The Scottish Government's decision to redirect funds from the Nature Restoration Fund to settle local government pay disputes has sparked significant controversy.

Ministers have directed councils to allocate £5m from this year's £29.2m fund, intended for vital conservation projects, towards meeting the revised pay offer for local authority workers.

The cuts not only harms progress on restoring biodiversity but also risks environmental investment and jobs, Scottish Land and Estates have said.

The rural business organisation has written to deputy First Minister, Kate Forbes MSP.

The government claims this reallocation is a necessary step to address immediate financial pressures, with the promise that the diverted funds will be replenished in future years.

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Since its inception in 2021, the Nature Restoration Fund has been crucial in delivering over 164 projects across Scotland, contributing significantly to climate action and the restoration of natural habitats.

This funding has not only helped to preserve Scotland’s unique environment but has also created jobs, boosted local economies, and leveraged investment by landowners and businesses.

Chairman of SLaE, Dee Ward, said: “Land managers across Scotland, who are on the frontline in the fight against climate change and biodiversity loss, will be shocked by this decision. The Nature Restoration Fund has been key to supporting jobs and projects that align with one of the First Minister’s four key priorities - tackling the climate emergency – as set out in Mr Swinney’s statement in May. This cut sends a clear message that rural Scotland is not a priority for this government.

“It is disappointing that, despite the rhetoric about resetting relations with rural Scotland, this government continues to make cuts that disproportionately affect our communities. Our rural areas are essential to delivering food security, driving Net Zero ambitions, and restoring natural environments that help our native wildlife thrive. Yet, when cuts are needed, rural budgets are the first to be targeted.”

Mr Ward emphasised the importance of reinstating the funding immediately to maintain the momentum in tackling the twin crises of climate change and biodiversity loss.

He continued: “While there have been promises to reinstate this funding in future years, past commitments to rural financing have not been honoured. This has only deepened the mistrust between rural Scotland and the government. Now, more than ever, the Scottish Government should be setting an example in addressing these critical issues, not backtracking on support.

“We would ask the government to review this decision urgently and to recognise the significant harm the cut will cause to the natural environment and the potential for future investment in rural Scotland.”

Scottish Conservative shadow rural affairs Secretary, Rachael Hamilton, called the reallocation ‘alarming’, highlighting the risk it poses to species conservation. Scottish Labour's Sarah Boyack accused the SNP government of economic mismanagement, while Scottish Liberal Democrat leader Alex Cole-Hamilton described the funding cut as a ‘short-sighted move’ during a nature emergency.

Ruth Ashton-Shaw, member of the Nature Friendly Farming Network Scotland and a farmer from Dumfries and Galloway, said: "It's crucial that funding for nature restoration isn't redirected. This money should be ring-fenced to safeguard Scotland's environment and support our economy.

"Our natural landscapes are already under significant pressure. Diverting these funds now will only worsen the situation, leading to long-term consequences that could harm both our environment and agricultural livelihoods.

"We need to invest in projects that protect our biodiversity, restore habitats, and combat climate change. I urge the government to reverse this decision and prioritise the long-term health of our natural resources. Failing to do so puts both our environment and our rural communities at risk."