Charity Crisis As Edinburgh Council Cuts Cash

Charities across the city are preparing to take legal action over cuts in their funding from the city council.

Two dozen voluntary organisations had a total of £30,500 slashed from their grants as part of cost-cutting measures, despite being promised a set amount at the start of the year.

The groups, which included Gorgie City Farm and the Pilmeny Development Project, were given only seven days’ notice of the cuts, leaving them desperate to raise extra funds. It is also feared that although the majority of funding cuts are relatively small, it may be enough to force some organisations to the wall.

Sources in the voluntary sector said extensive behind-the-scenes negotiations have been ongoing since the announcement and that a legal case was being prepared.

The senior source said: “There’s a lot to lose for a charity to pursue legal action, but then some are doing this because they have nothing to lose now.

“It’s complex but things are moving, and work is actively ongoing; there will be some kind of progression soon enough.”

It is understood that it could either involve all the groups coming together as one to launch a case, with the objective of recouping money they were pledged at the start of this financial year, or recruiting an organisation – such as the Edinburgh Network of Voluntary Organisations or the Scottish Council of Voluntary Organisations (SCVO) – to lead the case on their behalf.

Gavin Yates, the SCVO’s spokesman, said: “Ultimately, it is a matter for the individual groups [to set in motion]. Of course, they will get our full support. Legal action for voluntary groups is an expensive business. By their nature they live on the cusp as it is, and legally cannot borrow money and have to stay in budget.

“When you withdraw this kind of money from these groups, it’s hard to cope and some will be struggling to survive if it continues next year. And these groups are part of the fabric in Edinburgh. Can you imagine if the Gorgie City Farm had to close or reduce the days it was open? It would be very sad if, because of these council cuts, these voluntary organisations were sending out P45s along with Christmas cards this year.”

A spokesman for Gorgie City Farm, which will be docked more than £2000, said: “We will now have to look for funding elsewhere and we might well have to cut back on projects or initiatives. It doesn’t hit us as hard because we only rely on the council for 40 per cent of our funding. Those who rely 100 per cent are much worse off.”

Ann Munro, a senior community worker with Pilmeny – which has helped the people of Leith since the 1970s – said: “We’ve been having crisis meetings as a result of this and there has been talk of legal action.

“We’ve already committed to services with our council grant and we can’t go back on them, so fundraising that usually raises money to help local people is now being diverted to pay for electricity bills and stamps.” A spokeswoman from the Pilton Youth and Children’s Project, which had £4000 recalled, said she feared even more cuts.

Councillor Marilyne MacLaren, the city’s education leader, said: “Making savings is always a difficult task but it is one that must be looked at in our current financial situation.”