Framework Document between The Scottish Government and Crown Estate Scotland

1. Functions, duties and powers

1.1 Founding Legislation; Status

In November 2014 The Smith Commission recommended that responsibility for the management of the Crown Estate’s economic assets in Scotland, and the revenue generated from these assets, should be transferred to the Scottish Parliament.

The Scotland Act 2016 (“the 2016 Act”) established a Crown Estate Scotlands for devolution of the management of The Crown Estate’s assets in Scotland, and the net revenue profit generated from these assets to the Scottish Parliament. As part of this Crown Estate Scotlands, the 2016 Act allowed for the Treasury to make a scheme transferring all the Scottish functions of the Crown Estate Commissioners to the Scottish Ministers or a body nominated by them via a statutory instrument.

Crown Estate Scotland (Interim Management), which was created via The Crown Estate Scotland (Interim Management) Order 2017 (“the 2017 Order”), was nominated by the Scottish Ministers to receive the transfer. The Scottish functions of the Crown Estate Commissioners were transferred to Crown Estate Scotland (Interim Management) via the Crown Estate Transfer Scheme 2017.

The Scottish Crown Estate Act 2019 (“the 2019 Act”) makes provision in section 1 to rename Crown Estate Scotland (Interim Management) as Crown Estate Scotland and makes provision about the management of the Scottish Crown Estate.

1.2 The Functions, Duties and Powers of Crown Estate Scotland

As a manager of the Scottish Crown Estate, Crown Estate Scotland has a duty under Section 7 of the 2019 Act to maintain and seek to enhance the value of the assets and the income arising from them. In complying with that duty, the manager must act in the way best calculated to further the achievement of sustainable development in Scotland and must seek to manage the assets in a way that is likely to contribute to the promotion or the improvement in Scotland of economic development, regeneration, social wellbeing and environmental wellbeing.

In accordance with section 1(2) the Civil List Act 1952, the payment of hereditary revenues from the Scottish crown assets are to be paid into the Scottish Consolidated Fund.

Crown Estate Scotland’s strategic aims must be aligned to support the Scottish Government’s purpose of creating a more successful country, with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive economic growth. Scottish Ministers expect Crown Estate Scotland to do this by aligning its aims and objectives with the Scottish Government’s published Programme for Government, Economic Strategy and National Performance Framework.

In fulfilling these functions Crown Estate Scotland should consult and work in partnership with the appropriate bodies, most notably with enterprise agencies, local authorities, community representatives, conservation groups and any other asset manager and publicly owned energy investment body. Crown Estate Scotland may agree Memoranda of Understanding with these and other organisations.

1.3 Classification

For policy/administrative purposes Crown Estate Scotland is classified as a Public Corporation.

For national accounts purposes Crown Estate Scotland is classified to the public corporations sector.

References to Crown Estate Scotland include, where appropriate, all its subsidiaries and joint ventures that are classified to the public sector for national accounts purposes. If such a subsidiary or joint venture is created, there shall be a document that follows the principles set out in this document and (where practicable) the procedures set out here noting the arrangements between it and Crown Estate Scotland.