SNP ministers redirect money intended for restoring nature to help fund council pay deals

SNP ministers said £5 million from the nature restoration fund would instead be spent on pay settlements.

It came as the Scottish Government also confirmed it is reviewing its plans to open an international office in Warsaw.

Ministers have said restoring biodiversity is crucial in tackling the climate crisis, with one in nine species in Scotland at risk of becoming nationally extinct.

But finance secretary Shona Robison recently warned public spending cuts will be required amid a “very challenging environment”.

The BBC reported the Government has written to councils telling them to divert the nature restoration fund money towards pay settlements.

A Scottish Government spokesman said it is “taking on significant additional financial pressure to fund the local government pay offer, and the finance secretary has been clear that painful choices have had to be made”.

He said: “Protecting and restoring our natural environment is key to addressing the twin crises of nature loss and climate change, and nearly £40 million has already been distributed through the nature restoration fund since 2021. While capital funding of £5 million from this year’s nature restoration fund has been redirected to fund the pay offer, it will be replaced in future years.

“We know the vital role local government employees play in delivering local services which are valued by the public. This pay offer demonstrates just how much we value these workers too. It will provide an above-inflation pay increase for all council employees and ensure the most support is focused on the lowest paid.”

Anne McCall, director of RSPB Scotland, said it was “desperately bad news”. She said: "Recently published analysis has shown that funding for nature needs to increase, not be cut. Scotland is one of the most nature depleted countries in the world, coming 28th from the bottom of 240, and this trend is continuing.

“The Nature Restoration Fund has been critical in helping to deliver projects right across rural and urban Scotland, generating employment and bringing benefits to people, economy, biodiversity and nature."

She added: "The short and long-term consequences of this action will be keenly felt both now and into the future.”

Lang Banks, director of WWF Scotland, said: “It's extremely frustrating when the small amounts of money which are allocated to climate and nature action come under further pressure.

"Scotland is one of the most nature-depleted countries in the world, and it's really important that we take steps now in order to begin to reverse that.

"Many of the actions that you can take to protect nature also deliver benefits for the public, whether by cutting carbon, cleaner air or helping to reduce flooding. So pulling money from this area is just storing up problems for the future."

Green MSP Mark Ruskell said the news was “hugely concerning and could have a very damaging impact for our communities in the short and long term”.

He said the £65 million fund was secured by the Scottish Greens as part of the cooperation agreement with the SNP that ended in April.

“The nature restoration fund is supporting vital projects all across our country, from building natural flood protections to safeguarding local species, restoring our waterways and improving our parks,” Mr Ruskell said. “It is enhancing our communities, by making them more welcoming and accessible while creating important jobs.

“Investment in natural flood management for example massively saves public money in the long run. We are in a climate and nature emergency, the two are linked and restoring nature in our communities is key.

“Investing in local services and our local environment should not be in opposition, they go together. Every worker deserves to be paid a fair wage, and every one of us should have access to green space and a livable and sustainable community. It would be short-sighted and counterproductive to cut one at the expense of the other.

“Public finances are being stretched and there are political choices to be made. The Scottish Government must use every tool it has to ensure that local authorities are fully funded and that we are investing in our environment and our communities.”

Conservative MSP Rachael Hamilton said: "Scotland has so many species which are at risk of habitat destruction. So it's alarming that the SNP would defund biodiversity conservation to plug other holes they have created in their own spending. 

"Councils and NatureScot will be left with nothing to spend on preserving our beautiful natural environment for future generations. I urge ministers to reconsider the damage this will cause to at-risk species and properly fund councils for any deals they have struck elsewhere. Nature should not be a trivial consideration for the SNP, as this would suggest." Elsewhere, the Herald on Sunday reported that plans to expand the Scottish Government’s network of international offices into the Polish capital are on hold because of the spending review.

A Government spokesman said: “Our plans to open an office in Warsaw will be considered as part of the wider review of government spending. It is necessary to ensure resources are used economically, efficiently and effectively, and high levels of scrutiny are applied to expenditure.”

Ms Robison previously said cost-cutting measures were needed following the Treasury’s review of public finances and uncertainty over how pay review body recommendations will be funded.

Earlier this month, she confirmed a freeze on public sector recruitment for everything except “essential frontline” posts. Scotland’s version of the winter heating payment will also be means-tested, following a similar decision by the UK government.

Meanwhile, the arts body Creative Scotland has closed one of its key funds due to concerns over support from the Scottish Government.

Details of further cut-backs expected to be set out when the Scottish Parliament returns from recess in early September.