The Conservative Party's search for efficiency savings has discovered that taxpayers are paying millions of pounds a year to fund holidays in log cabins run by the Forestry Commission.

Tony Caplin, a member of the James savings review, said this would contribute to £477 million of savings in the Department of Environment, Food and Rural Affairs.

"We see no justification for the state to continue to subsidise, at taxpayers' expense, a loss-making forest holidays business currently operated by Forest Enterprise," he said.