Charity investments more important as government budget down 24%?

Charity investments may become an increasingly important means of income, as the Scottish government's draft budget reveals a 24 per cent cut in funding for the sector next year.

Cabinet secretary for finance and sustainable growth, John Swinney, notes the document "is set against the most dramatic reduction in spending imposed on Scotland by any UK government", which could account for the far-reaching changes.

And charity investments might rise as a result, with third sector support being lowered from £35.5 million this year to £27 million in the 2011-12 tax year.

However, money from other departments could be channelled into donations-reliant organisations, which may minimise the burden of the cuts, Third Sector reports.

Martin Sime, chief executive of the Scottish Council for Voluntary Organisations, opined: "Our public services face huge challenges," saying the measures demonstrate the Scottish government recognises the importance of support work carried out by the third sector. ADNFCR-2318-ID-800245916-ADNFCR