The government has said the financial arrangements of the Crown Estate could be “modernised” via primary legislation.

Yesterday, it published its response to a Treasury Select Committee report from March which found that the Crown Estate was failing to take “full account” of the public interest in its management of the property portfolio, which includes buildings such as Windsor Castle (pictured).

The response made a series of suggestions, including saying there was “scope  for modernising the financial arrangements to which the Crown Estate is subject.”

Currently, the Crown Estate is not allowed to borrow money, and in its review, the Treasury committee said it was “alarmed” that its bosses had entered into the Gibraltar Limited Partnership, a joint venture which it said could constitute indirect borrowing.

Roger Bright, chief executive of The Crown Estate said: “We welcome the recognition by the Government and the Treasury Select Committee that The Crown Estate runs a successful business.

“In line with our long standing statutory duty and responsibilities as steward of some of the country’s keynote assets, we will continue to play our part in issues of major importance, including, urban development, offshore energy generation and sustainability in the rural economy.

“We will take action on the recommendations addressed to us in the report. Where appropriate, we will discuss with government the most effective way of moving forward on these. We would of course be happy to cooperate further with a successor Treasury Select Committee as required.”

• Treasury to follow up Crown Estate inquiry
• Treasury Committee slates Crown Estate
• Crown Estate sets affordable housing tests for London resi sale
• Crown Estate buys Capital Shopping Centres’ Westgate in Oxford
• Osborne: departments must look to privatise property