Voluntary organisations will be notified of funding decisions for the next financial year before the end of March, the Scottish government has announced.
In response to a written question submitted at Holyrood, ministers said funding notifications would be issued “as soon as is practicably possible”.
Colin Smyth, Scottish Labour MSP for South Scotland, asked the government what action it was taking to ensure that funding decisions were issued no later than December, and that funds were paid no later than the start of the tax year in April.
Shirley-Anne Somerville, Scotland’s communities, social security and equalities secretary, responded last week, saying: “We understand that organisations need timely grant decisions and payments in order to reduce financial uncertainty and effectively resource delivery.
“In line with the commitment given by the First Minister, we are working, within the context of the Scottish budget process, to issue notifications of funding arrangements to third sector organisations, as soon as is practicably possible and no later than end of March for funding beginning on 1 April.”
She added that the government had committed to deliver improvements in grant-making arrangements, including greater clarity and consistency of practice, as part of its programme for government.
Somerville also alluded to the government’s plan to increase the numbers of multi-year grants available to third sector organisations, which First Minister Humza Yousaf committed to at the Scottish Council for Voluntary Organisations’ conference last month.
When asked by Smyth if the Scottish government defined multi-year funding as a three-year minimum commitment, Somerville responded: “The First Minister has committed to increasing the number of two-year grants in the forthcoming budget, and longer where possible.
“It must be recognised that whilst we would wish to go further we face significant economic uncertainty and it would be wrong to make commitments we cannot sustain.”
Anna Fowlie, chief executive of Scottish Council for Voluntary Organisations, said she was pleased by the government’s response to Smyth’s parliamentary question.
“Too often, decisions are made and communicated very late in the day, even into the new financial year, which leaves staff at risk of redundancy and vital services at risk of closure,” she said.
“Given the financial constraints the Scottish government is under and the lateness of this year’s budget, I remain to be convinced that the government will be able to deliver on this commitment, but I hope to be proved wrong.”