Why the Budget and Election Matter for Our Sector

21st January 2026

A challenging political moment, and a time for the sector to be heard

Author: Lynn Williams, Partnerships and Membership Coordinator

Understandably, so many of us feel disconnected from politics. Political rhetoric and language feel febrile, adversarial and, at times, really disheartening. Even for those of us who closely follow politics, both at home and abroad, what politicians say and do often feels increasingly disconnected from the realities of everyday life.

That made sitting down to analyse this year’s Scottish Budget a challenge. But this is a crucial moment: the final Budget before the election, and the last one to be delivered by Finance Secretary Shona Robison before she steps down in May. The decisions laid out here will impact the wellbeing of charities, community organisations, and families across Glasgow for years to come.

So, What Did the Budget Deliver?

The latest budget contained a mix of highlights, lowlights and notable gaps – many of which became more visible as analysts began to examine the finer detail.

Some helpful analysis can be found here:

Fraser of Allander Institute – A Budget where the silences were loudest
Institute for Fiscal Studies – Immediate response to the Scottish Budget and Spending Review
Child Poverty Action Group – S cottish budget response
Shelter Scotland – Response to the Scottish Budget

For our sector, however, the outlook remains challenging. Although there are investments that may eventually filter down to community organisations, wider structural and funding pressures continue. Poverty remains deep-rooted, and demand for support is rising in scale and complexity, while resources are not keeping pace.

The broader impact of UK Government policy adds another layer of difficulty for Glasgow’s communities.

In this blog, we highlight where the sector was referenced in the Budget. We also lay out some of the policy announcements most relevant to our work. Finally, we also look ahead to the upcoming election – including how we might encourage engagement at a time of historically low trust in politics.

How does the Third Sector Feature?

The third sector appeared across several policy areas in the main Budget document, with key allocations including:

Relevant Funding Commitments

Victim Support: £25.9m for third sector services and support within Community Justice funding.
Child Poverty Delivery Plan: £20m for third sector partners delivering community and employability support.
Sport and Physical Activity: Investment targeted to third sector partners to engage people with low activity levels.

Elsewhere, the sector was referenced more generally in discussions on local government and wider public sector reform.

Fair Funding

On fair funding, the Scottish Government stated:

“We will make progress on our commitment to fairer funding for the Third Sector and will continue to update and strengthen regulation to support charities in Scotland.”

There was also a commitment to three‑year funding for Disabled People’s Organisations (DPOs) and multi-year funding within the culture sector.

Announcements Impacting Families, Communities and Our Work

A range of policy measures will shape support for families and influence local services:

£40 per week Scottish Child Payment for babies under 1 (beginning 2027/28).
Child Poverty Plan funding boosted to £61.7m in 2026/27.
Early Learning & Childcare: £26.7m to support the Living Wage.
Flexible and wrap-around childcare: ongoing support for Early Adopter Communities; £2.5m for wrap-around care building on “Extra Time” and “Summer of Sport”.
£28m to local authorities for holiday food provision.
Employability: “No One Left Behind” receives £90m (£39m All Age, £40m Parental Employment Support).
£50m for Whole Family Support with a focus on parental employment.
Climate: £20m one‑off investment to local authorities and £6m for Community Climate Hubs.
International Development funding increases.

Notably, Fair Work received only a single, general mention in the main Budget document.

Wider Budget Measures

Other significant announcements include:

Public Services & Health

Additional investment for Scotland’s colleges
£36m for GP walk‑in clinics
Further funding for health and social care, with a strong focus on tackling delayed discharge
Emphasis on efficiencies across the public sector

Taxation

Higher council tax bands for properties over £1m
A Private Jet Tax
Reduced thresholds for intermediate and basic rate taxpayers

The Cabinet Secretary also urged local authorities not to impose substantial council tax increases.

A Spending Review was published alongside the Budget, offering further detail on projected allocations.

Looking Ahead: The Election and Why It Matters

As political parties begin setting out their stalls in advance of May 7th, many people may feel sceptical about what difference the Budget – or their vote – will make. But this election does matter. It could reshape the makeup of the Scottish Parliament, influence how parties work together, and change the tone and direction of policy for years to come. And as we face increased global uncertainty, it is crucial that the voices and experiences of people most likely to be affected by any likely economic impact are front and centre.

Just as many of us played a role during the Census, we now have a role in ensuring communities can ask the questions that matter most to them.

How Your Organisation Can Engage Before 7 May

Here are some practical ways to support democratic participation while staying within the rules for charities:

1. Identify Local Priorities

Gather insights from the communities you work with and share key asks with local candidates. (Candidate lists are available on political party websites.)

2. Host a Hustings

Create space for constructive discussion – while remaining politically neutral and compliant with OSCR guidance.

3. Use Local Media

Outlets such as STV, BBC Scotland and local radio welcome real-life stories and perspectives during elections.

4. Invite Candidates to Visit

An opportunity to showcase your work, highlight local issues and build relationships.

5. Encourage Voter Registration

Disillusionment is understandable, but with Scotland’s proportional voting system, every vote truly counts. Talk to those you work with about registering to vote.

Stay Connected

If you’re planning activities with the people and communities you support ahead of the election, we’d love to hear about them.

Please get in touch to share your work or to discuss how we can support local engagement in the months ahead.

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Join our membership community

Becoming a GCVS member helps us support your work and also helps GCVS to be a strong voice for the sector. If you are interested in opportunities to connect with key decision-makers and our membership community, please visit our membership page and sign up today.

This content was written by our team, with AI tools used only to support review and refinement.