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Report and Accounts Year Ended 31St March 2020 Report and Accounts Year ended 31st March 2020 Preserving the past, investing for the future Bluebells in Dunsop Wood, Dunsop Bridge, Lancashire. annual report to 31st March 2020 Annual Report Report and accounts of the Duchy of Lancaster for the year ended 31 March 2020 Presented to Parliament pursuant to Section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838. annual report to 31st March 2020 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, its growth was achieved via In 1267, Edmund also received 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 18,228 inheritance was further enhanced Her Majesty The Queen, Duke of by Edmund’s mother, Eleanor of hectares of rural land divided into Lancaster. five Surveys: Cheshire, Lancashire, Provence, who bestowed on him Southern, Staffordshire and the manor of the Savoy in 1284. Yorkshire. It also includes Foreshore Edmund’s inheritance passed to ownerships, a Minerals Survey and his son Thomas, Earl of Lancaster a significant Urban Survey which who was executed in 1322 by King is made up of a number of office, Edward II for rebellion. Thomas’ retail and industrial properties lands and titles were forfeited but across the country. eventually passed to his brother Henry and on his death to Henry’s The brass measuring dish presented to the Barmote Court in Wirksworth, Derbyshire by Henry VIII in 1512. Preserving the past, investing for the future 3 annual report to 31st March 2020 Introduction continued son, the celebrated diplomat and However, after the War of the soldier Henry Grosmont, on whom Roses, the bloodline of the historic Edward III conferred the title of Lancastrian kings was broken Duke of Lancaster ‘in recognition and Edward IV of York became of (his) astonishing deeds of King in 1461, taking possession prowess and feats of arms’ in 1351. of Henry VI’s forfeited estates. By Act of Parliament, Edward Edward III also raised Lancaster IV ‘incorporated’ the Duchy, to the status of a County Palatine declaring that the Lancaster for the duration of Henry’s life. Palatinate powers were devolved inheritance should descend royal powers for use in regions through the Monarchy as a private where central government was estate to be held ‘for ever to us difficult. These devolved powers and our heirs, Kings of England, gave the Duke of Lancaster separate from all other Royal administrative control of the law possessions.’ courts and the right to appoint Some 300 years later, under the the sheriff, judges, justices of the Crown Lands Act 1702, it was peace and other senior officials provided that the Sovereign Coat of arms of John O’Gaunt, serving the County. Duke of Lancaster. 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 a grant the Palatinate powers to him and his heirs permanently. modern portfolio, its assets include office, retail and industrial property, When John died in 1399, King as well as development land. Richard II confiscated the 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 2020 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 The Duchy of Lancaster is a historic heritage and values. It is a strategy 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. Lancaster Castle’s imposing John which we operate and the long- O’Gaunt gate. term sustainability of our land and There are many national property assets. This means acting heritage properties within the responsibly, investing prudently Duchy including ten castles, and delivering effectively on clear from Lancaster in the north to commercial objectives. Ogmore in the south. While most 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 for future generations. Our The rural and urban estates also partnership with our agricultural include a number of development tenants extends beyond the sites. These developments are contractual and includes the subject to the Duchy’s own Design provision of professional support Standard to ensure that, wherever and guidance. Land use is possible, the highest standards of monitored and investment in new construction and specification are technologies and energy sources achieved. actively encouraged. Working with tenants and partners Particular areas of focus this across England and Wales, year have included developing the Duchy Council is happy to a greater understanding of the support strategic diversification biodiversity across our rural estates, and innovation as a means of sharing best practice around safeguarding the stability and long- responsible soil management term sustainability of the estate as and improving farm presentation a whole. Preserving the past, investing for the future 5 annual report to 31st March 2020 The Surveys Rural Marbury Estate which lies on the Minerals The historic Rural Surveys were Cheshire/Shropshire border. realigned in 2015 more closely Centred on the historic properties The Duchy has an extensive mineral to reflect their geographic of Crewe Hall and Crewe Hall portfolio which extends from South boundaries and the profile of Farm, the Crewe Estate extends Wales to North Yorkshire. It consists of their local communities: Cheshire, to 1,522 hectares, stretching limestone and sandstone quarries which Lancashire, Staffordshire and supply material to the UK construction from the edge of the town to the Yorkshire. The Duchy’s Lincolnshire sector and a mine supplying gypsum to M6 at Junction 16. There are 11 assets are combined with those in the cement industry. main farms on the estate which Derbyshire, Northamptonshire and are involved in dairy, arable South Wales to form the Southern and livestock production as well Survey. as equestrian businesses and woodlands. At Crewe Hall Farm In 2017, we started to bring the the Duchy has created a highly management of all five Surveys in sought-after business address, house. This process has now been with eight companies in flexible successfully completed and the office suites of varying sizes Rural Surveys are now overseen surrounded by views of the open by a multi-disciplinary team of countryside. rural surveyors, estate managers, building surveyors and rural The estate also includes a accountants based in our London residential lettings portfolio and Lancaster offices. of 66 rural cottages and farmhouses, as well as a roadside • Cheshire service area and a number of The Cheshire Survey extends potential future development to 1,557 hectares and is made up opportunities.
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