Stephen Flynn accuses UK government of denying Scotland same land borrowing powers as England

Scotland is being denied the same Crown Estate borrowing powers as England and ministers must change course, SNP Westminster leader Stephen Flynn has warned.

The Crown Estate manages a huge portfolio of property and land, with much of its revenue going directly to the UK Treasury. This week the UK government discussed plans to give the Crown Estate the ability to borrow, as its competitors can, with MPs told the change will return more money to taxpayers and aid the transition to net zero.

SNP Westminster leader Stephen Flynn. Picture: Jeff J Mitchell/Getty Images | Getty Images

However, these changes would apply to England and Wales, not to the Crown Estate in Scotland, prompting a clash between the Treasury minister Darren Jones and the SNP Westminster leader.

Unhappy with the explanation as to why provided in the Commons, Mr Flynn has now written to Mr Jones urging the UK government to change course.

In a letter seen by The Scotsman, he wrote: “I asked for clarity on why those powers will not be extended to Crown Estate Scotland given the importance of Scotland's energy sector and the potential benefits to Scotland that such powers could bring. However, no reasoning was provided as to why the UK government has failed to simultaneously grant parity over borrowing powers to Crown Estate Scotland.

“I can see no obvious reason as to why this decision has been arrived at and would be keen to meet with you to determine whether there is scope to amend the Bill to this effect.”

Speaking after writing the letter, the Aberdeen South MP accused the UK government of snubbing Scotland without “justification”, in a move understood to have annoyed many opposition parties, not just the SNP.

Treasury minister Darren Jones suggested he would be open to discussing the issue "in future" | House of Commons/UK Parliament/PA Wire

Mr Flynn said: "GB Energy will be based in Scotland and it's Scotland's energy. But the Labour government appear to be refusing to provide parity over borrowing powers with the rest of the UK. I'm at a loss to understand the reasoning behind this and it's imperative Labour do the sensible thing and change course.

"There appears to be no justification nor logic behind this approach. But I am hopeful that through some constructive cross-party dialogue we can secure a solution that provides Scotland with the powers it requires.

"Crown Estate Scotland should have the same borrowing powers as England, allowing us to fund our green energy future and properly harness Scotland's vast energy wealth."

The Crown Estate is an independent company belonging to the monarch, with the value of its land and assets worth an estimated £15.5 billion. Revenue from its property portfolio flows directly to the Treasury, with 25 per cent of the annual profits going towards the monarch’s official duties. The estate also owns the UK seabed out to 12 nautical miles and has jurisdiction over new offshore wind farms.

The Treasury insisted the matter was for the Scottish Government to instigate first.

A HM Treasury spokesperson said: “Crown Estate Scotland is a distinct entity from the Crown Estate and is governed by Scottish legislation.

“Scottish ministers already have the ability to make grants and lend to Crown Estate Scotland. Any changes to Scottish legislation would be for the Scottish Government to propose in the first instance”.