Scrap subsidies to Scotland’s conifer forests, urges report

Royal Society of Edinburgh says money should be spent on longer-living native forests with greater biodiversity benefits

A report has called on ministers to scrap the huge subsidies and tax breaks given to conifer forests because they do too little to combat the climate crisis.

The report from the Royal Society of Edinburgh said the tens of millions of pounds in subsidies given to the timber industry should instead be spent on longer-living native forests, which have greater and clearer climate and biodiversity benefits.

In Scotland, ministers have subsidised forestry by more than 390m over the last decade, with roughly 80% of that spent on commercial conifer plantations, as well as extra subsidies for haulage.

Timber companies and landowners pay no corporation tax on their income from forests; profits from timber sales are tax-free; there is no capital gains tax on the value of the trees, and 100% inheritance tax relief on the forestry property.

Forest owners were also able to sell carbon credits, adding to the attractiveness of forestry as an investment.

These grants, tax breaks and carbon credits had helped to substantially drive up land prices in Scotland, up by 73% in a single year, greatly distorting the land market and pricing people out.

Government agencies are not properly enforcing policies which require environmental impact assessments on new forest projects; their approach is inadequate" and passive".