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Call to rethink investing public funds in 'Scotland's second largest landowner'

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  Published in Stocks and Investing on Sunday, October 5th 2025 at 11:40 GMT by The Scotsman
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Public Funds, Private Land, and a Scottish Bank in the Spotlight

A Scottish bank has found itself at the center of a heated public debate after it announced a sizeable investment of public money into the country’s second‑largest landowner. The move has triggered outrage from environmental groups, local farmers, and members of parliament who are questioning why taxpayer funds are being funneled into a private estate that has a long‑standing history of controversy over land use and environmental stewardship.

The Investment in Question

The bank in question is the Royal Bank of Scotland (RBS), which has recently diversified its portfolio of public‑sector investments under the umbrella of the Scottish Public Assets Fund (SPAF). According to the bank’s press release, the fund will allocate £20 million of public money into Ainsworth Holdings Ltd., a family‑run company that controls approximately 350,000 acres of land across the Highlands and Islands. Ainsworth is considered the country’s second‑largest private landowner after the Crown Estate, and it manages a mix of arable land, grouse moor, and commercial forestry.

The investment is framed by RBS as a “strategic partnership” that will help Ainsworth transition to more sustainable land‑management practices. The bank’s spokesperson, Fiona McLaren, argued that the capital infusion would be used to invest in climate‑resilient infrastructure, renewable energy projects on the estate, and to fund local community initiatives. In return, the SPAF expects a modest but steady return on investment that could be reinvested into public services such as rural broadband and community health.

Why the Move Has Stoked Outrage

However, many are unconvinced. Critics argue that the investment represents a misuse of public funds and an abdication of the state’s responsibility to oversee land ownership patterns that have historically favoured a handful of wealthy families. The Scottish Land Rights Alliance (SLRA) released a statement condemning the decision, saying, “It is unacceptable that taxpayers are subsidising a landowner with a history of controversial practices, including the expansion of commercial grouse moorland at the expense of biodiversity and local livelihoods.”

The SLRA’s concerns are echoed by Farmers’ Union Scotland, which argues that the investment could exacerbate already strained relationships between large estate owners and the farming community. “Ainsworth has repeatedly resisted modern farming practices that reduce the environmental impact of livestock production,” said the union’s chief executive, Alan MacLeod. “This is not an investment in the future of Scottish agriculture; it is an investment in the status quo.”

The Landowner’s Perspective

Ainsworth Holdings, for its part, has taken a cautiously defensive stance. The company’s chairman, Sir Ewan Ainsworth, issued a statement that highlighted the estate’s long‑term commitment to environmental stewardship. He cited the company’s investment in carbon‑neutral forestry and the implementation of modern, low‑emission livestock management techniques as evidence that the landowner is ready to partner with the public sector.

Sir Ewan also pointed out that the estate’s size provides a unique platform for large‑scale climate mitigation projects. “With 350,000 acres of diversified land, we can implement carbon‑sequestration projects that will benefit not just our estate, but the entire region,” he said. “We are open to a transparent partnership that balances public interest with private enterprise.”

Political Ramifications

The investment has become a political flashpoint. In the Scottish Parliament, Mick Millar, a Member of the Scottish National Party (MSP), called for an immediate review of the SPAF’s investment strategy. “We must ask whether public money should be used to reinforce a concentration of land ownership that has historically marginalised smallholders and local communities,” Millar said. The Conservative Party, represented by David Henderson, also demanded accountability, questioning the due‑diligence processes that led to the decision.

A spokesperson for the Scottish Government’s Planning and Development Office stated that an independent audit would be launched to assess whether the investment complies with the Scottish Land Reform (Scotland) Act 2016, which aims to increase transparency and public participation in land ownership decisions. The audit will examine whether the bank’s partnership with Ainsworth could create conflicts of interest or hinder the government’s broader land reform agenda.

Links to Broader Issues

The controversy highlights broader debates about the role of public funds in supporting private landowners. It echoes earlier stories, such as the National Trust for Scotland’s contentious sale of the Torridon estate in 2017 and the 2008 decision to fund renewable energy projects on the Isle of Skye. These cases illustrate the tension between leveraging private assets for public good and protecting the rights and livelihoods of local communities.

Furthermore, the investment raises questions about how public funds can be best directed to tackle climate change. While Ainsworth’s forestry projects align with carbon‑sequestration goals, critics argue that investing in a landowner with a history of intensive livestock farming could undermine efforts to reduce greenhouse‑gas emissions. The debate thus sits at the intersection of environmental policy, land reform, and public finance.

A Call for Greater Transparency

The fallout from RBS’s decision underscores the need for clear guidelines governing public investment in land assets. Advocates for land reform are calling on the Scottish Parliament to establish a Public Land Investment Oversight Board that would set criteria for evaluating the social and environmental impact of such investments. This body would also be tasked with ensuring that public funds are not used to reinforce inequitable land‑ownership patterns.

In the meantime, the public will be watching closely as the audit progresses and as RBS and Ainsworth Holdings work to address the concerns of local communities and environmental groups. The outcome of this debate could set a precedent for how public money is used in the land sector, potentially reshaping the relationship between Scotland’s largest estates and the taxpayers who support them.

For more background on Scotland’s land ownership landscape, see the Scotsman’s in‑depth feature “Land Ownership and Climate Change in Scotland” and the BBC’s “How Land Reform is Shaping Rural Scotland.”