Complex sentence: In response to this demand, the Scotland Office decided against dividing up the Crown Estates, however has developed plans to allocate some of the Crown Estate income to the Big Lottery Fund, which would then distribute funds to coastal communities.
Split into simpler sentences: In response to this demand, the Scotland Office decided against dividing up the Crown Estates. However, plans have been developed to allocate some of the Crown Estate income to the Big Lottery Fund, which would then distribute funds to coastal communities.