Barking up the right tree: is forestry & timber the key to unlocking economic growth?

The government is grappling with several significant challenges over the course of this parliament, including climate change, the housing crisis and driving economic growth. As flagship manifesto commitments, the government has invested significant political capital in addressing these issues and will be judged on their success at the next election, expected in 2029. The timber and forestry industries offer a viable solution to all three, with the potential to reduce emissions, create jobs, and help the government meet its ambitious housebuilding target of 1.5m new homes by 2029.

The government recognises this and published its ‘timber in construction roadmap’ in February 2025, in which it said it wants to increase the production and use of sustainable homegrown timber. The government has introduced a statutory tree and woodland cover target which commits to increasing the tree canopy and woodland cover in England to 16.5% by 2050, given the UK currently has some of the lowest tree cover in Europe.

The UK is the second largest net importer of forest products. This is unsustainable and, in an increasingly volatile geopolitical environment, exposes the UK economy and supply chain to significant risk. In turn, dependence on overseas imports contributes to a decline in native species. Currently, the political appetite for the sector favours woodland creation and its potential to meet the UK’s biodiversity and nature restoration commitments. The creation of commercial forestry is not being prioritised or afforded sufficient political attention despite being a significant economic growth opportunity.

There are opportunities for businesses operating in this space to engage with government and policymakers to ensure the sector’s views are being heard and considered in policy and regulatory development. Currently precision breeding is geared towards food systems, yet the application of this innovative technology extends beyond this. The rapid review of the environmental improvement plan has now concluded and a revised plan in due to be published later this year with a renewed focus on biodiversity. The forestry and timber industry should be raising its voice to ensure the environmental opportunities of a homegrown commercial forestry industry are fully harnessed.

There is an exciting story to tell for a homegrown timber and forestry industry. While onshoring other industries such as steel and petrochemicals can be environmentally detrimental, there are clear benefits of commercial forestry that are both environmental and economic.

If you’d like to discuss this in more detail, including how GK Strategy can support you with government relations and communication, please contact Thea Southwell Reeves.

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