Young Enterprise Scotland had seen its core funding withdrawn by ministers.
The Deputy First Minister has confirmed the government will step in to save a Scottish charity from closure. 

On Tuesday, Kate Forbes confirmed in Holyrood that Young Enterprise Scotland would have its funding covered to ensure it remains viable. 

Budget cuts and funding changes meant the 30-year-old charity had lost its £480,000 core grant, with the government previously accused of not fulfilling funding promises. 

All 31 of the group’s staff had been issued with redundancy notices, threatening the services which support thousands of young people every year. 

But Ms Forbes has said assurances have been provided to the charity now, and that management will ensure the ongoing viability of the group. 

She said: “I will be very clear: funding for Young Enterprise Scotland has not been withdrawn.

“Since 2022, the Scottish Government has advised Young Enterprise Scotland, along with other stakeholders, that all future entrepreneurial education programmes will move to competitive funding. That approach is consistent with other entrepreneurial funds and is in the DNA of entrepreneurship.

“Although Young Enterprise Scotland was not successful in bidding for entrepreneurial education funding because of the strength of other applications, many of which had not previously received government support, I met the chair and chief executive of Young Enterprise Scotland this morning to update them on the conversations about additional support that had already taken place with officials, and I have approved the requested £285,000 to run into this year the two programmes that were previously funded by the Scottish Government. 

“That will cover expenditure to date for the financial year from April 2024 to March 2025. Young Enterprise Scotland has confirmed that that will ensure the organisation’s on-going viability.”