Evidence library

This report pulls together what we know about public sector funding from the latest SCVO Sector Stats based on analysis of over 600 charity accounts, with additional information from the Scottish Third Sector Tracker and other sources.

The public sector is currently the single most important source of income for the Scottish voluntary sector, worth around £3.3 billion in 2023. There has been a slight fall in the value and relative importance of public sector funding to the sector now that Covid-related funds have ended, combined with the impact of inflation.

• Public sector funding made up 40% of the sector’s income in 2023.
• Only 4 in 10 voluntary organisations get public sector funding, but for many it is critical.
• Funding from the public sector was worth an estimated £3.3bn in 2023.
• Public sector funding has stayed at 2021 levels in cash terms but fell by 5% in real terms (-£177m).
• Local authorities account for around half of all public sector funding, and Scottish Government accounts for just under a third. The rest comes from NHS/Health & Social Care Partnerships, UK Government and European funds and Non-departmental Public Bodies.

Downloads

• PublicSectorFunding2025.pdf