Forests: Environment Protection
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the Department for Environment, Food and Rural Affairs' press release entitled Government steps up action to tackle illegal deforestation, published on 23 June 2026, what criteria were used to determine that businesses with an annual turnover exceeding £1 million should fall within the scope of the proposed due diligence requirements.
Answered by Mary Creagh
The proposed £1 million annual turnover threshold is intended to strike a proportionate balance between maximising the impact of the regulations in reducing illegal deforestation, minimising unnecessary burdens on business and protecting the UK Internal Market. Our aim is to ensure that requirements apply to businesses with the greatest ability to influence supply chains and implement due diligence systems.
Current analysis indicates that while micro businesses make up a large proportion of businesses using the relevant commodities, they account for a much smaller share of overall commodity use. Excluding these businesses therefore prevents disproportionate administrative burden on the smallest firms, while retaining coverage of the majority of commodity flows linked to deforestation risk.
The Government will consult businesses, trade bodies and other interested parties on the proposals and will carefully consider the evidence and consultation responses when developing the final legislation. A full Impact Assessment will be developed and published in line with the Better Regulation Framework, assessing costs, benefits and economic impacts of the proposals on businesses and other stakeholders.
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