SCOTS charities have warned that they fear for their very survival and the wellbeing of the vulnerable clients in the wake of Brexit.

The national body for Scotland’s charities said the vote to leave the European Union “represents only risk for the third sector” and described the uncertainty following the referendum as “deeply damaging”.

To stay afloat many charities rely on EU funding, much of which is likely to be lost, amid fears that demand for help will increase in the event of a post-Brexit recession, according to the Scottish Council for Voluntary Organisations (SCVO).

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It is thought around £20 million of European “structural funding” could be lost to the third sector each year.

On behalf of the sector - which employs 140,000 workers and has a £4billion turnover - SCVO has met with Communities Secretary Angela Constance and Economy, Jobs and Fair Work Secretary Keith Brown to air their concerns.

They fear charities will be sidelined in talks to leave the European bloc with greater emphasis being placed on the impact on business and the economy.

There is a particular concern about the effect Brexit will have on charities currently trying to help people back into work.

Scotland has previously secured some £800m from two funds, the European Regional Development Fund and the European Social Fund, between now and 2020, it has been reported,with much of this flowing to charities.

However it is not clear that all of this will now be received.

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A report for SCVO says health charities also fear a collapse in research funding, including £1.2bn currently received each year by British universities from the EU’s Horizon 2020 research fund, while equalities charities are concerned about protections for disabled people being weakened amid UK Government plans to scrap the Human Rights Act. Environmental charities say withdrawing from strict EU environmental rules will undermine attempts to mitigate climate change and housing charities say a recession could thwart hopes of private sector support for new affordable housing.

John Downie, director of policy at SCVO, said even the creation of new funding streams would take time and could prove “catastrophic”, threatening the viability of charities reliant on short term grants.

He added: “The big worry for the sector is that a potential recession caused by Brexit will increase demand while affecting income.

“It is the poorest and the most vulnerable who will be affected most, and charities will be in the front line if there is a recession.”

He said SCVO had also sought reassurances that there would not be “slippage” in vital Scottish Government policies to tackle poverty.”

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“The fear is that plans for things like 50,000 affordable homes and a ‘fairer’ Scotland will be slowed down. If ministers’ attentions are focused on Brexit or the potential for a second independence referendum, that could all go off the boil.

“That is not something the Scottish Government will want to happen, but this will inevitably demand considerable attention and there are only so many resources available to them.”

SCVO is calling for the Scottish Government to put in place plans to help charities while new arrangements are being made. It is also calling for both the Scottish and UK governments to promote continued constructive work with other EU nations and organisations despite the EU verdict, and ensure the voice of charities is heard in discussions and negotiations.

Health, children’s and anti-poverty charities also took part in the meeting with Angela Constance and Keith Brown.

Ms Constance said: “The third sector is understandably concerned about its future with many organisations reliant on EU funding, and others fearing an increased demand on services if there is another recession.

“After some very constructive discussions I hope I have been able to provide the third sector with the reassurance that the Scottish Government recognises its work is essential, and its work is valued.

“We will do all we can to make sure its voice is heard in post-referendum discussions with the UK Government, and will continue to press the UK Government to provide full clarity and certainty on EU funds.”