When calling for Fair Funding principles and asks to be adopted by the Scottish Government, it is important to track the commitments that are made in response. Not only does this allow us to keep on top of the relevant commitments made over the years, it also allows us to subsequently monitor any meaningful progress as a result of specific commitments.
The Scottish Government has made numerous commitments to aspects of Fair Funding over previous years:
2015 | In 2015, in an interview with Third Force News, then-First Minister Nicola Sturgeon described multi-year funding as the “common sense” approach, committing to achieving this for the sector. |
2021 | Ahead of the 2021 Scottish Parliamentary Elections, each of the five major parties included commitments to multi-year funding in their manifestos, including a commitment by the SNP to “move to a five-year funding cycle for eligible third sector and grassroots organisations that are at the forefront of saving lives”. |
In December 2021, the Finance Secretary at the time, Kate Forbes MSP, told Parliament that “multi-year spending is hugely important” in relation to the voluntary sector. | |
2022 | Then-First Minister Nicola Sturgeon told the Gathering in 2022 that the Scottish Government wanted to “deliver fairness and stability” in terms of voluntary sector funding, acknowledging that the sector needed certainty and sustainability. |
In December 2022, the Scottish Budget 2023-24 stated, in response to concerns about sector funding raised by the Social Justice and Social Security Committee, that “adopting Fairer Funding practices is something [the Scottish Government] intend to progress in the next financial year. The Scottish Government will continue to work with the sector to tackle the barriers it continues to face.” | |
2023 | In early 2023, the now-Cabinet Secretary for Finance and Deputy First Minister, Shona Robison, told the Social Justice and Social Security Committee that multi-year funding should be the “default” for voluntary organisations, highlighting that it would “help third sector organisations to plan beyond year to year.” |
With the appointment of the new First Minister, in April 2023 the Scottish Government published its policy prospectus, Equality, opportunity, community: New leadership – a fresh start, in which the Cabinet Secretary for Social Justice committed to have “progressed Fairer Funding arrangements, including exploring options to implement multi-year funding deals” by 2026.” It is important to note that this Fairer Funding commitment is yet to be specifically defined by the Scottish Government. However, from commitments that have been made in relation to this, we believe Fairer Funding to be an increase in the number of two-year grants delivered by the Scottish Government, prompt notification of funding arrangements for the third sector, and improvements to grantmaking processes to provide greater clarity and consistency of practice. | |
Similarly, the Scottish Government’s Medium-Term Financial Strategy, published in May 2023, committed to adopting multi-year spending plans, recognising that these would both offer greater transparency on the impact of annual budget decisions on future years’ spending plans and give stakeholders confidence in the trajectory of public spending, enabling financial planning. | |
In relation to delivering Fairer Funding by 2026, the Scottish Government’s Programme for Government 2023-24 also committed to producing “a plan to deliver improvements including greater clarity and consistency of existing arrangements, recognising the sector’s strategic role in enabling the transformation and delivery of person-centred services for the people of Scotland.” | |
Ahead of his keynote speech at the Gathering, the First Minister committed to “developing a Fairer Funding approach” in Third Force News in October 2023, referencing “prompt notification of funding, outcome-based flexible funding, and proportionate administration around applications and reporting” as prioritised aspects. And during that speech, Mr Yousaf gave “firm assurance” that the government was considering ways to provide increased stability through multi-year funding. | |
In a response to a written question by Colin Smyth MSP in December 2023, the Cabinet Secretary for Social Justice committed “to issue notifications of funding arrangements to third sector organisations, as soon as practicably possible and no later than end of March for funding beginning on 1 April.” | |
2024 | During the Social Justice & Social Security Committee's evidence session on Budget Scrutiny 2024-25 in January 2024, the Cabinet Secretary for Social Justice reaffirmed the commitment to "delivering Fairer Funding for the third sector", confirming that the Scottish Government will "ensure prompt notification of grant awards to third sector bodies, increasing the number of multiyear awards, and review grant conditions". |
At SCVO's #EssentialSector parliamentary reception in April, hosted by Paul O'Kane MSP, the Cabinet Secretary for Social Justice reiterated the Scottish Government's commitment to implementing Fairer Funding. | |