Hansard

I thank all the members who contributed to this small but perfectly formed debate, and I again thank OSCR, which will undertake the work to ensure that the bill is implemented successfully, for its close and helpful co-operation with officials in the Scottish Government during the development and passage of the bill.

The bill aims to enhance transparency and accountability in charities, improve OSCR’s powers and maintain public trust in charities. Although it is a small and technical bill, it is nevertheless vital to the sector. Many colleagues have rightly begun to turn their attention to the wider review that was promised once the bill has been passed. The discussions that we have had as the bill has progressed will assist the Government as it looks to scope out the wider review. I thank colleagues for their remarks about the wider review. I agree with them on the importance of that, particularly as I accept that the bill is technical in nature.

We are all aware that the nature of the charity sector is changing rapidly, just as the sector has to deal with rapid changes in society. Today’s landscape, with the growth of enterprising charities, makes for a different context from 2005, when the original act was passed.

Although it is right to ensure that the rules surrounding the regulation and administration of charities remain fit for purpose, as the bill does, we recognise that there is more to do, whether that is around the role of charities, as Jeremy Balfour mentioned, or around the importance of recognising the needs of smaller charities, as Miles Briggs mentioned. I point out that charities with incomes under £25,000 can already, for example, produce simpler accounts. We take that into account, but I recognise that there is more that we need to do.

We will initiate a wider conversation on the longer-term future of charity regulation. It is very important that as part of that we address the concept of what a charity is in modern Scotland. We will require extensive consultation and stakeholder engagement with the charity sector so that we can define what the sector feels are the problems in the existing regime before we decide how to design the solutions. I will always welcome the contribution of members from across the chamber as we scope the review out.

It is clear to us that we must be conscious of the challenges that charities face, whether they come out of Covid or the impact of the cost of living on charities’ operations and funding streams, at the same time that many charities have an increase in demand for services. Witnesses at the committee spoke about the current lack of capacity in the sector to engage with and respond to consultations, so we need to be mindful of that in approaching the review.

Members have also, quite rightly, highlighted the concerns that many charities have around funding, and I recognise that the third sector needs stability and the opportunity for longer-term planning and development. Once again, I reiterate that the Government is committed to progressing a fairer funding approach to the third sector. Unfortunately, the volatile economic circumstances at the moment have presented real, additional challenges that have made it difficult to move forward with multiyear funding to the extent that we wished to during the coming financial year, but we are keen to move forward with that and with the wider fairer funding approach—including prompt notification of funding, outcome-based flexible funding and proportionate administration around applications and reporting.

The bill has been improved and strengthened as a result of the parliamentary process, and I am very grateful to the members of the committee and other members in the chamber for their contributions to the debate. I believe that we now have a bill that will help to strengthen the existing legislation, enhance transparency and accountability in charities, improve OSCR’s powers and maintain public trust in the charity sector.

I stress the importance of the charity sector in Scotland. People up and down the country volunteer and give their time, energy and money to truly commit and contribute to society, usually in an altruistic way, as they want to make a real and genuine difference to the community and the world we live in. It is important that my last words are my thanks to them for all that they do for all of us.