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This item was published during the term of a previous administration that ended in April 2007

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Funding package for Scotland's social economy

27/01/2003

A £6 million funding package designed to support the development of Scotland's social economy was announced today.

This money will be used to stimulate growth in a fast growing sector which plays a key role in the delivery of public policy objectives in areas such as housing, childcare, care in the community and the New Deal.

The money could be used to:

  • strengthen asset base and capability of social economy organisations
  • improve staff training and development within social economy organisations
  • support entrepreneurial innovation by social economy organisations

Speaking at the Barnardo's 16+ project in Glasgow, Deputy Social Justice Minister Des McNulty said:

"We are determined to ensure better public services. To do this we must broaden the range of organisations that provide services to the public, particularly in the most deprived and disadvantaged areas.

"Since 1999 we have made significant advances in tackling poverty, through initiatives such as making 137,000 homes warmer through the Warm Deal and expanding child care provision. We have done this with help from social economy organisations. However, we acknowledge that there is more we can do in partnership with them, that is why we are making this investment in their future."

The Minister also launched a review of the Executive's policies to promote the social economy. This review sets out a vision for a strong social economy sector delivering quality public services alongside other mainstream providers such as local authorities.

Mr McNulty continued:

"Good relationships between social economy organisations and the public and private sectors are vital if we are to use their complementary strengths.

"Social economy organisations have already shown that they are particularly well equipped to contribute to the front line delivery of our strategic objectives such as renewing neighbourhoods, providing training and support for unemployed people and helping disadvantaged communities fight the scourge of loan sharks. We will consider how such organisations might, in future, be asked to build on this work."

Joan Stringer, Convener of the Scottish Council for Voluntary Organisations (SCVO), said: "The voluntary sector already makes a major contribution to the delivery of public services in Scotland. This report will help accelerate the sector's contribution to public life and create impetus across the Scottish Executive and the wider public sector to work in partnership with voluntary organisations for the benefit of Scotland."

  • The social economy has an annual income of about 2.2 billion pounds - around 4 per cent of Scotland's GDP. It employs 100,000 people and involves up to 700,000 volunteers in over 44,000 voluntary organisations, including some 22,000 charities.
  • Social economy organisations are independent of the state, have primarily social objectives and their surpluses are reinvested for that purpose.
  • The 6 million pounds funding package runs from 2003-04 to 2005-06.

Communities Scotland will contribute £3 million and the Scottish Executive £3 million. This is from money allocated in the 2003-06 Scottish Budget for new Social Justice initiatives.

  • Barnardo's 16+ project supports young people who are moving on from local authority care. The project has set up its own food co-op which is now used by many young people aged 16 and over from Glasgow.
  • Copies of the Social Economy Review are available on the Executive website http://www.scotland.gov.uk/library5/social/rose-00.asp

Page updated: Wednesday, July 21, 2004