Following the announcement of the Scottish Budget, Douglas Adam, Director of Public and Not for Profit at Livingston James, provides an in-depth analysis of what these measures mean for Scotland’s voluntary sector and the opportunities and challenges they present.
Progress and Persistent Challenges
Yesterday’s Scottish Budget offers hope for social investment, but for Scotland’s voluntary sector, facing unprecedented financial strain, promises alone won’t deliver impact. Whilst initiatives such as multi-year funding pilots and targeted support for child poverty are welcome, sector leaders must look beyond headlines to seize opportunities and address persistent challenges.
Multi-year funding is a significant step forward. After years of short-term contracts that undermined stability and planning, longer funding horizons can unlock sustained impact. They strengthen organisational resilience, improve governance, and support workforce retention, enabling charities to deliver strategic programmes at scale instead of firefighting year to year. Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs. Funding needs to be flexible, sustainable, and accessible.
Financial Pressures and Policy Gaps
Despite these positive steps, the sector remains under intense financial pressure. Many organisations still grapple with cash-flow volatility, rising costs, and uncertainty around funding rounds, conditions that weaken resilience and stifle innovation. These realities cannot be ignored.
The Budget signals progress in areas such as mental health funding, social care investment, Real Living Wage commitments, and child poverty interventions. However, gaps remain with full cost recovery, timely payments, and regulatory reform all still unresolved. The voluntary sector must be recognised as a strategic delivery partner, not a stop-gap provider, and should leverage these developments while advocating for sustainable funding and operational improvements.
Impact requires more than promises; it demands sustainable investment, collaborative planning, and matched resources. Leaders must engage policymakers to ensure commitments translate into operational certainty for communities.
Looking Ahead
With the Scottish Parliamentary election set for May 2026, this Budget carries political weight. Minority government status means compromises ahead, and the voluntary sector has a unique opportunity to influence manifesto commitments on funding stability, fair pay, and long-term investment.
Sector leaders must act now: engage all parties shaping 2026 manifestos, monitor Budget scrutiny for pre-election changes, showcase impact through evidence and case studies, and build alliances to amplify shared priorities.
This Budget demonstrates progress, but real impact depends on turning promises into delivery. In a pre-election climate, advocacy isn’t optional; it’s the lever that can shape Scotland’s social future.
Douglas leads the Public and Not for Profit Practice at Livingston James, specialising in senior executive and non-executive appointments within these sectors. Please reach out to Douglas directly if you are looking for support with any upcoming search assignments: [email protected]
Delivering Impact Requires More Than Promises: Reflections on the Scottish Budget
Following the announcement of the Scottish Budget, Douglas Adam, Director of Public and Not for Profit at Livingston James, provides an in-depth analysis of what these measures mean for Scotland’s voluntary sector and the opportunities and challenges they present.
Progress and Persistent Challenges
Yesterday’s Scottish Budget offers hope for social investment, but for Scotland’s voluntary sector, facing unprecedented financial strain, promises alone won’t deliver impact. Whilst initiatives such as multi-year funding pilots and targeted support for child poverty are welcome, sector leaders must look beyond headlines to seize opportunities and address persistent challenges.
Multi-year funding is a significant step forward. After years of short-term contracts that undermined stability and planning, longer funding horizons can unlock sustained impact. They strengthen organisational resilience, improve governance, and support workforce retention, enabling charities to deliver strategic programmes at scale instead of firefighting year to year. Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs. Funding needs to be flexible, sustainable, and accessible.
Financial Pressures and Policy Gaps
Despite these positive steps, the sector remains under intense financial pressure. Many organisations still grapple with cash-flow volatility, rising costs, and uncertainty around funding rounds, conditions that weaken resilience and stifle innovation. These realities cannot be ignored.
The Budget signals progress in areas such as mental health funding, social care investment, Real Living Wage commitments, and child poverty interventions. However, gaps remain with full cost recovery, timely payments, and regulatory reform all still unresolved. The voluntary sector must be recognised as a strategic delivery partner, not a stop-gap provider, and should leverage these developments while advocating for sustainable funding and operational improvements.
Impact requires more than promises; it demands sustainable investment, collaborative planning, and matched resources. Leaders must engage policymakers to ensure commitments translate into operational certainty for communities.
Looking Ahead
With the Scottish Parliamentary election set for May 2026, this Budget carries political weight. Minority government status means compromises ahead, and the voluntary sector has a unique opportunity to influence manifesto commitments on funding stability, fair pay, and long-term investment.
Sector leaders must act now: engage all parties shaping 2026 manifestos, monitor Budget scrutiny for pre-election changes, showcase impact through evidence and case studies, and build alliances to amplify shared priorities.
This Budget demonstrates progress, but real impact depends on turning promises into delivery. In a pre-election climate, advocacy isn’t optional; it’s the lever that can shape Scotland’s social future.
Douglas leads the Public and Not for Profit Practice at Livingston James, specialising in senior executive and non-executive appointments within these sectors. Please reach out to Douglas directly if you are looking for support with any upcoming search assignments: [email protected]
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