Cuts in rural Scotland hit the third sector hard

News.., Rural — By TFNadmin on 02/05/2011 3:00 am

THIRD sector groups are being hit hardest in rural areas because of public sector funding cuts, according to a leading agricultural college.

Rural Scotland is taking the pain of public sector funding cuts more than the rest of the country with some rural areas much more vulnerable than others, the research shows.

The report by the Scottish Agricultural College (SAC) ranks each of Scotland’s local authority areas according to its vulnerability to further economic downturn following reduced public spending.

It has prompted the SAC to warn policymakers that a “one size fits all” approach to supporting rural Scotland won’t work and that rural areas face unique issues in dealing with the current funding crisis.

According to the index – which was produced and analysed in conjunction with Rose Regeneration and the Rural Services Network – the Western Isles, Argyll and Bute, Dumfries and Galloway, Moray and the Orkney Islands are the rural areas that are likely to be hardest hit with third sector organisations bearing the brunt of these cuts as it traditionally serves groups most affected by recession.

SAC researcher Dr Jane Atterton, author of the report, said that greater demands will be placed on the voluntary sector to help plug the gap created by reductions in public sector spending.

“The greater demands on voluntary and community organisations should not be under-estimated and these organisations need to be supported in taking on these new roles,” she said.

“Innovative thinking is needed in the public sector in terms of the co-delivery of services with different groups in the private and third sectors, or the joint delivery of services across local authority boundaries.

“The private sector in rural areas may struggle to take up the slack in terms of the jobs lost in the public sector so it is important that adequate support is in place for existing businesses and for those who may wish to set up new businesses. Good infrastructure is also important, not least in terms of high-quality, next generation broadband provision.”

The public sector is a key employer in rural Scotland, accounting for approximately one in five jobs. The report highlights that public sector job losses and pay freezes will result in reduced local spending in rural economies.

Combined with the demise of European funding, many rural third sector groups face increased pressure on their services.

Carnbroe Care, which befriends and supports older people in the Western Isles, has had to curtail its service because of increasing local authority funding cuts.

Combined with the demise of its European grants, it now operates on less than half the cash it did in 2009.

This has led to prioritising support to service only those in most pressing need.

“Rural areas face unique challenges,” says Rose Mooney of Carnbroe Care. “Public sector cuts have hit all regions hard but costs are magnified in rural areas. The public rely on voluntary groups more here; isolation is more common, transport is an issue and accessing services can be difficult.”

Norman MacAskill, SCVO’s head of rural policy, said: “SAC’s work is building an evidence base that supports a genuinely cross-cutting approach to rural policy.

“As a contribution to the current debate on service delivery in rural areas, this report confirms and strengthens many of SCVO’s arguments about the role of our sector, and about the particular challenges in rural areas.”