Meeting of the Parliament 16 June 2026 [Draft]
David Linden made a very important point that relates particularly to—but not only to—smaller organisations. The aim is to let them get on with the job; appropriate reporting and analysis is part of that work, but it must not become overburdensome and prevent them from getting on with their very important jobs. I very much agree with the sentiment behind David Linden’s remarks.
I welcome that the Cabinet Secretary for Public Service Reform will shortly meet the SCVO to explore opportunities around public service reform, and the partnership will align with the public service reform programme to strengthen collaboration. I also welcome that other charities have proactively reached out to the cabinet secretary, which once again demonstrates the sector’s readiness to innovate for the benefit of all those whom we are here to serve.
Alongside that progress, I must make clear the importance of listening to the concerns that the sector shares. We have repeatedly heard that the current system is unsustainable. The demand for services continues to increase, as do challenging financial pressures, which are worsened by costs such as the UK Government’s decision to hike employer national insurance contributions, placing pressure on employees and volunteers.
We recognise that the Scottish Government has a shared responsibility with the sector and other third sector funders not only to deliver services but to strengthen the foundations on which delivery relies. In February, I announced my intention to co-design a third sector partnership agreement. Following a strong endorsement of that vision in the recent election, I am delighted to take that work forward and, ultimately, create a strategic partnership of equals. Importantly, the partnership will include the whole sector; it will not reach only organisations with a direct funding relationship with the Government.
Work is at an early stage, but we have begun to identify key themes that will shape the first phase of engagement. Those themes will not dictate the outcome; instead, they will provide a baseline for open, meaningful and collaborative discussion.
First, on developing a partnership of equals, as I have emphasised, we want the third sector to actively inform and shape policy development. That means supporting transparency, sharing knowledge and embedding a culture in the Government that values the sector’s contribution.
Secondly, to support a strong and independent sector, we will explore governance, leadership and workforce resilience to ensure that the sector is equipped to meet future challenges within an effective regulatory environment.
The third theme is improving financial sustainability. The fiscal environment continues to place significant pressures on the sector, and the issue is recognised as a key driver of instability. We will encourage honest conversations about those challenges, identify opportunities for improvement and build on our fairer funding approach.
However, we must bear in mind that the Scottish Government does not receive multiyear funding and that providing multiyear grants for any organisation, including those in the third sector, takes away flexibility within the remainder of budgets. I ask members to bear that in mind, as we move through budgetary discussions, if they are requesting further multiyear settlements.