Addressing market uncertainties and making meaningful connections occupied much of the conversation at the recent ‘Forestry and Wood Processing at the Crossroads’ conference, jointly hosted by Brodies LLP and Confor at Brodies’ Capital Square offices in Edinburgh.
Discussions at the forestry event, which brought together businesses, industry leaders, legal advisers and MSPs from Scotland’s main political parties, highlighted key challenges and opportunities in Scotland's forestry sector, focusing on factors that impact on Scotland meeting its woodland creation targets. These factors include industry support, policy, community engagement and investor confidence.
Community engagement is key
The importance of early and meaningful engagement with communities was raised at various points during the conference, by industry speakers and politicians alike. While social media has played its part in increased public scrutiny and platforms for sharing of views, some speakers voiced their concerns about too much attention being paid to misinformation over science-backed evidence.
Gresham House’s Rob Carlow shared a positive experience of a Gresham-led approach to go beyond the statutory engagement process and engage with a local community proactively during a low-impact stage of the forestry cycle. Forestry consultant Claire Glaister emphasised the importance of language and speaking to communities on their level, recognising the day-to-day realities and concerns that are a priority to local people.
Legislative change is significant - but not yet certain
My fellow Brodies partner Emily Pike provided a helpful outline to conference delegates of the proposed inheritance tax changes and their potential impact on forestry’s appeal as an asset class. With another UK Budget on the horizon though, it remains to be seen whether current proposals will be revisited by the Chancellor, and whether the likes of gift allowances – which have the potential to impact planning options in connection with the previously announced inheritance reforms - will be brought into the tax equation come 26 November.
Land reform too, has its part to play in shaping the future of Scotland’s land; forestry included. Plans for mandatory land management plans and greater community engagement for large landholdings may impact on decisions to create woodland within these properties. The Land Reform (Scotland) Bill also affects the sale process for qualifying properties, which could create additional hurdles and add to the time taken for a sale to complete.
With the final stage of the Bill’s scrutiny processes yet to take place at Holyrood and much of the detail to be covered in subsequent regulations, it is too early to comment on precise impact, but I would encourage industry to pay close attention as the regulations develop and the Bill becomes law – expected to happen in 2026, ahead of the next Scottish Election.
Creating more long-term certainty is key for confidence
A longer-term approach, a timber industrial strategy akin to one being adopted in Wales and a multi-annual budget commitment from government were also on the wishlist for the conference’s speakers and contributors. Much was discussed about the issues of being in a sector that cannot adapt quickly to change and relies on longer term sureties, to sustain investor and industry confidence. Changes of government and subsequently, government policies, not to mention significant legal reforms, were recognised as a perfect storm for the sector in creating uncertainty.
Pride in the sector
Conference delegates did not shy away from the obstacles that Scotland’s forestry sector has to contend with, but it would be amiss not to mention the due recognition given to its value too.
Industry and politicians championed its significance, with Confor’s Stuart Goodall citing forestry as one of the few industries that can tackle three current critical issues for society – cost of living, housing shortages and climate change/net zero goals. Innovation too was a focus, with Alex Murray of Glennon Brothers sharing how the firm has invested in robotics to speed up production levels and address housing targets.
It was particularly encouraging to see that there was much agreement and alignment from industry and politicians across parties on what can and should be done to instigate positive change. The next few years will be crucial for the direction of forestry. What is not in doubt is the commitment of those involved in the sector.
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