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Report and Accounts Year ended 31st March 2016 Preserving the past, investing for the future annual report to 31st March 2016 Annual Report Report and accounts of the Duchy of Lancaster for the year ended 31 March 2016 Presented to Parliament pursuant to Section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838. annual report to 31st March 2016 River Hodder, Whitewell Estate, Lancashire. annual report to 31st March 2016 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, he reigning Monarch since Henry IV in added the estate of Robert Ferrers, 1399 and is held separately to all other Earl of Derby and then the ‘honor, Crown possessions. county, town and castle of Lancaster’, giving Edmund the new title of Earl of The ancient inheritance began over Lancaster. 750 years ago. Historically, its growth was achieved via legacy, alliance In 1267, Edmund also received from his and appropriation. In more modern father the manor of Newcastle-under- times, growth has been delivered Lyme in Staffordshire, together with through active asset management. lands and estates in both Yorkshire and Lancashire. This substantial Her Majesty The Queen, Today, the estate covers 18,542 inheritance was further added to Duke of Lancaster. hectares of rural land divided into by Edmund’s mother, Eleanor of five Surveys: Cheshire, Lancashire, Provence, who bestowed on him the Southern, Staffordshire and Yorkshire. manor of the Savoy in 1284. It also includes Foreshore, Minerals and an Urban Survey which is made up of Edmund’s inheritance passed to his a number of office, retail and industrial son Thomas, Earl of Lancaster who was properties across the country. executed in 1322 by King Edward II for Royal Visit to Myerscough Estate, Lancashire, May 2015. Preserving the past, investing for the future 3 annual report to 31st March 2016 Introduction continued rebellion. His lands and titles eventually One of Henry’s first acts as King was passed to his brother Henry and on his to stipulate the conditions on which death to Henry’s son, Henry Grosmont, the Lancaster inheritance should who was a celebrated diplomat and be held, specifying that it should be soldier. In 1351 Edward III conferred on held separately from all other Crown him the title of Duke of Lancaster ‘in possessions, and should descend recognition of (his) astonishing deeds through the Monarchy as a private The origins of the Duchy of prowess and feats of arms’. estate. of Lancaster date back to 1265. Edward III also raised Lancaster to a Some 300 years later, under the Crown County Palatine for the duration of Lands Act 1702, it was provided that Henry’s life. Palatinate powers were the Sovereign should only receive devolved royal powers for use in income and not capital from the regions where central government Duchy. was difficult. These devolved powers gave the Duke of Lancaster And so it remains to this day. administrative control of the law courts and the right to appoint the The Duchy Today sheriff, judges, justices of the peace Seven hundred and fifty years on, the and other senior officials serving the Duchy of Lancaster remains largely County. the same in terms of its land and historic property holdings. However, When Henry Grosmont died in 1361, as a modern landed estate, it also the inheritance became part of his includes a diverse portfolio of office, daughter Blanche’s dowry. She had retail and industrial property. married one of Edward III’s sons, John of Gaunt, in 1359. Responsibility for the management of the portfolio and the discharge John was made 2nd Duke of of the Duchy’s administrative duties Lancaster in 1362 and persuaded associated with its Palatinate rights his father Edward III to grant the and responsibilities in Lancashire, Palatinate powers to him and his heirs Merseyside and Greater Manchester permanently. has been delegated by the Chancellor of the Duchy of Lancaster When John died in 1399, King to the Duchy Council, although the Richard II confiscated the Lancaster present Duke retains a keen interest. inheritance and banished John’s son, Henry Bolingbroke, from England for life. Within the year, Henry Bolingbroke returned from exile, raised an army and forced Richard to abdicate. He ascended to the throne as Henry IV in October 1399. 4 Preserving the past, investing for the future annual report to 31st March 2016 The net revenue of the estate is paid Our commercial strategy is to deliver to the Keeper of the Privy Purse for revenue growth while working with our Her Majesty the Queen as Duke of tenant communities and respecting at Lancaster. The Duchy is not subject all times our heritage and our values. to corporation tax because it is not a It is a strategy which is continually separate legal entity for tax purposes. reviewed and updated in response to However, Her Majesty the Queen the cyclicality of markets so that we The Duchy is committed to voluntarily pays tax on the income maintain a sustainable business for the environmental sustainability which She receives from the Duchy. long term. across its rural estates. Guiding Principles The Duchy owns many historic properties, including ten castles from Preserving the past, investing for the Lancaster in the North to Ogmore in future the South. Most of these are leased or entrusted to guardians responsible for The Duchy of Lancaster is a historic managing visitor access. The Duchy organisation with a keen eye on maintains an active watching brief the future. Our role is to ensure an over the maintenance and restoration appropriate balance between long- of these historic monuments as term commitment to our tenants, the appropriate. communities in which we operate and the long-term sustainability of our The estates include a number of sites land and property assets. This means with potential for development. These acting responsibly, investing prudently are subject to the Duchy’s own Design and delivering effectively on clear Standard to ensure that, wherever commercial objectives. possible, the highest standards of construction and specification are As a major owner of agricultural achieved. Working with tenants and land and areas of outstanding partners across England and Wales, natural beauty, the Duchy takes the Duchy Council is happy to support great care to ensure environmental diversification and innovation as a sustainability across the estates. The means of safeguarding the stability partnership between the Duchy and and long-term sustainability of the its agricultural tenants extends beyond estate as a whole. the contractual, which includes the provision of experienced support and advice. Land use is monitored with investment in new technologies and energy sources actively encouraged. Preserving the past, investing for the future 5 annual report to 31st March 2016 The Surveys Rural arable and livestock production, as Minerals The historic Rural Surveys were well as equestrian businesses and realigned in 2015 to more closely woodlands. At Crewe Hall Farm the The Duchy has an extensive reflect their geographic boundaries Duchy has created a highly sought- mineral portfolio which and the profile of their local after business address, with 10 extends from South Wales communities: Cheshire, Lancashire, companies in flexible office suites of to North Yorkshire. It consists Staffordshire and Yorkshire. The varying sizes surrounded by views of of limestone and sandstone quarries, which supply material Duchy’s Lincolnshire assets are the open countryside. to the UK construction sector; combined with those in Derbyshire, and a mine supplying gypsum Northamptonshire and South Wales The estate also includes a residential to the cement industry. to form the Southern Survey which is lettings portfolio of 74 rural managed in-house. cottages and farmhouses, as well as a roadside Service Area and • Cheshire a number of potential residential The Cheshire Survey is largely made and commercial development up of the Crewe estate to the south opportunities. of the county and includes the smaller Marbury estate which lies on The smaller Marbury estate, on the Cheshire/Shropshire border. the Shropshire border, consists of a single dairy farm and five residential Centred on the historic properties properties. of Crewe Hall and Crewe Hall Farm, the Crewe estate extends to 1,380 • Lancashire hectares, stretching from the edge The Lancashire Survey extends to of the town to the M6 at Junction 3,849 hectares in total, comprising 16. There are 10 main farms on the four rural estates: Myerscough, estate which are involved in dairy, Salwick, Whitewell and Wyreside. Coronation Wood, Crewe Estate, Cheshire. 6 Preserving the past, investing for the future annual report to 31st March 2016 Foreshore The Duchy of Lancaster’s ancient Foreshore runs from the River Mersey in the south, to Barrow-in-Furness in the north. It includes 85 individual lettings in total, including moorings, pipe bridges and outfall structures, wild fowling licences, sheep and cattle grazing agreements on coastal marshes, sub-sea pipelines and fibre-optic cables. Newborough Hall Farm, Needwood Estate, Staffordshire. The Duchy has owned Myerscough are clustered around picturesque since the 13th century. There are six villages such as Dunsop Bridge, principal agricultural holdings on the while the commercial interests 598-hectare estate, including three include office units, a garage, post which form part of the renowned office, village store, café and hotel/ agricultural training centre at restaurant. Myerscough College. Six residential properties and six commercial The Wyreside estate covers some lettings are also part of the estate. 275 hectares, including one main agricultural holding and four The 535-hectare Salwick estate is residential properties.
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