A Labour MSP for Lothian has rung alarm bells about the barriers to funding for small, community-based organisations.
Foysol Choudhury yesterday (17th January) hosted a roundtable at the Scottish Parliament for third-sector community organisations to discuss the current funding model, barriers to access for smaller organisations, and what lessons could be learnt.
The roundtable attendees and MSPs heard from Citadel Youth Centre, Edinburgh and Lothians Regional Equality Council (ELREC), EVOC, North Edinburgh Arts and The Larder.
Mr Choudhury is Chairperson of ELREC and will be well aware of the challenges faced by third sector organisations.
Following the roundtable, Foysol Choudhury praised the work of these third-sector organisations in working so closely with, and to benefit of, local communities. He said, however, that more could be done to support these vital organisations to be more included in the funding process:
“The third sector in Scotland is a vital contributor to both the economy and society as a whole.
“The recent Scottish Budget announcements have left many organisations in the third sector unable to be sure of secure funding for the year ahead, directly impacting on their ability to provide vital services to communities when they need it the most post-pandemic and during the cost-of-living crisis.
“It was made clear from today’s discussion that sustained, long-term and fair funding is needed for the sector.
“Some third sector organisations may be smaller, but they have a big impact and they must be consulted with and represented in the Scottish budget.
“This is especially true where they cater to minority communities and exclusion from the budget may increase inequalities for those communities.”
Mr Choudhury says that the conversation at the table today was positive and collaborative but that the organisations were also “crying out for more support and recognition of their vital work”.
Organisations at the roundtable raised how many smaller organisations were in competition with each other for grants and core funding, so the system should facilitate more collaboration.
Other groups also raised how smaller organisations are missing out on funding because they don’t meet criteria, or don’t have the experience and funds to hire fundraisers to make applications like many bigger organisations do.
Mr Choudhury says he will continue to build on this constructive conversation and represent small third-sector community organisations in the Scottish Parliament, pressing for more funding and consultation wherever possible.
Budgets are about spending priorities, and Labour trails both the SNP and the Conservatives at Holyrood. Elections to the Scottish Parliament will not take place until May 2026.
Of more immediate concern for voluntary sector organisations is the current budget process. The city council (a Labour-led coalition with Lib-Dems and Conservatives) is looking at further cuts as it sets it’s budget for 2024 – 25.
Councils blame the Scottish Government for funding cuts while Holyrood in turn blames the UK Government at Westminster. It’s a blame game that’s gone on for as long as I can remember, and while the politicians bicker, the poorest communities – and the charities and voluntary sector projects that support them – bear the brunt and feel the pain of service cuts.
That’s got to change – but sadly change, if it comes, will come too late for many – Ed.
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