Dan Labbad, chief executive of the Crown Estate, faced scrutiny from Members of Parliament on Monday over his £2.3 million annual salary, a figure that has nearly quintupled since he took the role in 2019. His starting salary was £517,000.
The Public Accounts Committee (PAC) questioned Labbad on the significant increase in his compensation package and the Crown Estate's rising administrative expenses, which grew from £70 million to £88 million in the last financial year. Clive Betts, the Labour MP for Sheffield South East, pressed Labbad on whether his workload had increased commensurately to justify the pay hike, a question Labbad deflected.
The Crown Estate manages the monarch's land and property holdings across England and Wales, as well as the UK's seabed. The organization reported a profit of £1.2 billion for the last financial year, largely attributed to offshore wind revenue. A portion of these profits is returned to the Treasury for public spending, and another part contributes to the Sovereign Grant, which funds the Royal Family's official duties. In the last financial year, £487 million was returned to the Treasury, with £132 million allocated to the King, an increase from £86.3 million the previous year.
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Questions surrounding the Crown Estate's value for money have intensified in recent years. The committee's inquiry was partly prompted by a report detailing that Prince Andrew, the Duke of York, received private income from subletting three cottages on his Royal Lodge estate, despite paying a nominal rent himself. Andrew was stripped of his titles and subsequently vacated his home, moving to Marsh Farm on the King's Sandringham estate. His lease agreement for the Royal Lodge, secured in 2003 for a £1 million premium, stipulated a peppercorn rent if demanded annually for the 75-year term. He also funded £7.5 million in refurbishments completed in 2005.
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Labbad defended the lease agreement during the hearing, stating that the Crown Estate followed appropriate processes to ensure the best value at the time. He explained that the terms, which included a premium and refurbishment costs borne by the tenant, enabled the subletting of cottages on the estate. James Chalmers, an official from the Royal Household, indicated that the property is expected to be returned in October and that various options for its future are being considered. As part of the Windsor Estate, Royal Lodge cannot be sold and will need to be re-let. The amount Prince Andrew earned from subletting has not yet been disclosed.
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