Scottish budget: Nature restoration funding triples for Scotland in two years

The figures were confirmed in budget papers after finance secretary Shona Robison announced Scotland’s spending review for 2026 on Tuesday.

The funding for nature restoration will increase from a total spend of £7.4 million in 2024 to a projected £26.1m this year.

The figures come as the Scottish Government committed to investing more than £5 billion this year into tackling the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming.

Ms Robison, delivering her last draft Budget before stepping down at May’s election, said more than £1.9 billion will be invested in supporting Scottish farmers, crofters, land managers, and rural communities.

The funding will maintain direct payments for farmers while investing in making the sector become a global leader in regenerative and sustainable farming. This will include investment of £1.3 million in skills for regenerative and sustainable farming.

The National Farmers Union Scotland (NFU Scotland) said while the rural portfolio will see a welcome return of £26 million for Agricultural Modernisation, the union warned that flatline funding through schemes such as the Basic Payment Scheme and Less Favoured Area Support still represents a real terms decline in support given rising costs.

The union said modest increases to the Agri-Environment Climate Scheme budget also fail to meet the scale of investment required for climate and nature action.

NFU Scotland president Andrew Connon said: "The Scottish Government has delivered a budget that essentially flatlines vital direct support payments.

“That will give some certainty and security. Scottish farmers and crofters deserve a budget that recognises their indispensable role in delivering high-quality food, climate and nature outcomes, and supporting rural communities."

Responding to the announcement, Stephen Young, director of policy at estate membership organisation Scottish Land and Estates (SL&E), said: “The rural affairs budget has seen a reduction, although it is positive that Pillar 1 agricultural payments will remain broadly static.

“The announcement of £26 million for an Agricultural Modernisation Fund raises important questions about how this funding will be deployed.

“While this largely represents the return of funding previously removed from the portfolio, it is positive that the sector will have access to this support. However, meaningful engagement with industry stakeholders will be essential to ensure it is targeted effectively and delivers tangible outcomes on the ground.”

SL&E said it welcomed an increase in funding for woodland grants - from £44.1m in 2024 to £58.7 this year - which will support the delivery of the Scottish Government’s ambitious forestry targets. The group also supported the plan for a boost in peatland restoration. Budget figures show natural resources and peatland spending plans have jumped from £1m in 2024 to £28m this year.

Mr Young added: “It is also encouraging to see a significant uplift in the Nature Restoration Fund, with £26 million allocated – an area where we have been particularly vocal about the need for sustained action to tackle biodiversity loss.”

Conservation groups welcomed the increase in spending for nature restoration, yet questioned a lack of detail on delivery.

Responding to the fiscal statement, Claire Daly, head of policy and advocacy at WWF Scotland said: “This Budget edges forward when Scotland needs a leap.

“Tripling funding for nature restoration and investing in skills for nature-friendly farming are steps in the right direction, yet without clear delivery plans and long-term support, these are hollow promises.

“Likewise, the renewed commitment to carbon-free heating is encouraging, but we need urgent clarity on how and when this will be rolled out. Scotland can’t afford warm words; we need real action.

“The Scottish Government still has an opportunity to pivot toward a fairer, more ambitious path that protects people, restores nature, and strengthens Scotland’s climate resilience. The next Parliament must commit to policies and investment to provide certainty for the generations to come.”