§ Mr. Chapman
To ask the Chancellor of the Exchequer what plans he has for the setting and publishing of performance targets for the Crown Estate Office.
§ Mr. Lawson
The Crown Estate, in consultation and agreement with the Treasury, has undertaken to prepare the following annual cycle of targets and assessments:
- (a) An autumn statement of five-year targets of total returns from income and capital growth. prepared independently by a leading firm of chartered surveyors—Hillier Parker May and Rowden. It will be prepared from economic models developed to forecast rental and yield movements as a device to calculate capital value changes.
- (b) A late spring broad programme, prepared by the Crown Estate, of the budget of revenue and expenditure for the following year, with estimates of income and expenditure for the two succeeding years. This programme will, as at present, be discussed and agreed with the Treasury.
- (c) A late-summer monitoring by the Crown Estate and Hillier Parker of the outturn for the previous year in relation to the broad programme and the
503 longer-term targets. It would also take into account the financial results achieved by other major property concerns.
- (d) The independently prepared target of total returns, and the budget of net revenue, for the following year will be published in the annual reports of the Crown Estate. The other assessments of future developments, being commercially sensitive, will not be published, but will be reviewed and discussed with the Treasury in this annual cycle of monitoring performance.