Report and accounts of the Duchy of Lancaster for the year ended 31 March 2014 The Duchy of Lancaster Annual Report 2014 The Duchy seeks to achieve a balance between long-term commitments to the environment, social responsibility, and commercial objectives. This approach helps to protect the interests of those individuals living in, working on and visiting the Duchy’s land and buildings while safeguarding the estate for future generations. I would like to welcome Nathan Thompson who joined the Duchy as Chief Executive Officer in 2013. Nathan has a wealth of experience in senior property roles and will certainly make a very valuable contribution. I would also like to thank both Council and all the Duchy staff for their continued loyalty, hard work and enthusiasm over the year. Shuttleworth Chairman Cover story Cover photograph: John O’Gaunt Gate, Lancaster Castle. The John O’Gaunt Gate was opened to the public in 2013 for the first time in centuries. Annual Report Report and accounts of the Duchy of Lancaster for the year ended 31 March 2014 Presented to Parliament pursuant to Section 2 of the Duchies of Lancaster and Cornwall (Accounts) Act 1838. 1 The Duchy of Lancaster Annual Report 2014 Goathland Moors Yorkshire 2 Introduction The Duchy of Lancaster is a private estate owned by Her The Estate Majesty The Queen, as Duke of Lancaster. The rural estate The rural estate comprises commercial, agricultural and consists of 18,454 hectares of land in England and Wales. residential property the majority of which are in Lancashire, Yorkshire, Cheshire, Staffordshire and Lincolnshire. History Additionally the Duchy has a significant commercial Henry Grosmont succeeded his father Henry, 3rd Earl of property portfolio largely in the Savoy precinct off the Lancaster, to the Lancastrian earldom in 1345. One of the Strand in London, a portfolio of financial investments and a most celebrated noblemen of his day, Henry was also a small urban residential portfolio. diplomat, administrator and soldier who took part in many of Edward III’s military campaigns on the continent. Our Values To reward him for his chivalric achievements Edward III The Duchy of Lancaster is an ancient organisation with a created Henry 1st Duke of Lancaster on the 6th March firm commitment to the future. The management of the 1351 “in recognition of astonishing deeds of prowess and Duchy’s assets is undertaken with the objective of providing feats of arms”. a sustainable and growing income to Her Majesty, Duke of Lancaster, while preserving capital for the benefit of future In the same charter, Edward III raised Lancaster to a County Dukes, and conserving the land for tenants and visitors. Palatine for Henry’s lifetime. This meant that the new Duke had sovereign rights in the county in the spheres of As a landlord, the Duchy aspires to the highest standards justice and administration. The law courts in Lancashire of sustainability. The partnership between the Duchy and were under the Duke’s administration and he appointed its agricultural tenants extends beyond the contractual and the sheriff, judges, justices of the peace and other senior experienced advice is available for individual tenants from officials. In medieval England Palatinate powers were local managing agents, the Rural Surveyor of Lands and devolved royal powers for use in regions where central other members of the Duchy’s London-based office. government was difficult. Some of these powers still exist today. Duchy lands include areas of outstanding natural beauty and the Duchy endeavours to protect the quality of its In 1399 Henry Bolingbroke succeeded as Duke of Lancaster land while respecting the commercial needs of tenants. and returned from exile in France to claim his inheritance Land use is monitored by the Duchy’s managing agents and shortly afterwards, the Crown. One of his first actions to ensure that activities will not impair soil quality and a as Henry IV was to promote a Charter, dated 14th October number of farms have adopted organic farming methods. 1399, the object of which was to keep separate the estates Sustainability in energy and resources is encouraged by the of the Crown from those of the Duchy. This Charter, Duchy. granted in Parliament, established the Duchy as a separate inheritance of the Monarch which it continues to be to this As a major owner of agricultural land, the Duchy of day. In 1461 a further Charter was granted which remains Lancaster has a long-term commitment to the rural the authority for the powers which the Duchy has to community. Although the strategy and asset allocation administer itself and to deal with its assets. of the Duchy’s portfolio are subject to continual review, the Duchy remains committed to supporting its core rural 3 The Duchy of Lancaster Annual Report 2014 Introduction continued estates at all times. It actively seeks ways in which it can present Duke retains a keen interest. The net revenues support diversification to create sustainable rural estates. of the estate are paid to the Keeper of the Privy Purse for Her Majesty, The Queen. The Duchy is not subject to The Duchy includes many historic properties. Most of its corporation tax because it is not a separate legal entity for ten castles are leased or entrusted to guardians responsible tax purposes. However, Her Majesty The Queen voluntarily for managing visitor access. On rural holdings, tenants are pays income tax on the income which She receives from aware of their statutory responsibility for maintaining public the Duchy. footpaths and keeping bridleways open for public access. Seven centuries after it began, today’s Duchy is a modern, Today landed estate looking confidently towards the future with The Duchy’s management of its property portfolio, financial the aim of ensuring that this unique and historic institution investments and the discharge of its administrative remains in existence for centuries to come. duties associated with the Duchy’s Palatine rights and responsibilities in Lancashire, Merseyside and Greater Manchester is subject to the supervision of the Chancellor of the Duchy of Lancaster and the Council although the Shire Court, Lancaster Castle 4 The Surveys Within the Duchy of Lancaster there are five rural surveys, an urban survey as well as commercial foreshore and mineral interests. Lancashire The Duchy of Lancaster has ancient and extensive associations with the County Palatine of Lancashire, with the historic Lancaster Castle at its heart. The Lancashire Survey extends to 3,900 hectares in total, comprising four rural estates. Myerscough, north of Preston, has been owned since the 13th century. Wyreside, Salwick and Whitewell were purchased by the Duchy of Lancaster a little later. Whitewell is the largest estate by area (2,400 hectares) and lies within the Forest of Bowland and is recognised as an Area of Outstanding Natural Beauty. The Inn at Whitewell Hotel lies on the estate, and the Duchy’s first holiday cottage in Lancashire Inn at Whitewell, Lancashire has recently been completed at Root Farm, Dunsop Bridge. livestock farming and also has the largest area of woodland The Lancashire Estates include livestock-based farms as well as on the Yorkshire Survey. The Pontefract Estate lies on the over 50 houses and cottages. edge of town and consists of a single large farm and several commercial properties. Yorkshire The Yorkshire Survey covers 6,800 hectares across four main Historic properties on the Yorkshire Survey include Pickering estates, Goathland, Cloughton, Pickering and Pontefract. and Pontefract Castles which are both open to the public. Goathland which covers approximately 4,100 hectares The Duchy has recently invested in a substantial renovation includes a large area of internationally important heather programme at Scalby Lodge, converting existing farm moorland, the majority of which is a Site of Special Scientific buildings to create eleven new luxury holiday lets. Set on the Interest (SSSI). Upland grazing and grouse shooting form the North Yorkshire coastline, they complement Scalby Lodge’s majority of the tenanted interests. The moors are also featured four existing holiday cottages. in several films and television productions including Harry Potter and Heartbeat. Arable land which extends to 1,000 hectares on the beautiful Yorkshire coast, makes up the majority of the Cloughton Estate. Properties on the estate include pubs, a restaurant and residential. The Pickering Estate is home to a mix of arable and 5 The Duchy of Lancaster Annual Report 2014 The Surveys continued Crewe and South The Crewe and South Survey encompasses a diverse range of properties extending from the Peak District in the North, across to Lincolnshire and to the Vale of Glamorgan in South Wales. The principal estate at Crewe in Cheshire extends to 1,380 hectares. The estate is centred on historic Crewe Hall and in addition to farms and cottages retains commercial properties including Crewe Hall Farm offices which were converted by the Duchy from traditional farm buildings. The second largest estate is centred on Higham Ferrers in Northamptonshire and consists mainly of arable farms. Higham Ferrers was part of the original inheritance, given by Henry III to his son Edmund in 1266. The estate was subsequently extended by the purchase of two additional farms. It also includes an 18-hole golf course and a Vocational Skills Academy. This was developed jointly by Tutbury Castle, Needwood the Duchy and Moulton College and offers education in plumbing and bricklaying. The Survey today comprises a mix of arable, dairy, In South Wales, the Ogmore Estate consists of more than sheep and beef farms with some residential and 1,500 hectares and includes an active limestone quarry, a commercial property. Castle and a golf course. There are currently over 60 let houses on the estate, whilst At Castleton in the Peak District the Duchy owns 114 the commercial activity encompasses a diverse mix of uses hectares of grazing land as well as Peveril Castle, the Peak including a saw mill, equestrian centres, offices and a Cavern tourist attraction and historic mineral rights under a private airfield.