Woods, trees and the 2015 Spending Review

The former Prime Minister, Harold Wilson once remarked that ‘whichever party is in office, the Treasury is in power’. Its influence famously reaches right across Whitehall and that influence is never more apparent than at the time of a Spending Review.

That eye-watering cuts of between 25-40% are sought from ‘unprotected’ departments is concerning to say the least given that Defra and the Department for Energy and Climate Change fall into this category.

Also of concern is the future funding settlement for local authorities that will significantly impact on communities’ ability to access green space.

Protecting important sources of funding such as Countryside Stewardship and safeguarding locally valued public land should be priorities if the Government’s manifesto statement ‘to conserve and enhance our natural environment so that this remains the most beautiful country in the world’ does not fall victim to an own goal from the outset.

Natural wealth

While the state of public finances remains an incredibly live political issue, it is undoubtedly a fact– thanks to an ever growing body of evidence - that our natural wealth underpins our health and prosperity as a society. This surely means that the Government’s long term economic plan and the spending review mantra of a country ‘that lives within its means’ cannot be decoupled from a long term plan for the natural environment.

Forestry, of course, is a famously long term game. The sector has traditionally lamented how short term political cycles work against it. But if you are seriously in the business of a long term plan and in a strong position politically, what better time than now to invest in areas that deliver on a range of policy challenges simultaneously and will save the taxpayer money.

Two reports published in the last year make this abundantly clear. Firstly, a study we commissioned by Europe Economics put the total value of UK woodlands, even excluding flood and water management benefits and health benefits, at £270 billion.

And secondly, the Natural Capital Committee’s Third Reportstated that ‘a substantial woodland planting programme of between 150,000 to 250,000 hectares over the next 50 years, would deliver considerable net benefits’.

Making it happen

We are building on our work with Europe Economics through a seminar at Birmingham University in November that will explore new funding streams to unlock the benefits of woods and trees.

Here’s one idea the Treasury should give serious consideration to in the meantime:

More than 2,000 organisations in both the public and private sector participate in the Government’s Carbon Reduction Commitment Energy Efficiency Scheme (CRC). This is a mandatory scheme intended to incentivise carbon reduction actions by organisations with significant energy usage.

We propose that participating organisations be given the option to direct 10% of their liability into funds to support woodland creation in the UK. This would drive positive and tangible environmental change and would see the Treasury starting to make natural capital real in communities across the country.