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Forestry Commission England/ Central Services Annual Report and Accounts 2016-17 Presented to the House of Commons pursuant to Section 7(3) of the Government Resources and Accounts Act 2000 Ordered by the House of Commons to be printed on 17 July 2017 HC 195 © Crown copyright 2017 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government- licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at: Public Enquiries Forestry Commission, 231 Corstorphine Road, Edinburgh EH14 5NE Print ISBN 9781474145657 Web ISBN 9781474145664 ID 240517 07/17 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office Forestry Commission England/Central Services Annual Report and Accounts 2016-17 Contents Performance report 2 Forestry Commission England is the Overview 2 government department responsible for protecting, improving and expanding Foreword by Sir Harry Studholme, England’s woodlands and increasing their Chair 2 value for people, nature and the economy. Purpose and activities of the This Annual Report and Accounts includes organisation 3 the core bodies Forestry Commission England and Forestry Commission Issues and risks 16 Central Services, consolidated with Performance summary 17 Forest Research. Long-term expenditure trends 17 Performance analysis 18 Forest Enterprise England, an executive Key performance indicators 2016-17 18 agency of Forestry Commission England, manages the public forest estate in Sustainability report 20 England. The Annual Report and Accounts Accountability report 23 of Forest Enterprise England are published Corporate governance report 23 separately. Directors’ report 23 Statement of Accounting Officer’s Honours responsibilities 24 The following Forestry Commission Governance statement 25 England/Central Services nominees were Remuneration and staff report 32 successful in the Queen’s Honour List: Parliamentary Accountability and Audit Report 44 • Amy Chandler, BEM. Community Losses and special payments – subject Ranger, Forestry Commission England. to audit 44 For services to the community • Fees and charges – subject to audit 44 Alan Motion, MBE. Chair of the Institute of Chartered Foresters Examination Remote contingent liabilities – subject Board. For Services to Sustainable to audit 44 Forestry and Arboriculture The certificate and report of the Comptroller and Auditor General to the Register of interests House of Commons 45 A register of interests of all Board Members Financial statements 47 is maintained by the Forestry Commission Consolidated statement of and published on our website: comprehensive net expenditure 47 www.forestry.gov.uk. Consolidated statement of financial position 48 Consolidated statement of cash flows 49 Consolidated statement of changes in taxpayers’ equity 50 Notes to the accounts 51 1 Forestry Commission England/Central Services Annual Report and Accounts 2016-17 Performance report Overview grow. This scheme will complement the established Countryside Stewardship mechanisms for supporting woodland The performance report overview provides: creation. The launch of Defra’s Forestry • Forestry Commission England/Central Innovation Fund has also provided Services’ chair’s and director’s views on £1 million to support the delivery of larger performance over the year woodland creation schemes. • the purpose and activities of Forestry Commission England/Central Services Forestry Commission England has also • the main issues and risks that could affect delivery of objectives been championing business growth in the • a performance summary English forestry sector. For example, we have been working with the Coast to Capital Local Enterprise Partnership which Foreword by Sir Harry has so far invested £0.7 million in West Studholme, Chair Sussex and East Surrey, one of the most wooded areas of the country. This has This year has seen us take bold steps to been matched by more than £1 million of adapt to a changing world, taking the long private investment, developing six term view needed to create the conditions hardwood sawmills and a woodfuel hub. for the nation’s woodlands to thrive for the This investment is safe-guarding existing future. jobs, creating news ones and adding value to locally grown hardwood and helping Increased global trade and the movement businesses bring more woodland back into of goods between countries means an ever active management. increasing risk of pests and diseases. Our tree health teams have been instrumental There has also been increased momentum in intercepting affected timber and related on recognising and promoting just how imports and stopping tree health threats valuable our ‘urban forests’ are. For from entering our country. We have also example, Forestry Commission England worked closely with Defra on implementing and Forest Research have this year used new tree health regulations that will help aerial photography techniques to give a us to achieve strong environmental percentage canopy cover figure for more protection without unnecessarily restricting than 250 towns and cities. Furthermore, UK trade. the Forestry Commission’s Urban Forestry and Woodland Advisory Committee Keeping our woodlands pest free is not just launched “Introducing England’s Urban the responsibility of trade however, we all Forests” as part of their work to promote a have a role to play in preventing the resilient urban forest. spread of diseases. That is why we have been working to expand our biosecurity Finally, as the Forestry Commission campaign ‘Keep it clean’ to send targeted approaches its 100th year in 2019, messages to landowners and members of England has begun the significant the public on how they can help stop giving programme of structural change that will pests an easy ride into our woodlands. determine how it will operate, following the announcement by Scottish ministers this As well as continuing to protect woodlands, year that Forestry in Scotland will go its we have been striving to deliver the separate way in that historic year subject government’s commitment to plant to the will of the Scottish parliament. 11 million trees this Parliament, launching this year a new funding opportunity. The All of these challenges will remain next Woodland Carbon Fund, with a budget of year, but our hard work in 2016-17 has £19.2 million, will help the UK to meet put us on a strong footing to rise to them future carbon budgets, increase the area of and continue doing what we do best: woodland in England and enhance our protecting, improving and expanding natural capital, providing recreation England’s forests and woodlands and opportunities and helping businesses to 2 Performance report Forestry Commission England/Central Services Annual Report and Accounts 2016-17 increasing their value to society and the continue to deliver a wide range of environment. economic, social and environmental benefits Purpose and activities of the • evidence: Ensuring that there is a organisation robust evidence base available to the forestry authorities across the UK to underpin their policies, decisions and Who we are advice • standards: Setting the standards for Forestry Commission England is sustainable forest management and responsible, as government’s forestry woodland carbon projects in the UK and experts, for advising ministers on forestry promoting it domestically and matters and for implementing forestry internationally policy. We achieve this through the management of a 250,000 hectare estate Our values and by enabling other landowners to protect, improve and expand their Our values determine how we behave in woodlands. We achieve this in line with fulfilling our objectives. They are as internationally recognised standards of follows. sustainability. • teamwork – We work collaboratively The Forestry Commission is a with each other and our stakeholders, non-ministerial government department ensuring trees, woods and forests meet and has a Royal Charter. While most the needs of society forestry functions are now provided at • professionalism – We enjoy and take country level, a number are still provided pride in our work, acting with integrity centrally. and political impartiality to achieve high standards of health and safety, quality, Our priorities efficiency and sustainability • respect – We value each other and our Forestry Commission England/Central stakeholders, recognising diverse Services works with others to protect, perspectives and treating everyone improve and expand our nation’s forests with consideration and woodlands, increasing their value to • communication – We are open, society and the environment. honest and objective with each other and our stakeholders. We are prepared Everything we do is focussed on achieving to challenge and to be challenged the following objectives: • learning – We are always learning, developing the skills, knowledge and • protecting our trees, woods and behaviours to support organisational forests from increasing threats such as success pests, diseases and