The chief executive of the Crown Estate, Dan Labbad, faced questioning from Members of Parliament on Monday regarding his compensation package, which has increased by nearly fivefold since he took the position in 2019. Labbad's salary has risen from £517,000 to £2.3 million over the past seven years, a development that has prompted scrutiny over the value for money provided by the organization.
The Crown Estate manages the monarch's land and property holdings across England and Wales, as well as the seabed around the United Kingdom. In the last financial year, the organization reported a profit of £1.2 billion, largely generated from offshore wind projects. A portion of these earnings is returned to the Treasury for public spending, while another part contributes to the Sovereign Grant, which supports the Royal Family's official duties. The Treasury received £487 million last year, with £132 million allocated to the King, an increase from £86.3 million the previous year.
Clive Betts, a Labour MP, raised concerns during the Public Accounts Committee hearing about the Crown Estate's administrative expenses, which increased from £70 million to £88 million in the past financial year. Betts questioned what justified the significant rise in Labbad's salary, particularly in comparison to public sector roles where pay increases have been more modest. Labbad, an Australian businessman, declined to comment on the difficulty or specifics of his role compared to previous years, stating that such assessments were for others to make. He did emphasize the importance of maintaining an "lean but effective ship."
The inquiry also touched upon a separate matter involving Prince Andrew's lease agreement for Royal Lodge. It was revealed that the Duke of York received private income from subletting three cottages on his estate while paying a nominal rent himself. Labbad stated that the Crown Estate followed appropriate processes to ensure the best value at the time the lease was agreed. The £7.5 million in refurbishment costs for Royal Lodge were undertaken with the understanding that the tenant could sublet cottages, allowing the Crown Estate to invest in other areas. The Royal Household expects to take possession of Royal Lodge in October and is considering options for its future, as the property cannot be sold and will need to be re-let. The amount Prince Andrew earned through subletting has not been disclosed, but officials indicated it could be substantial.