ONE of Scotland's leading forestry officials has warned of "another difficult year ahead" due to the continued strain on public budgets. 

Simon Hodgson, chief executive of Forestry and Land Scotland (FLS), said the pressures of inflation, high energy prices and rising interest are all likely to take their toll, with the organisation expecting to run on a deficit of around £9 million this year. 

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Challenging trade conditions, including squeezes on timber income, are among the factors cited for the predicted disparity, which sees FLS anticipate an income of £153m, but spend to be in excess of £162m. The 2022/23 budget was expected to break even at £144m.

Simon made the admission while setting out FLS's business plan for 2023/24, which lists a number of key objectives, including: 

  • Marketing up to 2.9 million m3 of timber (down from 2022/23's 3 million m3).
  • Creating 500 hectares of new woodland (down from 2022/23's 650 ha).
  • Increasing the total area of peatland with initial restoration action by 1,800 ha (up from 2022/23's 900 ha). 

Simon said: “FLS is very privileged to have such dedicated and passionate staff whose efforts, combined with those of our contractors and volunteers, help us to punch well-above our weight when it comes to delivering Scottish Government ambitions.

“Over the last couple of years world events and natural events, such as major storms and tree diseases, have required that we develop an agile approach to every aspect of our work.

“That adaptability stands us in good stead as we prepare to respond to ongoing and new challenges, not the least of which will be our drive to seek out new sources of income as part of our drive towards financial sustainability.

“However, I have no doubt that as a team we will pull together to build resilience into our forests, create landscape and community benefits and continue to deliver on our key commitments as we move closer to our vision of forests and land that Scotland can be proud of.”

Forestry Journal:

FLS also anticipates welcoming over 12 million visitors to its destinations over the course of the next year, including tens of thousands from all over the world for the UCI World Championship event at Glentress in August.

Writing in the introduction to the business plan, Simon added: "The current financial situation in the UK with increasing inflation, high energy prices and rising interest rates is putting pressure on public sector budgets. 

"FLS and the wider forestry sector is not immune to this pressure and so 2023/24 will be another difficult year." 

The full FLS business plan for 2023/24 can be viewed here.