CHARITIES have been given the green light to campaign and take sides in the independence debate after their regulator backed down in a row over their involvement in the referendum.

Trustees have now received new advice that overturns previous draft guidance suggesting there were few circumstances in which charities could legitimately speak out on the issue of whether a Yes or No vote in September 2014 was desirable.

This had prompted criticism, by 
the ­Scottish Council for Voluntary Organisations (SCVO), that debate was being stifled.

Now the Office of the Scottish ­Charity Regulator (OSCR) says groups north of the Border can voice an opinion on Scotland's future in the UK as long as they do not breach charity law. It also warns charities risk damaging their reputations if they overstep the rules.

Martin Sime, SCVO's chief executive, said: "It is important third-sector organisations are able to get fully involved in the debate and this guidance from OSCR will help them to think about the issues, while adhering to the law."

The volte-face follows criticism of the regulator's draft guidance, which 
was published in May. Charity 
leaders branded it vague and confusing, and said it risked stifling crucial debates.

The SCVO said charities were able to judge risk for themselves and should be at the heart of the constitutional debate.

OSCR says its new advice was revised in response to feedback, but that it 
still made clear the issues charities should consider and the laws they must heed.

Campaigning activity, including offering a view on the poll's outcome, must be in pursuit of a charity's core purposes and must not be prohibited by its constitution, the guidance says.

OSCR chief executive David Robb 
said the new guidance reinforced the regulator's position on general political campaigning but also considered the referendum specifically. He said: "For many charities, advocacy and campaigning is core business, and the referendum raises key questions on which charities will want a say.

"Our guidance aims to help charity trustees take part in the debate within the framework of charity law. On whether charities can advocate a Yes or No vote, our view is they may do so in pursuit of their charitable purposes."

The Scottish Refugee Council's 
chief executive, John Wilkes, said: "It is vital charities, often standing up for
the most vulnerable in our society, are heard in the referendum debate."

Jane-Claire Judson, national director at Diabetes UK, said: "The risk with an issue like the referendum is it is highly politicised and organisations may be nervous having these discussions. But another risk is not addressing it."

Both Yes Scotland and Better Together welcomed the revised guidance, saying it was vital charities were heard in the referendum debate.