New research from SCVO outlines the state of the sector’s finances
Charities across Scotland have continued to draw on their reserves “unsustainably” despite funding from government staying relatively stable, new research shows.
The Scottish Council for Voluntary Organisations (SCVO) has published its latest research, State of the Sector 2024, which shows the challenges which organisations across Scotland continue to face.
The paper, which contains key figures and trends from the Scottish voluntary sector, shows funding from government has stayed relatively stable, while income from the public has to a large extent recovered after being hit hard by Covid.
Unfortunately, for many voluntary organisations inflation and expenditure rises have matched and outpaced these hard-won gains.
While most organisations were able to stay in the black, the margins are wafer-thin and there has been a steady rise in the numbers of organisations ending the year with a deficit. In 2023, 45% of charities spent more than they managed to generate.
These narrow margins and rising deficits have seen charities continue to draw on their reserves unsustainably while they try to identify new sources of funding or have to consider reducing services – link to Reserves doc and Tracker.
SCVO also published a review of Scottish voluntary organisations’ financial reserves, which found the value of the funds looked after by the sector fell by £1billion between 2021 and 2023.
The average value of funds held by large charities fell by £5million, from £17m in 2021 to £12m in 2023.
Half of medium and large charities now have less than six months expenditure in reserves and nearly 1 in 3 large charities has less than three months of expenditure in reserves.
Ilse Mackinnon, SCVO Research Officer, said: “It’s been sobering looking at charities’ accounts this year and seeing just how tight finances are for many. People have been telling us via the Tracker and anecdotally that things are tough, but it’s another thing seeing the figures in black and white.
“It’s great that many income streams have recovered but we also saw essentials like energy bills, rents and staff costs shoot up, sometimes to double what they were the previous year.
“We can see the impact of that on reserves, with many charities struggling to meet costs and keep enough cash back for emergencies.”
New figures show possible cost of increased trade barriers
Analysis published yesterday by the Office of the Chief Economic Advisor has estimated Brexit trade barriers could impact Scotland’s economy by £4 billion.
This estimated economic cost is from the reduction in trade alone – not counting changes to productivity, investment or migration.
Business Minister Richard Lochhead said the report demonstrated the urgent need to reverse the damage of Brexit to boost living standards and revenue for the NHS.
According to the Trade Modelling Report, Scottish exports could be lower by 7.2% or £3 billion compared to continued EU membership.
The chemical and pharmaceutical sector is estimated to be one of the hardest hit by post-Brexit trade barriers, with an estimated 9.1% reduction in output, followed by the computer and electronics sector with an estimated 7.7% fall. The 4.9% output drop estimated for the agrifood sector represents a loss of £827 million.
Business Minister Richard Lochhead said: “On the eve of the fifth anniversary of Brexit, these new figures highlight the urgent need to change course to boost the economy and increase public revenue for the NHS.
“This is the latest in a long line of studies highlighting how badly Brexit continues to impact Scotland and should cause the UK Government to consider its approach to economic growth.
“The Scottish Government has been clear that Scotland’s place is in the EU and the huge European single market. But we are also a voice for greater co-operation with the EU right now and we urge the new UK Government to forge a much closer relationship with our fellow Europeans.”
Smart Data Foundry (SDF) has been awarded £3 million funding to operate a new Financial Data Service, enabling more researchers to study the financial health of millions of households across the UK, by providing secure access to financial behaviours, economic resilience, and regional economic activity.
The funding is made by Smart Data Research UK, which is part of UK Research and Innovation (UKRI).
The new service, which will operate from SDF’s base at Edinburgh Futures Institute, will be part of a network of five other data services across the country.
Together, they will put the UK at the forefront of smart data research and innovation. Providing safe and efficient ways for researchers to access and use the smart data generated through everyday interactions with the digital world, including via mobile apps, navigation systems, social media and shopping.
Led by SDF’s Dougie Robb and Professor Chris Dibben from the University of Edinburgh, the new Financial Data Service will provide unprecedented insights into the economic health of the UK through secure access to de-identified banking and finance data from millions of households and businesses.
Since its establishment in 2022, SDF has earned national recognition for its work using anonymised financial data for public good, including research in partnership with NatWest Group into how Covid-19 affected how people earned, spent and saved during and post pandemic and its work with Sage and CEBR on their quarterly SME tracker.
Dougie Robb, SDF’s Interim CEO, said: “We look forward to joining five of the most forward-thinking data service organisations in the UK in this groundbreaking network. It will foster data sharing partnerships between academia, public institutions and private enterprise leading to public good outcomes which will improve the lives of people across the UK.
“In partnership with the University of Edinburgh (UoE) we’ve made great progress in holding and making available for public benefit research financial data resources. We have forged fruitful data partnerships with NatWest Group, Virgin Money, SAGE, and Equifax, and built a team of transdisciplinary experts with expertise across finance, banking, digital technology, product, data science, and information governance.”
Professor Chris Dibben added: “Understanding the financial situation of households across the UK is a vitally important for social and economic research. However this key aspect of economic life is often poorly measured in our research datasets or even absent.
“This investment by Smart Data Research UK in a Financial Data Service will allow us to change this situation, enabling more public benefit social and economic policy research. I am really excited to be working with Smart Data Foundry and SDR UK to deliver this significant new resource over the next three years.”
By partnering with financial institutions and leading research institutes, the new Financial Data Service will deliver insights into productivity, prosperity and health and wellbeing, providing access to detailed evidence about financial behaviours, economic resilience, and regional economic activity.
This data will enable researchers to tackle urgent policy challenges including the cost-of-living crisis, financial inclusion, the changing nature of employment, and productivity in different economic sectors and geographic places.
The service will enable a transformation in the UK’s understanding of how economic shocks and policy interventions affect different communities, helping policymakers design more targeted and effective responses to economic challenges.
Magdalena Getler, Head of Academic Engagement at Smart Data Foundry, said: “With the new Data (Use and Access) Bill currently going through Parliament, we are at the beginning of a new age for data.
“If successful, the new legislation will empower safe data use, access, and sharing for the good of society like tackling challenges such as the impacts of poverty and economic inactivity.”
Also awarded funding in this latest tranche was Smart Energy Data Service, part of the Energy Systems Catapult. All six will work collaboratively as part of the Smart Data Research UK programme.
These two new data services join four others previously announced:
· Imagery Data Service (Imago)
· Smart Data Donation Service
· Geographic Data Service
· Healthy and Sustainable Places Data Service
A strategic hub based within the Economic and Social Research Council (ESRC) will provide leadership and coordination. It will also offer common services and ethical guidance.
Joe Cuddeford, Director of Smart Data Research UK, said: “Our six interconnected services will enable researchers to access unprecedented insights across finance, energy, health, geography, and beyond – empowering innovative solutions to complex societal challenges facing the UK today.”
Stian Westlake, Executive Chair of the Economic and Social Research Council, added: “This investment in a new network of smart data services helps put the UK at the forefront of data-driven innovation.
“Data infrastructure is as critical to our shared prosperity as transport, water or power networks. When we invest in data infrastructure we are investing in economic growth, improved public services, and a more sustainable future.”
A groundbreaking new imaging approach developed by researchers at Heriot-Watt University has shown ‘extremely encouraging’ results in early-stage clinical trials on prostate cancer at the Western General Hospital in Edinburgh.
The ongoing clinical trial demonstrated an initial 94% sensitivity rate in tumour detection. The new test is delivered in less than 20 minutes and relies on existing clinical ultrasound equipment.
The cost of an ultrasound scanner is a fraction of an MRI scanner (around 10%), so the new approach provides clinicians with a valuable new tool to help better guide prostate biopsies and focal therapy, a technique that destroys cancer cells.
All men are at risk of prostate cancer with 1 in 8 diagnosed with the disease in their lifetime. 52,000 men in the UK are diagnosed with prostate cancer every year – 144 every day.
Currently, a relatively unreliable blood test, called a Prostate Specific Antigen or PSA test, means many men are unnecessarily sent for an expensive MRI scan in an attempt to spot cancerous tissue. Current long waiting lists for tests mean treatment can be delayed.
Despite using multi-parametric MRI (mpMRI – a specialist type of scan) for prostate cancer diagnosis, up to 28% of clinically significant tumours are missed and 1 in every 2 individuals with positive MRI findings receive a negative biopsy result.
Less Grey Imaging Ltd is a spin-out from Heriot-Watt University, Edinburgh, with the mission to bring greater clarity to prostate imaging. The technology offers clinicians up to a 20-fold increase in resolution compared to mpMRI, which provides a grey and difficult-to-read image.
The new imaging test begins by injecting a commonly used contrast agent into a vein that contains millions of tiny and harmless microbubbles that travel through the patient’s bloodstream to the prostate.
The team uses a technique known as super resolution ultrasound imaging (SRUI) to track these microbubbles as they flow inside the prostate. Due to the altered blood flow in cancerous tissue, the image highlights previously unseen tumours, enabling earlier diagnosis.
Dr. George Papageorgiou, CEO of Less Grey Imaging, explains how the new technique aligns well with histopathology, the diagnosis and study of diseases of the tissues which involves examining tissues or cells under a microscope. He said: “Our initial clinical findings in prostate imaging align well with histopathology, highlighting its potential to reliably detect clinically significant prostate cancer.
“Currently, prostate cancer diagnosis varies widely across the country, with many patients being diagnosed too late for curative treatment. By integrating ultrasound more prominently into the diagnostic pathway, we can ensure equal opportunities for early diagnosis across all regions of the UK.
“Less Grey Imaging’s mission is to revolutionise prostate imaging by delivering clarity and precision. Urologists will have an imaging tool that enables accurate diagnoses and quicker decision-making. Our software deploys existing ultrasound equipment to enhance image quality down to microscopic detail. By minimising reliance on radiologist assessment, we intend to streamline workflows, reduce NHS costs, and improve patient efficiency.”
The potential of the technology has been recognised by Innovate UK, which awarded the company a £370,000 grant through its ICURe Exploit Funding programme. This is being used to support the company’s product development and attract further investment.
The UK has a higher cancer mortality rate compared to several other developed countries, and more recently, the Darzi report, a bleak review of the NHS published in September 2024, revealed that waiting times targets for the first treatment for cancer have not been met since December 2015.
Professor Vassilis Sboros from Heriot-Watt University and co-founder of Less Grey Imaging, explained how the technique can help support an NHS that is fit for the future. He said:“Our super-resolution ultrasound imaging technology provides a leap in imaging resolution.
“By utilising existing ultrasound scanners found in hospitals and clinics worldwide, we’re able to produce high-resolution images of the prostate that clinicians have never seen before. This is exactly what the new Government needs to tackle the challenges facing the NHS.
“Back in 2019, we proved the concept worked in our lab but now we have shown it works during our initial patient trials. It’s just like looking inside the body with a microscope, allowing clinicians to see 20 times more detail than before. Even concealed tumours are possible to identify.
“With one man dying from prostate cancer every 45 minutes in the UK, we hope earlier detection will radically improve treatment outcomes, saving lives while reducing the number of people sent for unnecessary and often risky tests.”
Professor Alan McNeill is a Consultant Urological Surgeon at the Western General Hospital, Edinburgh and founder trustee of charity Prostate Scotland. He said: “The initial trial results are extremely encouraging, providing really useful information for the diagnosis and treatment of prostate cancer. This is the most common cancer in men but, if it is caught early while the cancer remains within the prostate, it can be cured in the majority of cases.
“The technology has the potential to significantly enhance diagnostic accuracy, help clinicians like me to carry out more targeted biopsies and even focus treatments with greater precision.
“I can anticipate it benefiting treatments like focal therapy by allowing us to pinpoint and treat cancerous tissue with greater accuracy. Nearly every week, my colleagues and I meet men in their 50s or early 60s suffering from advanced prostate cancer that leaves them with fewer treatment options. We continue to raise awareness and encourage earlier diagnosis for all men.”
Gary Tait was treated for prostate cancer five years ago after his wife, a practice nurse, encouraged him to see his GP. He is now Chair of Edinburgh & Lothian Prostate Cancer Support Group. He said: “Being diagnosed and treated for prostate cancer is an incredibly anxious time so it is very positive to see these trial results which indicate that the new ultrasound technique could lead to more accurate diagnosis of prostate cancer.
“From the perspective of men who are unaware of a developing tumour in their prostate, this improved method of diagnosis could lead to earlier treatment which improves the likelihood of a good outcome.
“We fully support the development of this new technology which raises the possibility of enabling more men to be both diagnosed and treated earlier than they can be at present.”
Professor Gill Murray, deputy principal of business and enterprise at Heriot-Watt University, said: “This breakthrough exemplifies Heriot-Watt’s commitment to transforming innovative research into real-world healthcare solutions with global applications.
“Less Grey Imaging represents exactly the kind of high-impact spinout company we aim to nurture – one that combines cutting-edge science with clear commercial potential and significant societal benefit.
“These early clinical trials are particularly encouraging as they demonstrate how our research excellence can help address critical healthcare challenges while creating economic opportunities.
“By developing technology that makes cancer diagnosis more accessible and accurate, we’re supporting the NHS and positioning Scotland as a leader in medical innovation.
“Addressing global challenges through the real world application of our research is why we established our Global Research Institutes. Each institute has its own distinctive DNA, and our global research institute in health and care technologies excels in the creation and growth of new innovative businesses.
“Less Grey is a fantastic example of one of these businesses and perfectly aligns with our enterprise strategy of fostering research-led companies that can scale globally while delivering tangible benefits to patients and healthcare systems worldwide.”
Fighting cancer is one of the five key themes for Health and Care Technologies. Anyone interested in collaborating with the new Health and Care Technologies global research institute at Heriot-Watt University can contact GRID@hw.ac.uk.
This vital initiative aims to investigate how environmental factors, such as sunlight exposure, temperature variations, and air pollution, impact the risk of stillbirth.
Around 13 babies die shortly before, during or soon after birth every day in the UK and 2,680 of these deaths were stillbirths in 2022. More children die around the time of birth than at any other time of childhood, yet only 2.4% of UK health research funds go to reproductive health and childbirth.1
Philanthropic funding is vital in enabling Sands to fulfil its mission to end baby deaths and help families rebuild their lives. For over a decade, Teddy’s Wish has been committed to supporting Sands in memory of Jen and Chris Reid’s beloved baby, Eddie.
Through their generosity, Sands has been able to advance research aimed at understanding why some babies die unexpectedly. The Environmental Influences on Stillbirth project will explore how the environment a woman is exposed to during pregnancy affects both maternal and fetal health.
Jen Reid,Co-Founder and CEO of Teddy’s Wish said: “Teddy’s Wish is committed to funding research that brings us closer to understanding and preventing baby loss. We are delighted to be jointly funding this important research project with Sands to explore the impact of environmental influences on stillbirth with the hope that more babies will be delivered safely.”
The link between environmental factors and stillbirth has not yet been studied in-depth in UK populations. This research will link environmental data with comprehensive Scottish maternity records, providing a robust dataset to study potential environmental risk factors.
Dr Murray, Consultant in Maternal and Fetal Medicine and Honorary Senior Clinical Lecturer at the University of Edinburgh, said: “This work is a step forward in understanding the complex and unknown factors that may contribute to stillbirth.
“Our findings could inform future public health guidelines and targeted interventions, especially in areas with high levels of air pollution.”
The research has the potential to reduce stillbirth rates across the UK by providing clinicians with clearer understanding of how the environment impacts on pregnancy and the baby’s wellbeing. The research insights could help people in government and the NHS improve maternity care for pregnant women and babies.
Janet Scott, Sands’ Head of Saving Babies’ Lives team, said: “Through this research, Sands and Teddy’s Wish aim to support advances in the health of babies and mothers, reducing the devastating impact of stillbirth on families across the country.
“Thank you to Teddy’s Wish for your unwavering support in helping save more babies’ lives and transform the life of future generations of families.”
New research from Local Government Information Unit (LGIU) Scotland reveals that 70% of all councils believe they will be unable to pass a balanced budget within the next five years without immediate changes.
The second annual State of Local Government Finance in Scotland, found councils are taking every measure available to balance their budgets including raising council tax, reducing expenditure and increasing fees and charges, sharing services and engaging in commercial activity. However, many councils believe this will still not be enough to prevent the risk of an unbalanced budget.
Nearly every respondent said they believe cuts to services will have a negative impact on quality of life in their council, and over 90% that cuts will increase the risks to vulnerable people.
The report found satisfaction with the Scottish Government is alarmingly poor across the sector. Not a single respondent said they were happy with the Scottish Government’s performance on delivering a sustainable funding system or considering local government in wider policy decisions.
Respondents representing 84% of Scottish councils, made up of council leaders, CEOs and CFOs said times are increasingly hard for local authorities, with ongoing pressure from the cost of living crisis and inflation adding new burdens on top of long-term challenges: demographic change, financing of Scottish Government priorities, and pressures with recruitment and retention of staff.
With councils’ confidence in the sustainability of council finances critically low, the sector is in favour of widespread reform, including multi-year financial settlements, ending ring-fencing, and reform of council tax.
Councils are optimistic about the role that local government, sufficiently funded and empowered, could have to advance the prevention agenda, tackle local and national shared priorities, deliver services and empower communities.
The report recommends an agreed national convention between Scottish Government and local government to cover procedures and actions that would then be needed to set a balanced budget; enshrining in legislation the principles of the Verity House Agreement, and committing to an annual review by Scottish Parliament covering the key principles.
Some of the medium to long-term recommendations include reconsidering a whole-system approach to funding wider public finances including a review of council tax, the funding formula and increasing the range of revenue-raising options available for councils.
Jonathan Carr-West, Chief Executive, LGIU Scotland, said: “This year’s results make for grim reading about the state of local government finances in Scotland. The message from our second annual State of Local Government Finance in Scotland builds on last year: we are nearing the point of no return. The report paints a picture of a system under continual and significant strain, with the scale of financial pressures increasing from 2023.
“Local government finances in Scotland are hanging by a thread. However, the thread has not yet broken. Today’s report delivers a stark warning that councils are in a precarious financial position and there is not much time until the sector starts to see potentially catastrophic consequences.
“Change is urgently needed. Councils will soon be unable to balance their budgets, meet their statutory duties, or provide for their communities. We need to change course now before it is too late.
“The challenge now is how do we move from the situation we are in now, to one where councils are able to deliver the transformative impact they are confident that they could deliver.
“Reform is necessary, empowerment will be essential, and trust between Scottish Government and local government – in a critically poor state – must be restored.”
The LGIU asked Scotland’s Council Leaders, Chief Executives and Chief Finance Officers about their experiences trying to run councils in the last financial year, and their views on how councils’ financial sustainability could be assured.
COSLA Resources Spokesperson, Councillor Katie Hagmann, commented:“The publication of today’s report by the LGIU highlights the sheer scale of the financial challenges facing our councils.
“The fact that 70% of councils in Scotland may be unable to balance budgets in the near future should serve as a warning to all. Additionally, it emphasises the need for the Scottish Government to provide Local Government with an increased funding settlement which is both fair and flexible in 2025/26.
“COSLA also welcomes the LGIU’s call for a whole system approach to Local Government finance.
“This echoes our asks in our ‘Invest Locally in Scotland’s Future’ budget lobbying campaign. Without a clear focus on prevention and upstream investment, along with local flexibility, our councils will be unable to tackle higher demand, in key areas such as homelessness prevention and social care.
“COSLA is calling for the Scottish Government to provide at least £14.5bn in revenue funding and £872m in capital funding in the 2025/26 Budget.
Meeting this demand would not make up for the cuts councils have faced and felt by our communities in recent years, however it would be a positive step forward in providing fair and flexible funding to meet the challenges outlined in the LGIU report.”
Registered women’s charity, Soroptimist International Great Britain & Ireland (SIGBI), is celebrating its 90th year by relaunching its national railway safety project.
On 1-3 November, the charity – which has consultancy status at the United Nations – held its 90th conference at the Assembly Rooms in Edinburgh and used this milestone occasion to take a fresh look at a project first carried out 28 years ago.
First launched in 1996, ‘The Future of the Railways’ was an investigation into personal safety on the railways, which the charity’s members – known as Soroptimists – used to lobby the Government into taking action to do more to protect women on public transport.
It was launched in response to a Soroptimist being attacked on a train in the London area.
Soroptimists carried out grassroots research into the views and experiences of women passengers, as well as speaking to station managers and staff and visiting over 500 over-ground stations across Britain.
SIGBI published a report making recommendations to the UK Government on how to improve safety in stations, claiming the Government’s approach to passenger safety in railway stations was ineffective.
To further advance the work being done, the charity is kickstarting the project again – asking the same questions to the UK’s railway stations, to see how much has changed, as well as expanding it to airports and bus stations, to obtain a more detailed bigger picture of women’s safety across the country. The charity is also questioning whether the Government’s approach to passenger safety has moved on since 1996.
Over 500 women attended the three-day conference, with each day having a different theme – educate, empower, and enable.
Ruth Healey, President of SIGBI, said: “We’re so proud of the work our members have carried out over the last 90 years.
“The goal of all our projects is to stand up for women and girls, advocating for equal rights, opportunities, and representation. The relaunch of our railway safety project will be key in advancing this important issue and bringing it to the forefront of policy makers’ agendas.
“It was only in August this year that the British Transport Police reported that violence against women and girls on British railways has risen by more than 50% over two years.
“Clearly, more needs to be done, and urgently. We’re proud to be playing our part in helping to shape a safer environment for women when travelling.”
Soroptimists are carrying out ‘Bystander Awareness’ training in communities up and down the UK, in a bid to help identify and prevent violence against women and girls.
As well as panel discussions, and an address from Baroness Floella Benjamin, the charity also hosted its Best Practice Awards at the conference – a scheme which celebrates clubs’ projects.
At the conference, the charity also collected over 2,300 pants for Edinburgh-based charity, Smalls for All – a charity that collects underwear for people in the UK and Africa who can’t afford or access any.
Maria Macnamara, Founder and CEO of Smalls for All, said: “Giving pants and bras may seem like a small thing, but it can make a life-changing difference. Each month many teenage girls miss school, and women miss work, because of a lack of access to underwear means they’re forced to stay at home during their period.
“Demand remains huge in Africa, but, in recent years, has also increased significantly in the UK.
“We’re so grateful to have been part of the SIGBI conference to share our message and express our thanks to the Soroptimists for the wonderful donations they’ve made, both at this conference and over the years.”
Ruth concluded: “It’s been incredible getting so many Soroptimists in one room to reflect on what we’ve achieved, as well as to look ahead to the next phase of some of our key projects.
“It’s only by working together that we can empower women and girls to achieve their full potential and eliminate barriers and discriminations that hinder women’s progress.”
To mark the charity’s nine decades, Soroptimists are also completing a ‘90 for 90 years’ challenge – including everything from supporting foodbanks, to knitting for premature baby units, to donating items to domestic abuse charities, and more.
More than 14 million people in the United Kingdom (UK) are currently living in poverty, and the number of people experiencing deep poverty is increasing (Joseph Rowntree Foundation, 2024).
We worked with the Mental Health Foundation and researchers from the University of Strathclyde on this report, where we examine how experiences of poverty stigma are related to mental health outcomes in the UK.
Our aim was to understand the impact of poverty stigma and who is most affected in order to inform solutions.
Two unique Jurassic fossil discoveries from the Isle of Skye have shown that mammals in the time of the dinosaurs grew more slowly and lived longer than mammals today.
A new study in Nature by an international team of researchers led by National Museums Scotland describes two Krusatodon kirtlingtonensis fossils, one adult and one juvenile, both discovered in Skye.
These mouse-sized mammals lived around 166 million years ago. The specimens represent the only juvenile Jurassic mammal skeleton known to science, while the adult is one of the most intact mammal skeletons from this time period in the world.
The discovery of a juvenile and adult of the same species of early mammals is unique and has allowed groundbreaking comparative analysis into their growth and life history. The ages of the specimens at death were determined using X-ray imaging to count the growth rings in their teeth.
The adult was found to be around 7 years old and the juvenile between 1 – 2 years, and still in the process of replacing its baby teeth. This was possible thanks to X-ray computed tomography carried out in several laboratories, including the European Synchrotron (ESRF).
Today, small mammals have significantly shorter lifespans, some living as little as 12 months, and maturing quickly, losing their baby teeth and weaning within months of birth. The Krusatodon fossils reveal for the first time that the earliest mammals didn’t finish replacing their teeth until well into their second year of life, possibly later. This tells us that a fundamental shift in the growth patterns and life expectancy of mammals must have taken place during or after the Middle Jurassic.
The specimens were discovered decades apart, with the adult being one of the earliest Jurassic finds on Skye in the 1970s, while the juvenile was discovered in 2016.
Dr Elsa Panciroli, lead author and Associate Researcher of Palaeobiology at National Museums Scotland, said: “These fossils are among the most complete mammals from this time period in the world. They give us unprecedented insights into the lives of the first mammals in the time of dinosaurs.
“Although on the outside Krusatodon looked like a shrew or mouse, on the inside it was quite different; it grew more slowly and lived much longer than small mammals do today. As a result, it probably had quite a different physiology and life history as well. Skye’s fossils are really putting Scotland firmly on the map when it comes to understanding mammal evolution.
“This is just the tip of the iceberg in terms of what they can tell us.”
Dr Stig Walsh, Senior Curator of Vertebrate Palaeobiology at National Museums Scotland and co-author on the study, said: “Even in the context of the amazing palaeontological finds on Skye in recent years, these fossils are remarkable.
“Mammal fossils of this age are exceptionally rare worldwide, and most are just single teeth found by sieving sediment. To find two such rare fossil skeletons of the same species at different growth stages has rewritten our understanding of the lives of the very earliest mammals.
“We’re thrilled they are both now part of Scotland’s National Collection, an important part of the global fossil record, and will be preserved for generations of researchers to come.”
In addition to National Museums Scotland, the study also involved researchers from the American Museum of Natural History, University of Chicago, European Synchrotron Radiation Facility, and Queen Mary University of London.
Prof. Roger Benson from the American Museum of Natural History said of the fossil found in 2016: “When we found the tiny juvenile skull I didn’t realise what we’d found right away.
“The part of the fossil that was sticking out of the rock was blasted by erosion, surrounded by barnacles, and looked just like a piece of ash. I used micro-CT scanning, a form of 3D X-ray imaging, and was very surprised to see a whole skull in the rock. For science,
“it’s really remarkable to have this fossil and it told us a lot about growth and life history in some of the earliest mammals”
Dr Elis Newham, a Postdoctoral Research Associate at Queen Mary University of London said: “Our study benefited greatly from a new technique we developed using synchrotron X-ray technology.
“This allowed us to analyse growth patterns in the teeth of these fossils, much like counting tree rings. It was surprising to discover that Krusatodon, while showing a similar development pattern to modern mammals, grew much slower and lived longer.
“This research emphasises the value of studying juvenile fossils, and the X-ray cementochronology technique offers a powerful tool for unlocking these secrets from the past.”
The paper was published in Nature yesterday, 24 July 2024.
Whether it’s developing skills and training to enter the workforce, investing in buildings and equipment, or providing services to fill gaps left by the public sector, the voluntary sector plays a significant part in the UK economy. However, measurement of its economic contribution is inherently complex, meaning the role it plays is often undervalued (write CIARA CRUMMEY and MAIRI SPOWAGE of FRASER of ALLANDER INSTITUTE).
There are several difficulties in measuring this economic contribution compared to methods used for the private sector. One reason for this is a lack of an adequate, recognised definition across the sector, which leads to wide variation in valuations.
Core National Accounts can be used to estimate the voluntary sector, through the Non-Profit Institutions Serving Households (NPISH) sector. However, the UK voluntary sector is much larger than the organisations that are included within NPISH, given the specific definition of this sector. Voluntary organisations are spread across sectors and industries in the National Accounts, so the use of NPISH results in significant undervaluation of the sector’s economic contribution.
It will answer questions surrounding NPISH and the National Accounts and improve measurement of the sector within the UK National Accounts framework. This project builds on previous FAI research on Scottish charities and links to other ESCoE work on National Accounts and beyond GDP.
Why does this matter?
The inability to measure the voluntary sector’s contribution to the UK economy limits its comparison to the non-voluntary sector, meaning that it may be undervalued or overlooked. Accurate measurement would allow for better recognition of the sector’s economic contribution.
This could encourage further volunteering and involvement and investment in the sector, along with better use and allocation of resources. Unleashing the potential of the voluntary sector by measuring it more accurately could also allow its inclusion in economic growth strategies to improve both regional and national economic performance.
What are the possible solutions?
Significant research has been conducted into how the voluntary sector can be measured more accurately, and what data is required to do so. Various methods have been identified to produce a variety of estimates of the size and contributions of the sector. These methods have used different definitions of the sector.
Extensive research has been conducted into the use of satellite accounts, as an extension to National Accounts, to measure both the size and impact of the voluntary sector.
National Accounts provide a single overview of all economic activity in a country through collating and presenting the output, expenditure, and income activities of a country’s economic actors; satellite accounts provide a framework that is linked to the National Accounts but allows for a more detailed focus on a certain field or aspect of the economy.
Stakeholders have highlighted that the existence of a satellite account is as important as what it includes to provide validity for the sector. They recommend that an initial satellite account should start with the simplest definitions and be improved with further additions over time. It should take a modular approach, allowing for different definitions of the sector, and should allow for comparisons with other sectors in the economy.
In 2023, Pro Bono Economics conducted an in-depth feasibility study into satellite accounts and developed a preliminary framework for its creation.
Their recommended short-term approach uses the legal status on the Inter-Departmental Business Register (IDBR) and organisation type in the Labour Force Survey (LFS) to identify organisations that are not included in NPISH but are considered to be within civil society. They suggest a modular approach where data can be broken down and compared by Standard Industrial Classification (SIC) codes.
They also propose an ‘intermediate approach’ to capture organisations within civil society that have been missed. They provide details on how to identify these organisations, where to access relevant data and how to select what data to include. However, they acknowledge that this ‘intermediate’ approach is still limited in measuring all aspects of the sector and highlight the need for further research on volunteering, social enterprises and growth measurements.
Whatever form a satellite account takes in the UK, it is clear from previous research that one of the biggest challenges is the delineation of the sector. Given the different views of stakeholders, it is likely that a ‘menu’ of definitions is likely to be required to ensure this product has greatest utility for users.
What issues remain?
Despite these significant recent advances, issues still remain in measuring the voluntary sector and capturing its economic contributions.
The first issue is the lack of a clear, adequate definition that is recognised and adopted across the sector. Until this is agreed, measurement methodologies and estimates will continue to differ.
NPISH in the National Accounts is also an inadequate measure of the voluntary sector. NPISH is defined as economic units that supply services on a non-commercial basis. To be considered, NPISH institutions must: provide goods and services either for free or below market prices; mainly derive their income from grants and donations; and not be controlled by the government. Therefore, NPISH does not capture all voluntary sector organisations.
As a result, using the value of the NPISH sector significantly underestimates the economic contribution of the voluntary sector. Additionally, the methodology used by the Office for National Statistics (ONS) to create these estimates in unclear and not publicly documented, so it cannot be critiqued or replicated in devolved countries’ national accounts.
Finally, while the Pro Bono Economics report has made great advances in the technicalities of constructing a satellite account, several questions still remain to ensure the entire sector is accurately measured.
This includes a need for further understanding on how the IDBR legal status flag is constructed and how to capture other organisations not included on the IDBR (including many small organisations).
Additional considerations include how to capture informal volunteering, data collection on sources of funding for organisations, how to identify social enterprises and how to prevent double counting across multiple data records.
A new research project
Our project aims to answer some of these questions surrounding NPISH and the National Accounts. It will focus on three elements:
Documenting ONS methodology for calculating NPISH
Interviewing data providers and users
Investigating recommendations for data on the voluntary sector used in National Accounts
1. Documenting ONS methodology for calculating NPISH
Through this project we will formally document the full methodology used to create the NPISH statistics in the National Accounts. NPISH includes charities, higher education and further education, political parties, and trade unions, and we will highlight what data is used for each of these elements.
In particular, we will focus on documenting the data process for charities, at both the National Council for Voluntary Organisations (NCVO) level (who provide charity data to the ONS), and how the ONS then use this data. NCVO provide ONS with data for charities in England and Wales, collected from the Charity Commission register.
These charities undergo a ‘market test’, where charities that ‘fail’ the market test (if 50% or more of income comes from donations and legacies) remain in NPISH, and the rest are captured in the industrial market sectors of the National Accounts.
We will document and review these processes and outline recommendations for improvements on how to make NPISH more representative of charities outwith England and Wales and allow for replication in both regional and devolved National Accounts.
2. Interviewing data providers and users
We plan to interview key practitioners in the sector about their understanding of the role of data in the development of national accounts. These will include national infrastructure organisations involved in producing the data for the accounts, organisations that might use the accounts for their work understanding and campaigning about the sector, and government officials. We will identify what role they think National Accounts plays in their work and how they think it shapes understanding of the voluntary sector within society.
3. Investigating recommendations for data on the voluntary sector used in National Accounts
Following on from our interviews with providers, we will recommend improvements and investments in the data infrastructure for the voluntary sector, ensuring regulators, voluntary sector representative organisations, and statistical producers are focussed on supporting the production of appropriate and accurate statistics about the sector. We will investigate the IDBR flag recommendation underpinning the PBE recommendations for a satellite account. A better understanding of this flag will identify if it would be possible to use this flag to describe voluntary organisations across the National Accounts, including those currently considered outside the NPISH sector.
We will also analyse the data collected for charities in Scotland and Northern Ireland to identify how this can be included in UK NPISH calculations in addition to NCVO data. Finally, we will examine the sectors charities self-report into, and design a mapping methodology between different industry classification codes This will ensure greater consistency in the classifications used across charity registers.
As part of this final research stage, this ESCoE research project will support an economic student summer placement through the Economics Futures programme, hosted at the Fraser of Allander Institute.
This placement will focus on highlighting the differences in charity registers held across the UK. We will then use the data held in the charity registers in Scotland and Northern Ireland as a proxy to estimate the number of charities that are under the minimum registration requirements in England and Wales, so are not captured in their register. This same methodology will be applied to identify charities missing from UK business register data, to inform recommendations on expanding the data used for measuring the charities in NPISH.
Overall, this research will provide a review of the current National Accounts practise. Our recommendations have the potential to improve the National Accounts construction methodology and allow for more accurate measurement of NPISH in both UK, regional and devolved country’s National Accounts.
This will complement the building of a civil society satellite account, if the underpinning National Accounts are fundamentally more robust.
