The Scottish Council for Voluntary Organisations is the membership organisation for Scotland's charities, voluntary organisations and social enterprises. Charity registered in Scotland SC003558. Registered office Caledonian Exchange, 19A Canning Street, Edinburgh EH3 8EG.
SCVO response to Medium-Term Financial Strategy (MTFS)
Responding to Wednesday’s Medium-Term Financial Strategy, Kirsten Hogg, Scottish Council for Voluntary Organisations' (SCVO) Head of Policy and Research, said:
“To achieve the Scottish Government’s commitment to Fairer Funding by 2026 and recognise the importance of a thriving Third Sector in Scotland, the Medium-Term Financial Strategy (MTFS) needed to set out the Scottish Government’s plans for multi-year funding, and make commitments on progressing Fairer Funding more broadly.
"This Strategy offered neither.
"While the Cabinet Secretary’s recognition of the impact of increased employer National Insurance Contribution (NICs) costs on voluntary sector employers is welcome, if, as she suggests, multi-year funding is to be one of the policy solutions the Scottish Government adopts to support organisations with these additional costs urgent action was needed, but not taken, in the MTFS, to extend multi-year funding much wider than the current pilot, to voluntary organisations contributing to Scottish Government priorities across all departments.
"While the MTFS recognised the benefits of multi-year pay deals for the public sector workforce, and that this certainty improves public services and outcomes for the people and communities, there was no recognition of the voluntary sector’s essential contribution to public service delivery or the need to ensure voluntary sector staff benefit from multi-year grants and contracts, which should cover the full costs of employing staff.
"This Strategy, like many promises made by Scottish Government over the years, once again asks the Scottish voluntary sector to wait for support, while 81% of charities and voluntary organisations face financial challenges and more than one in 10 have no choice but to stop one or more strands of their work.
"Our sector makes a significant contribution to the Scottish economy and the government’s ambitions to end child poverty, grow the economy, tackle the climate emergency, and improve public services.
"To support this, our sector needed action, not warm words and empty promises."
Ends
Notes to editors:
Essential services at risk as vast majority of Scottish charities face financial insecurity.
SCVO Briefing: Medium Term Financial Strategy.
