Explainers

Crown Estate revenues

The Crown Estate in Scotland was devolved in 2016. Consequently, the Scottish Government can use the profits it generates to support the Scottish Budget.

While Crown Estate Scotland owns and generates income from many natural assets, it is the coastal seabed that has been the largest source of income in recent years given its strategic importance for the development of offshore wind energy.

ScotWind

ScotWind is money that energy companies paid to Crown Estate Scotland for the right to build and operate offshore wind farms in parts of the Scottish coastal seabed.

The first round of leasing generated £755 million in funding for the Scottish Government, of which £96 million was used in 2022-23. From 2025-26 the Scottish Government is mostly planning to use ScotWind to support capital spending.

INTOG

The Innovation and Targeted Oil & Gas (INTOG) round was a smaller leasing programme for offshore wind projects that specifically reduced emissions from oil and gas production and boosted further innovation. It generated £54 million in the financial year 2024-25.

The Scottish Government’s planned use of Crown Estate funding can either increase or decrease as the year progresses, depending on other changes in the Scottish Government’s funding position and spending needs.

Watch the How is the Scottish Budget funded? video to find out more about the other sources of funding: