- Liz McAreavey

A recent phone call to Edinburgh Chamber from one of our most popular and active members – the Edinburgh Dog and Cat Home – illustrated the scale of challenges facing businesses and other organisations across the country.
Liz McAreavey, CEO at Edinburgh Chamber of CommerceLiz McAreavey, CEO at Edinburgh Chamber of Commerce
Liz McAreavey, CEO at Edinburgh Chamber of Commerce

The Dog and Cat Home received an update from its energy suppliers which outlined the shocking reality

that their electricity costs are going up by 205 per cent and gas by 576 per cent. This comes to around £130k of additional costs that need to be met to ensure the safe running of the organisation.

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And it prompted some thought around what value our third sector partners make to our economy, and indeed to economic growth, as well as providing vital help and services.

Bear in mind that this is a sector which has an estimated 135,000 paid staff according to the Scottish Council for Voluntary Organisations, with more than 46,500 organisations creating an annual turnover of £8.5 billion. But, like others, our third sector businesses are struggling with the cost of doing business.

And at a time when, due to the cost of living crisis, their services are needed more than ever.

The challenges faced by the Dog and Cat Home follows the recent shocking news that Edinburgh Filmhouse was to close after running into financial difficulties because Covid and post Covid conditions had damaged so severely their viability. Again, 100 dedicated staff lost their jobs. The city lost a significant part of its cultural make up. A campaign to save both is underway.

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Businesses and third sector organisations are working more closely together than ever before, delivering services and products with real purpose designed to improve the economic wellbeing of our city. Our charities and third sector organisations now run along very commercial lines, working as efficiently and cost-effectively as possible.

Yet this vital sector also faces challenges that, for many organisations, are existential.

The findings from the latest wave of the Scottish Third Sector Tracker – covering the summer period 2022 - show the impact of rising costs is becoming increasingly apparent with 93 per cent of organisations experiencing rising costs in at least one area of their business, compared with 86 per cent in April. That pre-dates the October energy cost rises.

To mitigate these impacts, 40 per cent of organisations have applied for funding from new funders and one in three have used their financial reserves. One in ten have had to reduce their services or work.

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And again, like their colleagues in the commercial private sector, rising costs are not the only big challenge third sector organisations face. In the period covered, 72 per cent reported shortages and issues with staffing and volunteers and one in three said they had difficulty in planning for the future.

While it is largely the private sector that will drive economic growth through the creation of jobs and opportunities, the third sector has a big role to play. Not only in our economic wellbeing, but in our physical, mental, cultural and sporting wellbeing.

The third sector plays a vital role in Community Wealth Building, supporting those far from the job market into meaningful employment and working alongside private sector businesses to connect SMEs to local opportunities. Volunteer and third sector organisations are a crucial and valued element of our Chamber community and we will continue to partner and advocate for them over the difficult years ahead.

To support the Edinburgh Dog and Cat Home's Winter Appeal, please visit their website at edch.org.uk/winterappeal/

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