Nature Restoration Fund 2026-2027
Perth and Kinross Council · 27 May 2026
Back to Climate Change and Sustainability Committee — 27 May 2026 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee: Climate Change and Sustainability Date of Meeting: 27 May 2026 Report Title: Nature Restoration Fund 2026-2027 Report Number: 26/149 Report Author: Hannah Wilson – Climate Change Land Restoration Officer Organisational Lead: Fraser Crofts – Strategic Lead Environment & Infrastructure ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to outline the proposed approach for utilising allocation the Council receives from the Scottish Government’s Nature Restoration Fund (NRF) for 2026-2027. It has now been confirmed by the Head of Finance that Perth and Kinross Council will receive £147,000 in capital funding through the NRF. At the time of writing, confirmation of accompanying revenue allocation is still awaited. In anticipation of further funding details, it is necessary to seek approval in advance for the framework and priorities for deploying the fund. This will ensure that the Council can respond promptly, and effectively once full funding arrangements are confirmed. 1.2 Early approval of the proposed approach will enable the Council to: • Engage early with communities, landowners, and partner organisations, ensuring they are ready to develop and submit projects aligned with NRF priorities. • Provide timely notice of changes to funding criteria and priorities, helping applicants understand expectations, eligibility, and required supporting information. • Promote new funding opportunities without delay, allowing potential applicants and delivery partners to prepare high quality proposals as soon as the Scottish Government announcement is made.
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• Advance preparatory work for seasonal delivery, particularly for habitat creation and tree planting projects that rely on tight planting windows in late autumn and winter. Early preparation is essential to avoid missing key delivery periods. • Streamline internal processes, including new applications forms and rating systems. 1.3 The report also seeks approval for delegating authority to the Strategic Lead for Environment and Infrastructure to approve projects recommended by the NRF working group. This approach ensures that projects can be implemented efficiently within the available funding period, maximising their impact on biodiversity and climate adaptation. 1.4 Sections 1. Purpose 2. Recommendation 3. Background/Context 4. Main Issues 5. Proposals 6. Conclusion 7. Impact Value Assessment 2. Recommendation It is recommended that the Committee: 2.1 Approves the proposed funding structure for the 2026-27 NRF, recognising that implementation is subject to final confirmation of revenue funding from the Scottish Government. 2.2 Approves the delegation of authority to the Strategic Lead for Environment and Infrastructure to approve projects recommended by the NRF Working Group. 3. Background/Context 3.1 The Nature Restoration Fund (NRF) is a 5-year initiative that began in 2021 to support projects that restore nature and improve biodiversity. Over the past five years, PKC has received a total of £1,106,000 through the Edinburgh Process strand of the Nature Restoration Fund, funding over 80 Council, community, and landowner-led projects across the region. 3.2 The money has been available for both Council teams and community organisations to bid for annually. These have been selected to maximise the biodiversity, climate change and wider community benefits. 3.3 The 2025-2026 NRF award was allocated to 24 projects.
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The funded projects involved a mix of invasive non-native species control, pond creation and restoration, meadow and habitat corridor enhancements, and targeted works such pollinator friendly habitat creation. It also supported tree and montane plant nursery development, ecological surveys, and specialist training to enable effective habitat restoration across key sites. 3.4 The 2025-2026 NRF detailed project report will be completed and distributed to councillors once all projects have completed their final report. 3.5 The Scottish Government has confirmed capital budget for Year 6 of the NRF funding available to local authorities in 2026-2027. The Council is currently awaiting confirmation of revenue budget for the same period. 3.6 The NRF is directly supporting the Council’s Corporate Plan priorities of tackling Climate Change and supporting sustainable places, focusing on adaptation and addressing the biodiversity emergency. 4. Main Issues 4.1 One of the main challenges with the NRF is the need for advance approval before projects can begin. Many restoration projects are seasonal in nature, meaning that to meet the required timelines, work must commence at specific times of the year. Delays in obtaining approval can result in missed windows for implementation, which ultimately impacts the success of projects. Delegated authority will ensure rapid mobilisation, early communication with applicants, and the ability to meet seasonal planting windows. 4.2 Another key issue is the lack of existing funding routes for small-scale woodland creation (<0.25ha) and for woodland restoration. The revised NRF structure directly addresses these gaps and supports emerging Nature Networks work. Comparator schemes (e.g., Dumfries and Galloway Woodlands, Borders Forest Trust) demonstrate high demand and successful delivery for small-scale planting, reinforcing the need for a similar model locally. 5. Proposals 5.1 A revised funding structure is proposed for the 2026-27 Nature Restoration Fund (NRF), reflecting the need to focus resources on small-scale woodland creation, woodland restoration, Leven Landscape Enterprise Network, and a pot for wider nature restoration. This structure aligns the fund with Nature Networks priorities, complements national forestry schemes, and addresses known gaps in support for small-scale connectivity planting and restoration work. The revised approach ensures that the NRF does not duplicate national Forestry Grant Scheme funding, but instead fills identified gaps and supports smaller, localised interventions that provide high biodiversity value. All proposals assume continuation of Scottish Government funding but remain subject to confirmation.
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5.2 The revised structure includes four complementary funding pots, each addressing a specific gap in current provision: 5.2.1 Revenue Pot: Woodland Restoration Proposed allocation: 85% of revenue budget Purpose: To support practical actions that improve the condition, structure and long-term resilience of native and ancient woodlands. Priority activities include bringing unmanaged native woodland back into management, restoring ancient woodland sites, improving structural diversity, and reducing pressures such as invasive non-native species e.g. rhododendron, shading, nonnative regeneration and deer impacts. The fund will also support the protection and management of traditional orchards and veteran trees. Projects may include, but are not limited to: Selective thinning and halo thinning, coppicing and pollarding, creation of glades and rides, enhancement of shrub layers, invasive non-native species removal, removal of non-native trees, chemical-free bracken control, creation or retention of standing and fallen deadwood, veteranisation techniques (work to young trees to accelerate the development of ecological features typically found only in old veteran trees, such as decay, hollowing, and cavities), encouraging natural regeneration and targeted native planting, establishing buffer strips, improving habitat connectivity and reinstating wetland features within woodland landscapes. Why needed: • Only 36% of native woodland in Perth and Kinross is currently in good condition for biodiversity, making restoration a high priority. • These actions align strongly with the Tayside Local Biodiversity Action Plan (LBAP), contributing to a wide range of priority actions. 5.2.2 Revenue Pot: Leven Landscape Enterprise Network (LENS) Proposed allocation: 15% of revenue budget Purpose: To support landscape-scale land management actions delivered through LENS that improve biodiversity, water quality, and climate resilience. Projects may include, but are not limited to: • Cover crops and green manures • Reduced fertiliser and improved nutrient management • Soil health and regenerative land management practices • Actions that reduce diffuse pollution and improve water quality Why needed: • LENS is driving a significant increase in delivery at a landscape scale, moving beyond small site-based projects. However, many of the key measures are revenue-based and not well supported by capital funding.
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• A dedicated revenue allocation would enable us to support outcomes rather than just capital works, increase farmer participation, and unlock wider partnership funding, allowing the Council’s contribution to act as a catalyst for greater investment. 5.2.3 Capital Pot: Small-scale Native Woodland Creation (<0.25 ha) Proposed allocation: 20% of capital budget Purpose: To support small-scale native woodland creation and individual tree planting, particularly where these strengthen biodiversity corridors or make use of marginal farmland or community space Key Features: Offering grants of up to £1,000 per applicant to support tree and small woodland planting. Assistance may cover up to 100% of materials costs for private applicants (farmers, landowners and individuals), and up to 100% of materials and labour costs for non‑profit organisations such as schools and community groups. Why needed: • The Forestry Grant Scheme has a minimum size threshold of 0.25ha, leaving a funding gap for smaller but strategically vital woodland creation. • Evidence from Dumfries and Galloway Woodlands (~70 small projects/year) and Borders Forest Trust demonstrates strong demand and straightforward delivery for small-scale, high impact planting. • These small plantings are critical for providing stepping stone habitat in a fragmented landscape, helping to delivering Nature Networks. 5.2.4 Capital Pot: Wider Nature Restoration Proposed allocation: 80% of capital budget Purpose: Deliver wider nature restoration that fall outside woodland specific schemes. It is intended to deliver high impact nature restoration across both urban and rural areas, and to maintain continuity for successful multiyear projects where further funding would maximise biodiversity outcomes. Projects may include, but are not limited to: meadow creation and enhancement, pollinator corridors, SuDS ponds and wetland improvements, riparian buffer planting, habitat connectivity works, invasive non-native species control, species specific habitat improvements, and other locally important restoration actions Why needed: • This pot ensures continued flexibility to respond to local priorities, support innovation, and fund actions that have no other viable funding route. • Preference will be given to continuing or expanding successful projects from previous years, where additional phases will deliver the greatest biodiversity gains and maintain momentum in community‑led or partnership‑based initiatives.
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5.3 Applications will be invited from internal services, community organisations, landowners and partner groups, with all projects reviewed. The existing NRF Working Group process will continue, with: • Initial review by the NRF Coordinator; • Assessment of applications by the Working Group; • Recommendation of projects for approval. 5.4 With the revised funding structure, a full scoring matrix will not be required for all funding pots. Small-scale native woodland creation and woodland restoration projects will be assessed on a first come, first served basis, which require eligibility checks rather than comparative scoring. For the wider nature restoration pot, a simplified application form and streamlined scoring process will be used (see Appendix 1), with an emphasis on supporting continuation of successful existing projects. 5.5 Given the need to mobilise quickly for seasonal woodland creation and habitat works, the Committee is asked to delegate authority to the Strategic Lead for Environment and Infrastructure to finalise the methodology and approve projects recommended by the Working Group. This will minimise delays and enable rapid commencement of delivery. 5.6 This approach supports delivery of the Council’s Biodiversity Duty under the Nature Conservation (Scotland) Act 2004, and enables community organisations, internal teams and landowners to progress nature restoration work without unnecessary delay. 5.7 If the proposed funding structure is approved in principle, officers will refine the detailed eligibility criteria, simplified scoring methodology, delivery model, and engagement processes, and implement these under delegated authority from the Strategic Lead for Environment and Infrastructure. 6. Conclusion 6.1 The proposed funding structure for the 2026-27 NRF provides a more strategic, targeted approach to delivering nature restoration across Perth and Kinross. By establishing dedicated pots for small‑scale woodland creation, woodland restoration, Leven LENS, and wider nature recovery, the Council can address clear gaps in national funding, strengthen ecological connectivity, and support high‑impact local projects. 6.2 Although confirmation of Scottish Government revenue funding is still pending, early approval of this approach, along with delegated authority for timely decision-making, will ensure that the Council is fully prepared to mobilise quickly once allocations are announced. This will enable projects to commence within key seasonal windows, maximise biodiversity benefits and support delivery of the Council’s statutory Biodiversity Duty.
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7. Impact and Value Assessment https://www.pkc.gov.uk/media/55074/Nature-Restoration-Fund-2026- 2027/pdf/Nature_Restoration_Fund_2026-2027.pdf?m=1775543342050 8. Appendices 8.1 Appendix 1 – Wider Nature Pot Scoring Matrix