Youth charity faces closure after government funding changes

A youth charity is facing closure after more than three decades due to losing funding in a Scottish government revamp.

Young Enterprise Scotland (Yes) has accused the government of failing to "follow through" on financial assurances, leaving the organisation in an "untenable" position with 31 staff facing redundancy.

The charity was traditionally supported via government grants, but in July a new funding model was announced, using a "competitive" process, and several Yes applications were subsequently turned down.

The Scottish government told BBC Scotland News discussions with the charity were ongoing.

The charity develops "entrepreneurial mindsets in young people" through a variety of programmes in schools and colleges, aiming to help students learn about sales, marketing and financial planning.

It said it had supported more than 18,000 students in secondary school or college last year.

Funding was drawn from a core government grant, supplemented by support from trusts, foundations and the private sector.

The Glasgow-based charity's chief executive Emma Soanes said staff were "absolutely devastated" and that its future "now seems untenable with the loss of our major income source".

She added: “Not only will this have a huge detrimental impact on our dedicated staff team, who now face redundancy, but given our extensive reach across Scotland it will also impact massively on the national education landscape and the education of young people in Scotland of which our work played such a crucial role."

Ms Soanes said that the decision was "entirely at odds" with the government's own National Strategy for Economic Transformation plans.

The charity said it was already working with schools for the 2024/25 academic year when staff learned in July of funding changes being introduced with immediate effect.

The Entrepreneurial Education Fund then opened in August, offering grants of up to £250,000.

The decision on successful applicants is still to be announced but the charity told BBC Scotland News that it had been informed all five of their bids for funding had been rejected.

Dr Andy Campbell, the charity's chairman, said that although Yes could survive in a much smaller form without the funding, it had "historical outlays" to settle, which left it in "a precarious situation".

A Scottish government spokesperson said: “This year’s round of funding through the Entrepreneurial Education Pathways Fund is being awarded on a competitive basis for the first time. This is in alignment with wider entrepreneurial funding.

“All applications were assessed fairly against the criteria of the Fund. The Scottish government is currently in discussions with Young Enterprise Scotland.”