Scottish Government 'forces charities to become social enterprises'

Charities without hope of generating profit are encouraged to change legal status, Labour MSP Lewis Macdonald claims

The Scottish Government is encouraging voluntary organisations to become social enterprises even if they have no prospect of generating their own income, a Labour MSP has claimed.

Last summer, the Scottish Government announced £50m in funding to help sector organisations become more enterprising.

But Lewis Macdonald, MSP for Aberdeen Central, told Third Sector that organisations that grew out of local need should continue to receive council grants.

He said a supported employment scheme in his constituency was encouraged to become a social enterprise when it was threatened with closure last year, leaving it unable to offer its workers any payment or transportation. "As a social enterprise it is a joke," said Macdonald.

A spokesman for the Scottish Government denied that any groups had been forced to become social enterprises.

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