Politics

Election results across the world have created political uncertainty in recent years. Geopolitical events, and global economic headwinds have driven both inflation (see The Economy) and social unrest (see Society) 

• The Scottish Parliament election took place on 7 May 2026, with a new Parliament (session 7) now in place. The SNP has been returned as the largest party by a significant margin, forming the Scottish Government, with John Swinney reappointed as First minister. While this represents continuity in leadership, the overall composition of the Parliament has shifted. Both Labour and the Conservatives recorded historically poor results. Reform UK secured representation for the first time. The Scottish Greens increased their number of seats, recording their strongest result. The Liberal Democrats also increased their representation.  
• In the immediate aftermath of the election, SCVO wrote to the First Minister setting out the key challenges facing the voluntary sector and calling for early action. This included the need to deliver fair, flexible and multi-year funding; strengthen partnership working between the sector and public bodies; and ensure that voluntary organisations are supported to play their full role in delivering for people and communities. 
• The First Minister outlined his priorities for the parliamentary term, including: easing the cost of living, protecting the NHS, growing the economy, ensuring community cohesion, and protecting the environment. These priorities are likely to shape the policy and funding environment for voluntary organisations. 
• Following the election, the First Minister also appointed a new Cabinet and Ministerial team. This includes the appointment of Jenny Gilruth as Deputy First Minister and Cabinet Secretary for Finance and Local Government, and the creation of a dedicated Cabinet Secretary role for Public Service Reform, held by Ivan McKee MSP. This reflects an increased focus on public service reform and delivery, which will be particularly relevant to voluntary organisations working in partnership with the public sector. 
• The new Scottish Government will set out its policy agenda for the parliamentary year, typically through a Programme for Government published after the summer recess, followed by the Scottish Budget later in the year. These will be key moments for voluntary organisations to engage with decision-makers and influence priorities, particularly around funding, commissioning, and partnership working. 
• During the last session of the Scottish Parliament (session 6) progress towards “fairer funding” for the sector by 2026 – a commitment made by the previous Scottish Government – was slow. The commitment includes increasing multi-year funding arrangements, making reporting and monitoring proportionate, ensuring prompt notification of decisions, and reviewing grant conditions. The final Programme for Government of the parliamentary term was published in May 2025, earlier than usual. As part of this policy prospectus, the Scottish Government launched a suite of “Fairer Funding” pilots backed by £130 million. The pilots began in April 2025 across a range of policy areas. An evaluation published in November 2025 found they had a positive impact on staffing, organisational stability, and future planning. 
• In January 2026, the Scottish Government published a Spending Review, which set resource spending plans for 2026-27 to 2028-29 (see The Economy). In response to the Spending Review, SCVO expressed concern at the lack of progress in progressing in reforming the voluntary sector funding landscape.

• With 41 Scottish seats changing hands at the July 2024 election, many voluntary organisations found themselves needing to build relationships with a new MP in their constituency.   
• Since the UK General Election there have been a number of UK Government Cabinet and Ministerial re-shuffles, alongside changing membership of parliamentary committees. This has meant new relationship building for Scottish voluntary organisations that seek to influence on reserved matters. 
• The Labour government continues to frame its approach as ‘mission-driven’, focusing its efforts on five key areas: growth, the NHS, clean energy, safer streets and opportunity. A route-map – Plan for Change: Milestones for mission-led government – was presented to parliament in December 2024. 
• In a challenging fiscal climate, early decisions by the government have drawn mixed reactions within the sector. An increase to employers’ National Insurance contributions for medium and large voluntary sector employers, introduced as part of the UK Government’s 2024 budget, and coming into force in April 2025, was criticised by many in the voluntary sector.  
• In June 2025, the UK Government published a Spending Review, which set department budgets for 2026-27 to 2028-29 (see The Economy). In response SCVO called for the Scottish Government to take a more strategic, long-term, approach resourcing for the voluntary sector in Scotland, while reflecting the true costs of delivery. The UK Government has introduced a Civil Society Covenant to define its relationship with the voluntary sector. While primarily focused on England, elements are relevant to Scotland – particularly on reserved matters. A Civil Society Council has been established by the Prime Minister to oversee implementation of the Covenant. The devolved nations share a place on the Council, with the chief executive of WCVA joining initially on behalf of Wales, Scotland and Northern Ireland. 
• These developments will shape the funding and policy context for reserved matters, and voluntary organisations may need to engage with UK Government departments and MPs on issues such as employment costs, funding streams, and regulation. 
• We continue to encourage the Scotland Office to adopt the principles in the Covenant in their work with the sector in Scotland. There was a commitment to reset the relationship between UK and Scottish Governments but, so far, the signs are that relations remain challenging. 
• The UK Shared Prosperity Fund (ending in April 2026) has been replaced by the Pride in Place Programme and the Local Growth Fund. The Pride in Place programme will be delivered in 12 local authorities and ‘Neighbourhood Boards’ will be established at local level to decide what the investment will be spent on. Five regions will benefit from the Local Growth Fund that focuses on driving economic growth across Scotland. Funding has been allocated via Regional Economic Partnership (REPs) in proportion to their population.

• In September 2024, the Community Planning Improvement Board published guidance for fair funding of the voluntary sector; this has been endorsed by Council Chief Executives and Leaders through a COSLA Leaders meeting, as well as other partners such as the NHS 
• At the same time, a number of local authorities and Integrated Joint Boards (IJBs) introduced in-year budget cuts for voluntary organisations, and warned of further cuts to come in 2025/26 (see The Economy)  
• Relationships between Scottish Government and local government have been strained for some time, particularly around finances and the Verity House Agreement. 
• Local government continues to face severe financial pressure, which continues to have implications for the voluntary sector, with COSLA warning of significant budget shortfalls in the costs of delivering local services. This continues to have implications for the voluntary sector.  
• COSLA published its Manifesto 2026, setting out its asks of the next Scottish Government—including sustainable multi‑year funding, greater local democratic powers, strengthened partnership working, and investment in the local government workforce. 
• Local Government elections will take place in May 2027. Activity is likely to build during 2026 as political parties develop manifestos and councils begin to set priorities for the next term. This creates an opportunity for voluntary organisations to engage with political parties and influence local priorities, particularly around funding, commissioning, and partnership working at a local level.