It is an honour to speak in the debate. I hope not to detain the House too long. Let me first congratulate the right hon. Member for Cities of London and Westminster (Mark Field) on mentioning the late noble King James VI, given that the only charitable organisation that still exists from his reign is, of course, ScotsCare—based here in London and doing fantastic work.
Concerns have been raised in Scotland about the possible impact of this Bill because of the myriad issues it raises relating to the governance of charities across these islands. I am sure that these concerns will be shared by Northern Ireland Members, too. The right hon. Gentleman mentioned the burgeoning budgets of the Charity Commission for England and Wales, but between 2007 and 2015, its budget was cut by 48%, so let us scotch that myth straightaway.
No one should be in any doubt that in the space of the last 18 months civic society has been rocked by the recommendations of the Etherington report, and this crisis of trustee leadership that has brought us to this very point. To be clear, the level of trustee oversight in national organisations leaves a sour taste in the mouth—not just of those in this Chamber, but more importantly of those who have volunteered as trustees in the majority of charities across these islands.
It is telling that the organisations that have caused the most concern are the so-called national charities with well kent faces that have been held in high regard. What is the impact on the organisations so far investigated? It is limited, yet the impact on the majority of small charity trustees has been profound. They find themselves labelled in the mire of mismanagement, which has led us to this point, as they have been sullied by the bad practice and lack of due care.
Some may say that these small and medium-sized organisations will not be impacted by this legislation, yet we fail to recognise the profound impact this period will have on their ability to recruit, retain and develop their volunteer trustees. It is commendable that many Members in this Chamber are themselves trustees. The Minister for Civil Society, who is no longer in his place, noted that point, and I commend him for it. However, merely being an MP should not qualify someone to be a trustee through default of their position, as it were.
I am sure that the Members to whom I have referred are well versed in their areas of interest—notably the issue of ex-offenders, about which they have spoken eloquently today—but I am also sure that some Members, especially those who were elected at the most recent general election, were asked at the time of their election whether they wished to join various charities as trustees or directors merely on the basis of their predecessors’ having undertaken such a role. I believe that that in itself exposes a misguided approach to trustee recruitment, although it must be said that it is taken by only a small number of charitable bodies, and appears to have been adopted mainly by the larger organisations.
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I hope that we recognise the worth and value of our civic society, and especially the worth and value of the individual volunteers who manage charities, run services for charities, and, yes, even raise funds through traditional means. The hon. Member for Ilford North (Wes Streeting) mentioned that earlier; like other Members, he engaged in fundraising before entering the House. I hope that we recognise the importance of the charities themselves, and accept that we owe them an explanation of how their civic society has been allowed to be undermined by large non-governmental organisations with substantial investments and resources which really should have known better.
Although the Bill seemingly pertains only to England and Wales, the media frenzy surrounding its principal purpose has undermined, and will continue to undermine, civic society throughout these islands. As a Scottish constituency Member of Parliament—and I am sure that I speak on behalf of my hon. Friends—I understand that robust and separate charitable regulation exists. In England and Wales, charity law is mainly covered by the Charities Act 2011, while in Scotland it is covered by the Charities and Trustee Investment (Scotland) Act 2005. In England and Wales, the Charity Commission is responsible for registering and regulating charities, and in Scotland the Office of the Scottish Charity Regulator is the non-ministerial department—answerable to the Scottish Government, and therefore to the Scottish Parliament—that is responsible for regulating and registering charities in Scotland.
Following the publication of the Etherington report, it became clear to civic society in Scotland that a distinct approach to fundraising would be required, and
in July last year the Scottish Council for Voluntary Organisations expressed a fear that high-profile media reports of the failings of UK charities could damage the strong reputation of Scotland’s charities. As the national intermediary, the SCVO launched an informal review on fundraising in July, in parallel with the Etherington review. It reported in September 2015, recommending that fundraising should be agreed between charities, the public and the Scottish Government, and that a subsequent summit should be held on 26 November to deliberate and consider options. Building on Scotland’s civil society-led approach, the Social Justice Secretary, Alex Neil MSP, stated on 24 September that Scottish Ministers would engage in a cross-party discussion on changing fundraising regulation, thus ensuring consensus in the Scottish Parliament and, critically, in Scotland’s “fourth estate”, civil society.
Fundraising has been regulated by charities in both Scotland and England. As a result of the Etherington review, the Bill seeks to introduce a fundraising body for England and Wales, answerable to this Parliament. As I have said, Scottish charities fear that they could be affected by the Bill. The question of the regulation of fundraising in Scotland therefore remains open, and the SNP seeks the Minister’s reassurance that Scotland will retain the ability to legislate in this arena.
Our Scottish Government work with civil society in a constructive, collaborative way. They have been praised for their work with organisations working with and for those with disabilities and those gaining assistance from refugee bodies, and especially for their investment, over many years, in local support structures across all 32 local authorities to promote volunteer development, retention and expansion—critically, in the field of governance through trusteeship and directorship.
I can only assume that the cuts in the budgets of England’s volunteer centres and councils for voluntary service will have a continued impact on people’s opportunities to volunteer to be trustees in the communities that need them the most. If the Government are serious about trusteeship and charitable regulation, they must recognise that support is required by the small local community-based charities that have been drawn into this debate, which may suffer as a consequence of fewer people volunteering to be trustees, fewer people donating to local community charities run by volunteers, and fewer people being involved in the civic life of these islands.
The fact is that the large charitable bodies that have brought about this situation have got away with it, and the small and medium-sized charitable bodies will suffer disproportionately. With that in mind, SNP Members will also support new clause 3—tabled by the hon. Member for Redcar (Anna Turley), and we are delighted that she has done so—because we believe that without it, given legislation on charities that may be United Kingdom-wide but registered in England and Wales, their ability to inform debate will limit the independence of Scotland’s civic society.
The Bill seeks to introduce a new model of fundraising regulation in England and Wales, and the Scottish Government and Scotland’s national bodies are actively considering the implications of that for the regulation of charity fundraising in Scotland. It is right for as broad a conversation as possible to be held in Scotland to determine the right fundraising regulation for distinct Scottish charitable bodies, with the Scottish Government
engaging in a cross-party discussion on the changing of fundraising regulation. The question of the regulation of fundraising in Scotland must remain open. Whether it remains self-regulating or not, it is important for the House to understand that the decision on this devolved issue remains firmly in the hands of the Scottish Parliament.