A week before Christmas, the Scottish Government announced a budget for 2024 to 2025 that contains words of hope for the Scottish third sector. However, we need to see these words translated into action in the new year and beyond, and any shortfalls must be proactively addressed.
In this post, we will highlight the points of promise and concern within the proposed budget. We will also share insights from the TSI Scotland Network about the budget’s effect on specific themes.
We’re pleased this announcement acknowledged the challenges of the present economic landscape and recognised some of the demands we’ve been hearing from the sector, including:
- Investment in employability services with a commitment to future multi‑year funding
- Commitment to funding fair work and real Living Wage salaries
- Review of grant models guided by commitments to Fairer Funding for the Third Sector
Living Wage salaries and fairer funding are two components that are necessary to keep our third sector robust, and we welcome the government’s pledge to deliver Fairer Funding by 2026, which was restated in this budget announcement.
However, with the challenges of the next two years ahead of us—including global instability, high rates of inequality, and UK government cuts—the move towards fair funding will not come soon enough.
Many organisations are struggling to meet spiralling running costs and pay wages against the backdrop of static grant awards. These organisations, who bring so much value to our communities and our country, cannot all afford to wait until 2026.
Furthermore, we share concerns raised by the TSI Scotland Network that the proposed budget cuts will put a strain on the resources of third sector organisations. Here are some highlights from their initial response:
‘Some of the most obvious funding reductions may affect the sector’s capacity and ability to respond to emergencies, to deliver important local services at a time when they are needed more than ever.
‘We share the concerns of others about the effects of the Budget on poverty and equality and crucial safety nets e.g. the Fuel Insecurity Fund and the Scottish Welfare Fund. Any reductions here will undoubtedly lead to more people in real crisis turning to local charities and community groups.
‘The lack of any real detail on social care could lead to further pressure on local organisations working with disabled and older people and unpaid carers.
‘As Health Boards call on families and communities to do more during another difficult winter, the impact of national decisions on important community infrastructure could actually lead to increased demand on health and care services.’
TSI Scotland Network initial response to Scottish Budget 2024/25 – read it in full here
The First Minister promised in November that Scottish Government would move beyond warm words of support for the third sector. We hope to see some concrete examples of this in the coming year.