Moves from Scottish Government welcomed but more support needed.

Leading voices from Scotland’s third sector warned that ministers in Holyrood had paid “lip-service” to a by not reforming a “broken public funding landscape” in today’s budget. 

Finance Secretary Shona Robison unveiled the SNP Government’s spending plans on Wednesday, including a pledge to “scrap” the two-child cap on benefits in Scotland, increase funding for housing, and small changes to tax levels. 

She challenged opposition parties to support her spending plans. 

Despite the plans, concerns were raised by those in the third sector about the lack of movement on Fair Funding for charities and voluntary organisations. 

Kirsten Hogg, head of policy and research at the Scottish Council for Voluntary Organisations (SCVO), said: “While lip-service continues to be paid to reforming the broken public funding landscape voluntary organisations contend with, today’s budget takes us no further forward.  

“This is despite the Social Justice and Social Security Committee’s pre-budget call for a funding system that is fair, flexible, sustainable and accessible – in line with SCVO’s Fair Funding calls.  

“We stand ready to support the government to make those recommendations a reality. The prize is a sustainable sector, strong public services, and resilient communities – one the Scottish Government should grasp with both hands.”  

On the continued fall-out from HM Treasury’s plans to hike employer National Insurance contributions, SCVO also raised issues.

SCVO welcomed a move from ministers in Holyrood to press Westminster on plans to raise National Insurance contributions from employers.  

Ms Hogg added: “It is welcome that the Scottish Government will continue to press the Treasury to fully fund increase employer National Insurance costs for organisations delivering public services. 

“If the Chancellor cannot be convinced to do the right thing, however, these costs cannot fall to voluntary organisations. 

“The Scottish Government must plan for all eventualities. That means urgent clarification that its own financial commitments to voluntary organisations in the year ahead will cover the full costs of service delivery, with other public bodies resourced to do the same.” 

Other third sector organisations had their own concerns about the sustainability of charities and voluntary organisations. 

Derek Mitchell, CEO of Citizens Advice Scotland, said: “We heard a lot today about financial pressures, difficult decisions. And we understand that.

“Let’s be clear, those facing the harshest financial pressures and the most difficult of decisions every single day are the people like those the Citizens Advice network supports day-in day-out in every corner of Scotland. 

“It is people worried about meeting the most basic and essential needs. It’s people who are worried about keeping their home warm or how to feed their kids tonight. And that needs to change.

“In terms of what we heard today, the restoration of the affordable homes budget is hugely welcome, as well as the commitment to ending the two-child limit. As the Cabinet Secretary outlined, this will require close collaboration with the UK Government.

“Alongside the need for stable and secure public services is an equivalent longer-term commitment to the essential work of our sector so we can continue providing life-changing advice across Scotland every day.

“Whether it’s unaffordable bills, the social security safety net or access to essential public services, we now need to see a collected and coordinated effort from both governments, and an absolute laser focus on outcomes that improve people’s lives.”

Sara Thiam, chief executive of Prosper, added: “The Finance Secretary had limited room for manoeuvre in this Budget and we therefore welcome some of the announcements that she made - such as the investments in the offshore wind industry and affordable housing, and the rates reliefs for some businesses. 

“The commitment not to introduce any new bands or increase the rates of Scottish Income Tax for the rest of the Parliament will be welcomed by employers to support recruitment and retention and incentives to work, and avoid exacerbating pressures on wages.

“However, it is disappointing that funding for growing the economy seems to have been reduced again and that the funding for universities and colleges does not go far enough to strengthen their stability, competitiveness, and skills, research and innovation delivery. 

“We welcome the steps that the Finance Secretary announced on public sector productivity and reform, which must be a higher priority going forward. However, we had hoped to hear more for her on support for third sector organisations, many of which face great cost pressures and play important roles in communities and public service delivery.”

Scottish Care expressed its deep disappointment and frustration at the glaring omission of clear and targeted support for social care in the Scottish Budget. 

Despite record investment headlines, this budget has failed to address the urgent sustainability challenges facing the social care sector, the group said. 

Children’s charities also said they needed to see more from the SNP Government, with Children’s 1st saying that more than promises of “jam tomorrow” were needed. 

Save the Children said the move to remove the two-child cap is welcome, but would not eradicate child poverty itself. 

Following the Scottish Government’s investment of £768million in affordable homes and a commitment of £4m for homelessness and prevention pilots, Alison Watson, director of Shelter Scotland, said: “We welcome the Scottish Government’s acknowledgment that last year’s cut to the affordable housing budget was a mistake. Since then, misery has needlessly been inflicted on thousands of households who have had to live first through the distress of losing their homes, and then having nowhere to turn because local services have been decimated. 

“Today’s reversal of the cuts to housing and investment in local services are welcome. Now it is time for a step change in how the Scottish Government tackles Scotland’s housing emergency and the pace at which it does so. 

“Of course, we accept the reality of budget pressures but if the Scottish Government wants to be taken seriously when it tells us it's still committed to tackling child poverty then it needs to prove it is serious about ending child homelessness. 

“That means showing that today’s cash can deliver change for the more than 10,000 children who will wake up facing homelessness this Christmas Day - the highest number on record and more than double the figure from a decade ago.  

“Building more social homes is the only way to end the housing emergency, and the government knows this. 

“Investment in social housing is investment in the people of Scotland, and generations to come.”