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Response and Reflection: The 2025-2026 Scottish Budget

Home » News » Response and Reflection: The 2025-2026 Scottish Budget

Scottish Government Budget 2025-2026: A missed opportunity to fund the third sector fairly?

As part of the TSI Network, here are our thoughts on what the recently announced Scottish Budget draft means for the third sector locally and nationally.

We’d love to know what you think, so please complete our quick Scottish Budget Survey to help us advocate for you going forward.

Commenting on the budget, a spokesperson for the TSI Scotland Network, said the new Scottish budget was a great step forward in beginning the reinvestment process in our communities and valued local services. The commitment to developing plans to mitigate the two-child benefit limit underlines an approach from government that is based on fairness, justice and a commitment to eradicating child poverty.

“The budget narrative clearly supported our asks to invest in Public Service Reform combined with extra funds for social care and family support services as well substantial increases for our under-pressure NHS, housing and council services.”

“However, what is unclear is the method of investment in reform and change. The old top-down models of investing in high tariff services will not meet the challenge of rising demand and an aging population.“

“For that we need to see the Scottish Government mandate the NHS and councils to collaborate with local communities and third sector organisations in commissioning and planning a fairly funded network of local services on a multi-year basis. Only then will be see a concerted shift in spend towards early intervention and prevention at a community level.”

The spokesperson also noted that there remained concern over the lack of uplift in the Third Sector Infrastructure budget – which amounts to a real terms cut – as well as a lack of specific investment in Community Wealth Building. As the budget is debated through Holyrood we would also like to see further detail on local climate action and consistent investment in employability programmes.

The TSI Scotland Network will continue to call on Government to ensure communities and a sustainably funded third sector are at the heart of public service reform.

The Network has four main asks:-

Ask 1: Invest in collaborative third sector delivery models to support public sector reform

Ask 2: Fairer funding to enable the systems change the Scottish Government seeks

Ask 3: Direct funding to communities that is shaped by local people and groups

Ask 4: Support the TSI Scotland Network to lead on change and fund it to do so.

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