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Duchy of Lancaster

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Duchy of Lancaster
Creation date6 March 1351 (673 years ago)
Created byEdward III
First holderHenry of Grosmont
Present holderCharles III
Heir apparentWilliam, Prince of Wales

The Duchy of Lancaster is an estate of the British sovereign. The estate has its origins in the lands held by the medieval Dukes of Lancaster, which came under the direct control of the monarch when Henry Bolingbroke, the then duke of Lancaster, ascended the throne in 1399.[1][2] In 1461 King Edward IV confirmed that the Duchy would be inherited by the monarch, but held separately from the Crown Estate, the other assets which belong to the monarch.

The Duchy consists of a portfolio of lands, properties, and assets held in trust for the sovereign. The principal purpose of the estate is to provide a source of independent income.[2][3] The Duchy consists of 18,433 ha (45,550 acres) of land holdings, including rural estates and farmland, urban developments, historic buildings, and commercial properties across England and Wales, particularly in Cheshire, Staffordshire, Derbyshire, Lincolnshire, Yorkshire, Lancashire, and the Savoy Estate in London.[4] As of the financial year ending 31 March 2022, the estate was valued at £652.8 million.[5] The net income of the duchy is paid to the reigning sovereign and amounts to about £24 million per year.[2][5]

The Duchy exercises some powers and ceremonial duties of the Crown in the historic county of Lancashire,[6] which includes the current ceremonial counties of Lancashire, Greater Manchester, and Merseyside, as well as the Furness area of Cumbria. The Duchy of Lancaster is one of two royal duchies: the other is the Duchy of Cornwall, which provides income to the Duke of Cornwall, a title which is held by the monarch's oldest son.

History

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Lancashire County Palatine shown within England; this map does not correspond to the landholdings of the Duchy of Lancaster, however.

As the Lancaster inheritance, the estate dates to 1265, when Henry III granted his younger son, Edmund Crouchback, lands forfeited by Simon de Montfort, Earl of Leicester.[7] In 1266, the estates of Robert de Ferrers, 6th Earl of Derby,[8] another protagonist in the Second Barons' War, were added. In 1267 the estate was granted as the county, Honour and Castle of Lancaster.[7] In 1284 Edmund was given the Manor of Savoy near London by his mother, Eleanor of Provence, the niece of the original grantee, Peter II, Count of Savoy.[7] Edward III raised Lancashire into a county palatine in 1351, and the holder, Henry of Grosmont, Edmund's grandson, was created Duke of Lancaster.[7] After his death a charter of 1362 conferred the dukedom on his son-in-law John of Gaunt, Earl of Lancaster, and the heirs male of his body lawfully begotten forever.[7]

In 1399 the Duchy of Lancaster, held by John of Gaunt's son Henry of Bolingbroke, merged with the crown on his appropriation of the throne (after the dispossession from Richard II). His first act as Henry IV was to declare that the Lancastrian inheritance be held separately from the other possessions of the Crown and should descend to male heirs.[7] This separation of identities was confirmed in 1461 by Edward IV when he incorporated the inheritance and the palatinate responsibilities under the title of the Duchy of Lancaster, and stipulated that it be held separate from other inheritances by him and his heirs, but would however be inherited with the Crown, to which it was forfeited on the attainder of Henry VI.[9] The duchy thereafter passed to the reigning monarch. On the death of King Charles I, the duchy came under the control of Parliament; this lasted until the restoration of King Charles II in 1660.[10] In 1760, its separate identity preserved it from being surrendered with the Crown Estates in exchange for the civil list. It is primarily a landed inheritance belonging to the reigning sovereign (now Charles III). When George III surrendered his income from Crown lands in exchange for the Civil List, the Duchy of Lancaster was not mentioned at all as it was bankrupt for most of the century, due to previous monarchs selling its assets or granting leases for political favours.[11] The monarch now does not have the right to sell off the capital assets for personal gain.[10]

In 1830, the Whigs argued that revenues from the two duchies of Lancaster and Cornwall should go to the public, but to secure King William IV's support for the Reform Act 1832 they eventually approved the civil list and left the duchies in possession of the royal family.[11] Parliament debated the two duchies' ownership multiple times, including when Queen Victoria and King Edward VII ascended the throne, respectively.[11] In 1936, leader of the opposition Clement Attlee introduced an amendment to the civil list bill which would have seen the duchies surrendered in exchange for an adjusted annual sum of money tied to the actual cost of royal functions, but the amendment was defeated.[11] In 1971, a private member's bill to nationalise the duchy was defeated, but more than 100 MPs supported it.[10]

In 2011, the duchy established a rebalancing asset plan[clarification needed] and sold most of the Winmarleigh estates farms in Lancashire, and donated a plot of land to the Winmarleigh Village Hall committee by June 2012.[12][13]

In 2017, the Paradise Papers revealed that the duchy held investments in two offshore financial centres, the Cayman Islands and Bermuda. Both are British Overseas Territories of which Queen Elizabeth II was monarch. Labour Party Leader Jeremy Corbyn posited that the Queen should apologise, saying that anyone who keeps money offshore for tax avoidance purposes should "not just apologise for it, [but] recognise what it does to our society." A spokesman for the duchy said that all of their investments are audited and legitimate, and that the Queen voluntarily pays taxes on income she receives from duchy investments.[14] The duchy's investments were revealed to include First Quench Retailing off-licences and rent-to-own retailer BrightHouse.[15] The palace later stated that offshore investments had been exited by 2019.[11]

Role and administration

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The duchy is administered on behalf of the sovereign by the chancellor of the duchy of Lancaster, a government minister appointed by the sovereign on the advice of the prime minister, and by the clerk of the council.[16] The former position is sometimes held by a cabinet minister, but is always a ministerial post. For at least the last two centuries the duchy has been run by a deputy; the chancellor has rarely had any significant duties pertaining to its management but is available as a minister without portfolio and is answerable to Parliament for the effective running of the estate.[17][18][19][20]

The monarch derives the privy purse from the revenues of the duchy. The surplus for the year ended 31 March 2015 was £16 million and the duchy was valued at just over £472 million.[21] Its land holdings are not to be confused with the Crown Estate, whose revenues have been handed to the Treasury since the 18th century in exchange for the receipt of a yearly payment.

The Duchy Council's primary officers carrying out the estate's day-to-day duties are the clerk of the council of the duchy of Lancaster (the chief executive officer), the chairman of the council, and the chief finance officer.[22] The chancellor is responsible for the appointment of the steward and the barmaster of the barmote courts on behalf of the sovereign in right of the duchy.[23]

Since the Local Government Act 1972, the monarch in right of the duchy appoints the high sheriffs and lords lieutenant in Greater Manchester, Merseyside and Lancashire.[24]

Royal prerogative

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Both the duchy of Lancaster and the duchy of Cornwall have special legal rights not available to other estates held by peers or counties palatine. For example, in the United Kingdom bona vacantia ("ownerless property") is generally administered by the Crown, but within the county palatine is administered by the duchy.[25]

Holdings

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The duchy of Lancaster headquarters office in Lancaster Place, London. It flies the duchy flag.

The holdings of the duchy are divided into eight units called surveys: five rural, one urban, one foreshore and one mineral. The rural surveys make up most of the assets and area but the urban survey generates a greater income. The holdings were accrued over time through marriage, inheritance, gift and confiscation, and in modern times by purchase and sale.[4]

Surveys

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  • The Cheshire Survey[26]
    • Crewe principal estate – now 1,380 hectares (5+14 sq mi)
      • Crewe Hall Farm offices
  • The Lancashire Survey is made up of five rural estates comprising a total of 3,900 hectares (15 sq mi)[27]
  • The Staffordshire Survey – 3,000 hectares (11+12 sq mi) in Staffordshire, 60 let houses, including a saw mill, equestrian centres, offices and a private airfield, 240 hectares (600 acres) of forest[28]
  • The Yorkshire Survey – 6,800 hectares (26+14 sq mi)[29]
  • The Southern Survey – located mainly in Northamptonshire and Lincolnshire, 3,382 hectares (13 sq mi) of farm land[31]
    • Higham Ferrers estate, Northamptonshire – acquired in 1266 plus two additional farms, contains a Vocational Skills Academy, a venture with Moulton College and an 18-hole golf course. In November 2018, an agreement between the duchy and the AFC Rushden & Diamonds football club resulted in land set aside for the purpose of creating a football field and facilities for the club.[32]
    • Ogmore Estate – 1,500 hectares (5+34 sq mi) and has an active limestone quarry, Ogmore Castle and a golf course
    • Castleton estate – 114 hectares (280 acres) of grazing land
    • Bolingbroke Castle, Lincolnshire
    • Park Farm
    • Donington
    • Quadring Fen Farm
    • Quadring
    • Drayton House Farm, Swineshead

Castles and historic properties

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Revenue, income, and tax

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As of the financial year ending 31 March 2022, the estate was valued at £652.8 million.[5] The net income of the duchy is paid to the reigning sovereign, and amounts to about £24 million per year.[2][5] As the duchy is an inalienable asset of the Crown held in trust for future sovereigns, the current sovereign is not entitled to the portfolio's capital or capital profits.[2][37] The Duchy of Lancaster is not subject to tax, but the monarch has voluntarily paid both income and capital gains tax since 1993.[22][38]

Revenue surplus or income from the Duchy of Lancaster has increased considerably over time. In 1952, the surplus was £100,000 a year. Almost 50 years later in 2000, the revenue surplus had increased to £5.8M. In 2010, the revenue surplus stood at £13.2M, and by 2017, the surplus had grown to £19.2M.[39]

In October 2024, an investigation by The Sunday Times and Channel 4's Dispatches reported that the royal family profited from the NHS through a 15-year lease signed in 2023 by the duchy, which charged NHS Foundation Trust £829,000 annually for a central London warehouse. This arrangement raised concerns about financial transparency. Critics, including Edward Leigh and Margaret Hodge, called for the royal duchies to pay corporation tax and condemned the monarchy for profiting from public services. The royal income sources included the Sovereign Grant, the Duchy of Lancaster, and the Duchy of Cornwall, which together generate significant revenue and enjoy favorable tax status. The investigation also highlighted fees charged for military training and mooring rights on royal properties, with both duchies asserting they operated as commercial entities in compliance with disclosure requirements while emphasizing commitments to sustainability and community support.[40]

See also

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References

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  1. ^ "About the Duchy". Duchy of Lancaster. 2015. Archived from the original on 18 January 2016. Retrieved 9 January 2016.
  2. ^ a b c d e "FAQ". Duchy of Lancaster. Archived from the original on 4 March 2016. Retrieved 9 January 2016.
  3. ^ "Privy Purse and Duchy of Lancaster". Royal Household. Archived from the original on 25 September 2011. Retrieved 30 September 2011.
  4. ^ a b "Properties and Estates". Duchy of Lancaster. 3 December 2013. Archived from the original on 11 August 2011. Retrieved 12 March 2013.
  5. ^ a b c d "Financial". Duchy of Lancaster. Retrieved 6 April 2023.
  6. ^ "County Palatine -". www.duchyoflancaster.co.uk. Archived from the original on 13 July 2017. Retrieved 30 April 2018.
  7. ^ a b c d e f "An ancient inheritance". Duchy of Lancaster. Retrieved 16 November 2022.
  8. ^ Maddicott, J. R. (2004). "Ferrers, Robert de, sixth earl of Derby (c. 1239–1279)". In H. G. C. Matthew, Brian Harrison (ed.). Oxford Dictionary of National Biography. Oxford University Press. ISBN 978-0-19-861411-1.
  9. ^ Blackstone, W. (1765) Commentaries on the Laws of England, Introduction, chapter 4 Archived 27 September 2016 at the Wayback Machine. Sir William Blackstone described the Duchy as "separate from the other possessions of the crown in order and government, but united in point of inheritance." (Footnote no. 78.)
  10. ^ a b c Evans, Rob; Lawrence, Felicity; Pegg, David (5 April 2023). "Revealed: royals took more than £1bn income from controversial estates". The Guardian. Retrieved 6 April 2023.
  11. ^ a b c d e Lawrence, Felicity; Evans, Rob (5 April 2023). "Who owns and profits from the duchies of Lancaster and Cornwall? – timeline". The Guardian. Retrieved 6 April 2023.
  12. ^ "The Duchy nears completion of Winmarleigh sales". Duchy of Lancaster. 21 June 2012. Archived from the original on 3 September 2014. Retrieved 31 August 2014.
  13. ^ "Duchy land farm sell-off". Garstang Courier. 31 March 2011. Archived from the original on 3 September 2014. Retrieved 31 August 2014.
  14. ^ "Paradise Papers: Queen should apologise, suggests Corbyn". BBC. 6 November 2017. Archived from the original on 7 November 2017. Retrieved 6 November 2017.
  15. ^ Osborne, Hilary (5 November 2017). "Revealed: Queen's private estate invested millions of pounds offshore". The Guardian. Archived from the original on 5 November 2017. Retrieved 5 November 2017.
  16. ^ "The Government, Prime Minister and Cabinet". UK Government. Archived from the original on 21 July 2011. Retrieved 14 August 2011.
  17. ^ Vernon Bogdanor (November 1995). The Monarchy and the Constitution. Oxford: Clarendon Press. p. 188. ISBN 0-19-827769-5. The statement in the book is sourced to "Kenneth Clarke, Chancellor of the Duchy of Lancaster in Hansard, Standing Committee G, col 11, 17 November 1987"
  18. ^ "Departmental Land-Duchy of Lancaster". They Work For You. 21 July 2008. Archived from the original on 24 October 2012. Retrieved 30 September 2011.
  19. ^ "Hansard Written Answers and Statements". TheyWorkForYou. 14 September 2011. Archived from the original on 23 September 2011. Retrieved 30 September 2011.
  20. ^ "Duchy Council". TheyWorkForYou. 6 December 2006. Archived from the original on 24 October 2012. Retrieved 30 September 2011.
  21. ^ "Accounts, Annual Reports and Investments". The Duchy of Lancaster. 18 July 2011. Archived from the original on 12 October 2011. Retrieved 30 September 2011.
  22. ^ a b "Duchy of Lancaster Management and Finance". Duchy of Lancaster. 2015. Archived from the original on 17 May 2015. Retrieved 9 January 2016.
  23. ^ "Barmote Courts". Duchy of Lancaster. 26 January 2011. Archived from the original on 12 July 2011. Retrieved 30 September 2011. ()
  24. ^ "Palatine High Sheriffs". Duchy of Lancaster. 20 May 2011. Archived from the original on 8 November 2011. Retrieved 30 September 2011.
  25. ^ "Bona Vacantia | Duchy of Lancaster". www.duchyoflancaster.co.uk. Retrieved 24 November 2023.
  26. ^ The Cheshire Survey Archived 3 September 2014 at the Wayback Machine.
  27. ^ Unger, Paul (5 June 2009). "Duchy courage". Property Week. Archived from the original on 3 September 2014. Retrieved 31 August 2014.{{cite news}}: CS1 maint: bot: original URL status unknown (link)
  28. ^ The Staffordshire Survey Archived 1 August 2016 at the Wayback Machine.
  29. ^ The Yorkshire Survey Archived 12 September 2014 at the Wayback Machine.
  30. ^ Newton, Grace (21 July 2020). "Three gamekeepers suspended over killing of goshawk on Queen's land". Yorkshire Post. Retrieved 29 July 2020.
  31. ^ "The Southern Survey -". www.duchyoflancaster.co.uk. Archived from the original on 27 September 2015. Retrieved 30 April 2018.
  32. ^ "AFC Rushden & Diamonds Agree Heads Of Terms For New Home". Official Home of AFC Rushden and Diamonds. Retrieved 6 April 2020.
  33. ^ "The Urban Survey -". www.duchyoflancaster.co.uk. Archived from the original on 26 December 2015. Retrieved 30 April 2018.
  34. ^ Rayner, Gordon (17 July 2012). "Queen's private Duchy of Lancaster estate rises in value above £400m for first time, accounts show". The Telegraph. Archived from the original on 3 September 2014. Retrieved 31 August 2014.
  35. ^ "Holdings: Foreshores". Duchy of Lancaster. Archived from the original on 3 September 2014. Retrieved 31 August 2014.
  36. ^ "Minerals -". www.duchyoflancaster.co.uk. Archived from the original on 8 January 2018. Retrieved 30 April 2018.
  37. ^ "Annual Report 2013" (PDF). Duchy of Lancaster. 31 March 2013. Archived (PDF) from the original on 8 July 2014.
  38. ^ "Taxation". Royal Household. Archived from the original on 26 September 2011. Retrieved 30 September 2011.
  39. ^ "The Queen has hit the jackpot again. But why does she need so much money?". The Guardian. 19 July 2017. Archived from the original on 20 July 2017.
  40. ^ Wood, Poppy (3 November 2024). "Royals make millions from NHS, files reveal". The Telegraph. Retrieved 4 November 2024.

Further reading

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  • Somerville, R. (1936). "The Cowcher Books of the Duchy of Lancaster". English Historical Review. 51: 598–615.
  • Somerville, R. (1941). "The Duchy of Lancaster Council and Court of Duchy Chamber". Transactions of the Royal Historical Society. 4th Ser., 23: 159–77.
  • Somerville, R. (1946). The Duchy of Lancaster. London.
  • Somerville, R. (1947). "Duchy of Lancaster Records". Transactions of the Royal Historical Society. 4th Ser., 29: 1–17.
  • Somerville, R. (1951). "Duchy and County Palatine of Lancaster". Transactions of the Historic Society of Lancashire and Cheshire. 103: 59–67.
  • Somerville, R. (1953–70). History of the Duchy of Lancaster. 2 vols, London.
  • Somerville, R. (1972). Office-Holders in the Duchy and County Palatine of Lancaster from 1603. Chichester.
  • Somerville, R. (1975). "Ordinances for the Duchy of Lancaster". Camden Miscellany XXVI. Camden, 4th Ser., 14: 1–29.
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