Formally, the chancellor of the Duchy of Lancaster is appointed by the Sovereign on the advice of the prime minister,[6][7] and is answerable to Parliament for the governance of the Duchy.[8] In modern times, however, the involvement of the chancellor in the running of the day-to-day affairs of the Duchy is slight, and the office is held by a senior politician whose main role is usually quite different. In practical terms, it is a sinecure, allowing the prime minister to appoint an additional minister without portfolio to the Cabinet of the United Kingdom. In September 2021, the role was endowed with responsibility for advising the prime minister on policy development and implementation, particularly around Brexit.[9] Those duties were later transferred to the role of Paymaster-General in the Starmer ministry.[citation needed]
Originally, the chancellor was the chief officer in the daily management of the Duchy of Lancaster and the County Palatine of Lancaster (a county palatine merged into the Crown in 1399), but that estate is now run by a deputy, leaving the chancellor as a member of the Cabinet with little obligation in regard to the chancellorship. The position has often been given to a senior Cabinet minister with responsibilities in a particular area of policy for which there is no department with an appropriate portfolio.
The chancellor of the Duchy of Lancaster is entitled to a salary under the Ministerial and Other Salaries Act 1975, but section 3 of the act provides that the salary "shall be reduced by the amount of the salary payable to him otherwise than out of moneys so provided in respect of his office".[13] The office of the chancellor of the Duchy of Lancaster is part of the Cabinet Office.[14]
When David Lidington was appointed chancellor on 8 January 2018, the position of Minister for the Cabinet Office was once again held concurrently. This continued until Michael Gove was appointed chancellor in July 2019. Michael Gove was given responsibility over the Cabinet Office, but did not initially hold the ministerial position of Minister for the Cabinet Office (which is not on a statutory footing). He was later granted that title in the 2020 Cabinet reshuffle and the two positions remained together until February 2022.
Responsibilities
In addition to administering the estates and rents of the Duchy of Lancaster, the chancellor is also a member of the cabinet and advises the prime minister on the development and implementation of government policy.[15] In addition, the Chancellor is presently responsible for: