SCVO responds to UK Government Autumn Budget 2026
Responding to Wednesday’s Autumn Budget, Anna Fowlie, Scottish Council for Voluntary Organisations' (SCVO) Chief Executive, said:
“The Autumn Budget was an opportunity for the new Chancellor to recognise and support the many contributions of voluntary organisations, their staff and volunteers, their work with people and communities and their contribution to wider society. An opportunity which was not taken.
While some aspects of the Budget announcement, such as making the increase in tax-free mileage rates permanent and the removal of the tariff on heating oil, will benefit charities and voluntary organisations, it's disappointing that the Budget doesn't recognise the specific challenges facing the sector, both in Scotland and across the UK.
“97% of voluntary organisations reported challenges in Spring 2026, an increase of 2% since Autumn 2025. These challenges are not abating and are exacerbated as charities struggle to navigate an increasingly complex socio-political environment characterised by greater demand for support and increasing social division while costs for charities, their staff, and their volunteers increase.
“Indeed, even the increased cost to the sector of implementing increased mileage rates wasn’t recognised by the Chancellor. As was the case when the Government increased employer National Insurance Contributions (NICs) - costing small and medium voluntary sector employers in Scotland at least £78 million per year – the Government has once again taken no action to ensure voluntary sector grants and contracts cover the full cost of policy change.
“Similarly, while SCVO supports Fair Work and welcomes increases in both the National Minimum Wage and the National Living Wage (though the government must go further to meet the Real Living Wage rate for all staff) there is no mention of the need for grants and contracts to increase to cover these costs or to address the long-standing pay disparities between public and voluntary sector staff, despite the voluntary sector in Scotland employing 5% of the working people the Chancellor wishes to support.
“The lower increases for those age 18 to 20 is also a disappointing weakening of the Government’s manifesto commitment to "remove the discriminatory age bands, so all adults are entitled to the same minimum wage”.
“The UK Government’s upcoming 10 year plan and Spending Review must urgently offer clarity on how the UK Government will support and resource our sector and take action to ensure the Civil Society Covenant principles are embedded across government departments, providing the stability of longer-term funding settlements as part of a transition to Fair Funding for the sector, and improving commissioning to recognise the sector as equal partners essential to achieving the Government’s ambitions.
Without sustainable investment in voluntary organisations, opportunities to deliver preventative support, reduce pressure on public services, and strengthen communities will be missed.
ENDS
For information:
Ahead of the Autumn Budget SCVO, as part of the Civil Society Group called on government to strengthen funding, unlock philanthropy and invest in communities as part of its mission to deliver good growth in every postcode.
SCVO Briefing: UK Autumn Budget 2026
