine for the duration possession of Henry VI’s forfeited of Henry’s life. Palatinate powers estates. By Act of Parliament, were devolved royal powers Edward IV ‘incorporated’ the for use in regions where central Duchy, declaring that the government was difficult. These Lancaster inheritance should devolved powers gave the Duke descend through the Monarchy of Lancaster administrative control as a private estate to be held “for Henry Grosmont, Duke of of the law courts and the right to ever to us and our heirs, Kings of Lancaster. appoint the sheriff, judges, justices England, separate from all other of the peace and other senior Royal possessions.” officials serving the County. Some 300 years later, under the When Henry Grosmont died in Crown Lands Act 1702, it was 1361, the inheritance became part provided that the Sovereign should of his daughter Blanche’s dowry. only receive income and not She had married one of Edward III’s capital from the Duchy. sons, John of Gaunt, in 1359. And so it remains to this day. John was made 2nd Duke of Lancaster in 1362 and persuaded The Duchy Today his father Edward III to grant the Seven hundred and fifty years Palatinate powers to him and his on, the Duchy of Lancaster heirs permanently. remains largely the same in terms of its land and historic property When John died in 1399, King holdings. However, as a modern Richard II confiscated the landed estate, it also includes a Lancaster inheritance and diverse portfolio of office, retail banished John’s son, Henry and industrial property, as well as Bolingbroke, from England for life. development land. Within the year, Henry Bolingbroke returned from exile, raised an army The management of the property and forced Richard to abdicate. portfolio, financial investments He ascended to the throne as and the discharge of the Henry IV in October 1399. Duchy’s administrative duties associated with its Palatinate One of Henry’s first acts as King rights and responsibilities in was to stipulate the conditions on Lancashire, Merseyside and which the Lancaster inheritance Greater Manchester is overseen 4 Preserving the past, investing for the future annual report to 31st March 2018 by the Chancellor of the Duchy of our tenants improve the quality Lancaster and the Duchy Council, and productivity of the land, while although the present Duke retains continuing to care for and respect a keen interest. the Duchy’s historic assets. The net revenue of the estate is Our commercial strategy is to paid to the Keeper of the Privy continue to deliver revenue growth Purse for Her Majesty the Queen as while working with our tenant Duke of Lancaster. The Duchy is not communities and respecting at all subject to corporation tax because times our heritage and our values. the Duchy is not a separate legal It is a strategy which is continually entity for tax purposes. However, reviewed and updated in response Her Majesty the Queen is subject to the market cycle so that we to tax on all income received from maintain a sustainable business for the Duchy. the long term. Guiding Principles The Duchy includes many national heritage properties, including The John O’Gaunt Gate, Lancaster The Duchy of Lancaster is a historic ten castles from Lancaster in Castle. organisation with a keen eye on the North to Ogmore in the the future. Our role is to ensure an South. Most of these are leased appropriate balance between or entrusted to guardians long-term commitment to our responsible for managing visitor tenants and the communities in access. The Duchy maintains an which we operate and the long- active watching brief over the term sustainability of our land and maintenance and restoration property assets. This means acting of these historic monuments as responsibly, investing prudently appropriate. and delivering effectively on clear commercial objectives. The Estates include a number of residential development sites. As a major owner of agricultural These are subject to the Duchy’s land and areas of outstanding own Design Standard to ensure natural beauty, the Duchy takes that, wherever possible, the great care to ensure environmental highest standards of construction sustainability across the estates. and specification are achieved. The partnership between the Working with tenants and partners Duchy and its agricultural tenants across England and Wales, the extends beyond the contractual Duchy Council is happy to support and includes the provision of diversification and innovation as a experienced support and advice. means of safeguarding the stability Land use is monitored and and long-term sustainability of the investment in new technologies estate as a whole. and energy sources actively encouraged. This year we are particularly looking at farm presentation standards and soil management techniques to help Preserving the past, investing for the future 5 annual report to 31st March 2018 The Surveys Rural estate which lies on the Minerals The historic Rural Surveys were Cheshire/Shropshire border. realigned in 2015 to more Centred on the historic properties The Duchy has an extensive mineral closely reflect their geographic of Crewe Hall and Crewe Hall portfolio which extends from South boundaries and the profile of Farm, the Cheshire estate Wales to North Yorkshire. It consists of their local communities: Cheshire, extends to 1,402 hectares, limestone and sandstone quarries, which Lancashire, Staffordshire and supply material to the UK construction stretching from the edge of Yorkshire. The Duchy’s Lincolnshire sector; and a mine supplying gypsum to the town to the M6 at Junction assets are combined with those in the cement industry. 16. There are 10 main farms on Derbyshire, Northamptonshire and the estate which are involved South Wales to form the Southern in dairy, arable and livestock Survey which is managed in-house. production, as well as equestrian In 2017, the decision was taken businesses and woodlands. At to bring the management of Crewe Hall Farm the Duchy two more of the Duchy’s historic has created a highly sought- Surveys in house: Lancashire and after business address, with nine Yorkshire. These are overseen companies in flexible office suites by a multi-disciplinary team of of varying sizes surrounded by chartered surveyors, building views of the open countryside. surveyors and rural accountants The estate also includes a based in the Duchy’s new Northern residential lettings portfolio office at Lancaster Castle. of 76 rural cottages and farmhouses, as well as a roadside • Cheshire Service Area and a number of The Cheshire Survey is largely potential future development made up of the Crewe estate opportunities. to the south of the county and includes the smaller Marbury The smaller Marbury estate, on the Shropshire border, consists of a single dairy farm and five residential properties let to local people. • Lancashire The Lancashire Survey extends to 3,840 hectares in total, comprising four rural estates: Myerscough, Salwick, Whitewell and Wyreside. The Duchy has owned Myerscough since the 13th century.
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