Hansard

I am pleased to open this stage 3 debate on the Charities (Regulation and Administration) (Scotland) Bill. I thank all the members of the Social Justice and Social Security Committee, past and present, for their diligent scrutiny of the bill during stages 1 and 2 and for their support for its measures and the amendments that have been made. I also thank the committee clerks and other staff of the Parliament, who, as always, have provided support to MSPs throughout the passage of the bill. I thank my bill team for all the hard work that they have done both for my predecessor, Shona Robison, and for me.

I also want to highlight my gratitude to all the stakeholders who have taken the time to express their views on the bill through oral and written evidence to the committee, and through discussions with the Scottish Government. That evidence provided us with a clear understanding of the day-to-day experiences that are faced by charities across the country. As the bill is a technical one, the contributions of legal professionals have also been invaluable to the refinement of the provisions.

I am grateful to the Office of the Scottish Charity Regulator for its work over a number of years with the Scottish Government to get the bill to this point. OSCR has been key to identifying the changes that are needed to modernise charity regulation to ensure that public trust and confidence in charities remain high. I specifically thank OSCR’s legal and policy advisers for their expertise and input through the process.

It is not often that we get a bill with as few amendments as this bill has had at stages 2 and 3. On behalf of the Government, I wish that all stage 3 processes were as quick as this one has been. On reflection, that is partly because of the cross-party support for the bill as well as its technical nature. I thank members for their contributions and I am grateful for the way in which we have all attempted to improve the legislation as it moved through the parliamentary process. That is based on the fact that we recognise that the charity sector is a vital partner to all of us in society, and it certainly is a vital partner to Government in supporting our communities.

Many of us, right across the chamber and across the country, are involved with charities in a personal capacity, either as trustees or volunteers, and are very aware of their work in our constituencies and just how much they contribute, day in and day out. I take this opportunity to thank all the volunteers and staff who give their valuable time and energy to this essential sector—you are all critical to the health and wellbeing of our people, places and communities.

Of course, I would also like to thank all the people who support charities through donations, in whatever form they take. The latest sector overview report from OSCR sets out that Scottish charities have a combined income of more than £14 billion each year. That clearly demonstrates how widely they are supported by the public, which in turn can happen only if the public trust charities. Research shows that trust in charities and what they deliver is high, and we all want to keep it that way.

On Friday, I had the pleasure of attending the Scottish charity awards, which are organised by the Scottish Council for Voluntary Organisations. I was genuinely humbled by the passion and innovation in that room, which were exemplified by the winners of the charity of the year award, Diversified. Established in Livingston, Diversified is Scotland’s first autistic and neurodivergent youth-led charity. People involved in the charity use their own lived experience to help to design and lead services for neurodivergent young people. It was a real pleasure to meet people from that charity at the awards on Friday, and it was a pleasure to see all the finalists receive their awards. We did not talk much about charity regulation and charity law on the night, but I hope that it forms the basis of the trust that people can have in charities to allow all those individuals to carry out the good work that they do.

I am sure that members will all agree when I say that the talent and breadth of experience in Scotland’s charity sector are truly exemplary and something that we can all be proud of. The Government’s focus is to ensure the best possible conditions for the charity sector to thrive and support our communities, and that is the aim of the bill.

Members will be aware that there is significant support for the reform and modernisation of Scottish charity law. There is also a desire from many who work in and with charities for a broader review of the future of charity regulation. I recognise that, which is why I have agreed that, following the passage of the bill, the Scottish Government will initiate a wider review of charity regulation. I repeat that commitment here today and make clear that we will start conversations with the sector, including the SCVO, this year on the scope of that review.

Moving on to the details of the bill, it makes practical improvements and updates to existing charity regulation—namely, the Charities and Trustee Investment (Scotland) Act 2005. The bill is built around proposals put forward by OSCR, based on its operational experience since the 2005 act came into force. In addition, following engagement with OSCR and the Law Society of Scotland, the record of charity mergers at section 12 of the bill was added, as was a list of minor or technical amendments included in the schedule.

The bill has a range of different provisions designed to enhance the existing framework. Each of the provisions falls under one of three primary aims. The first aim is to increase transparency and accountability in charities by improving public access to information about a charity’s operations. The second aim is to provide stronger powers for OSCR, including the power to issue positive directions to help charities address regulatory issues. The third aim is to bring Scottish charity law up to date with some key aspects of charity regulation in England, Wales and Northern Ireland, enhancing public trust in charities and further protecting charitable assets.

I valued the committee’s positive conclusions and constructive recommendations in its stage 1 report—in particular, the recommendation to include a review and appeal process for any disputes in relation to OSCR’s ability to appoint interim trustees, which resulted in the Government amendment at stage 2.

I have also listened to members’ and the committee’s views and recommendations around communicating these legislative changes. I wrote to the committee to set out the Government’s plans for commencement of the bill, as has OSCR, which has confirmed that it will share its draft communication plan with the committee for its consideration in advance of engaging with the sector.

In addition, amendment 1—with Jeremy Balfour’s assistance—will enhance OSCR’s reporting duties, ensuring that it sets out in its annual report to Parliament the work carried out that year to promote awareness and understanding among the sector of the requirements of charity law.

I was also pleased that, at stage 2, we were able to bring forward some clarifications to the rules around reorganisation of endowments held by statutory charities. Although impacting only a small number of charities, the costs involved in such reorganisations can be substantial for the organisations involved.

The bill makes practical improvements and updates to existing charity regulation and the role of OSCR. It is intended to sustain the effective and supportive regulation of charities during what we know are challenging times for the sector. There is broad agreement from members and stakeholders on the general principles of the bill and its importance in helping us deliver continued support to Scotland’s charities.

I therefore move,

That the Parliament agrees that the Charities (Regulation and Administration) (Scotland) Bill be passed.